Did Indian Indices End the Week on a Bullish Note Due to Positive Global Signals?
Click to start listening
Synopsis
This week, Indian equity benchmarks showed resilience by bouncing back from a four-day slump, thanks to positive global signals from US inflation data. Both Nifty and Sensex closed in the green, reflecting a cautious but optimistic market outlook.
Key Takeaways
- Indian equity markets ended the week strongly after a four-day decline.
- Nifty rose 0.18 percent for the week, ending at 25,966.
- Sensex increased by 447.55 points, closing at 84,929.
- All sectors showed positive movement, led by Realty, Auto, and Healthcare.
- Market remains sensitive to global economic indicators.
Mumbai, Dec 20 (NationPress) The Indian equity markets wrapped up this week on a robust note, breaking a four-day downward trend, buoyed by favorable global cues emerging from US inflation figures.
The indices concluded the week strongly, with Nifty climbing by 0.18 percent over the week and 0.58 percent on the final trading day, reaching 25,966, as a softer US CPI report heightened hopes for a more lenient Federal Reserve policy.
At the end of the trading session, the Sensex was up by 447.55 points or 0.53 percent, closing at 84,929.
Throughout the week, Indian equities exhibited cautious behavior, impacted by ongoing foreign institutional investor (FII) outflows, depreciation of the rupee, and increasing global uncertainties.
Additionally, early trading sessions faced pressure from rising Japanese bond yields and expectations surrounding potential tightening by the Bank of Japan (BoJ), which elevated risk-averse sentiment across emerging markets.
Market analysts observed that bargain hunting and declining crude prices spurred large-cap stocks to rebound late in the week, alleviating most of the losses incurred earlier.
The broader indices also experienced slight gains, with the Nifty Midcap100 increasing by 0.04 percent, while the Nifty Smallcap100 remained unchanged, but gained 1.34 percent by the end of the week.
Sector-wise, all segments demonstrated a positive trend, with significant contributions from Nifty Realty, Auto, Healthcare, and Chemicals, while other sectors also registered modest gains.
The Nifty faces resistance at levels between 26,200-26,300, while support is expected around 25,700-25,800.
Analysts suggest that the markets may continue to exhibit a cautiously optimistic stance in the near term, yet remain highly reactive to global developments.
Key factors moving forward include insights from global central banks regarding their policy strategies for 2026. While sentiment appears favorable, short-term volatility may persist amidst uncertainties related to trade agreements and the stability of the Indian rupee.
Point of View
The recent performance of Indian equity markets exhibits resilience in the face of global uncertainties. While short-term fluctuations may persist, the overall tone remains cautiously optimistic, indicating potential growth opportunities for investors.
NationPress
23/12/2025
Frequently Asked Questions
What caused the Indian equity markets to rise this week?
The rise was primarily due to positive global cues stemming from US inflation data, encouraging investor sentiment.
What levels should investors watch for Nifty?
Investors should monitor resistance levels between 26,200-26,300 and support levels around 25,700-25,800.
How did sector performance vary this week?
All sectors traded positively, with significant contributions from Realty, Auto, Healthcare, and Chemicals.
What factors might influence the market in the near future?
Comments from global central banks regarding policy trajectories and trade deal timelines will be crucial for market direction.
Are there any risks to consider for investors?
Yes, ongoing volatility may arise due to uncertainties over trade deals and rupee stability.
