Stock Market Today: Nifty 50 Near 26,000; Sensex Trades Above 84,150

Indian Stock Market Today shows strong opening gains, sector-wide momentum, and key updates on the rupee, FII flows, and earnings

The Indian stock market opened on a positive note on December 12, 2025, as global cues supported buying interest across major indices. The Nifty 50 hovered close to the 26,000 mark, while the BSE Sensex also moved higher in early trade. Market sentiment improved after the US Federal Reserve announced a rate cut, which helped lift global risk appetite and encouraged fresh buying in equities. This came after a period of volatility when Indian markets had shown signs of consolidation.

Equity Performance and Sector Movements

Large-cap stocks led the uptrend during morning trade. Mid-cap and small-cap stocks also showed improvement, although gains were more modest. Sectors such as metals and real estate outperformed, helped by bargain buying and stronger cues from global commodity markets. These sectors had underperformed earlier, so renewed interest supported a broader market recovery.

Banking and information-technology companies showed mixed movement. Capital goods and industrial engineering stocks displayed strength due to recent positive reviews from analysts. Some IT companies, however, traded within a narrow range as investors remained cautious about margins and global demand. Despite this, most major sectors stayed in positive territory, reflecting an overall stable market tone.

Currency Pressure and RBI Intervention

The Indian rupee faced strong downward pressure and touched a new record low of around 90.47 against the US dollar. This decline came as concerns grew over slowing exports and ongoing trade disputes with the United States. Continued foreign portfolio outflows added to the pressure, making currency markets more volatile.

A weaker rupee raises fears of imported inflation, especially for sectors that rely on dollar-denominated inputs. It also creates uncertainty about corporate margins for companies dependent on imports. Reports suggested that the Reserve Bank of India stepped in to limit the currency slide, indicating the central bank’s readiness to maintain stability and prevent disorderly movements in the foreign-exchange market.

FII Outflows and Market Liquidity Concerns

Foreign institutional investors continued to influence market direction. Outflows recorded earlier in the year, amounting to several billion dollars, remained a major concern. Persistent selling by foreign investors has kept liquidity conditions tight and has contributed to higher day-to-day volatility.

Domestic institutional investors and strong retail participation helped provide some balance, reducing the impact of foreign selling during weakness. The relationship between global liquidity, foreign investor sentiment, and domestic economic conditions will continue to be one of the biggest drivers of near-term market behaviour.

Macro Forecasts and Economic Indicators

India’s medium-term growth outlook received support from updated projections by global agencies. The Asian Development Bank raised its forecast for India’s growth to 7.2% for the fiscal year 2026. This reinforced confidence in the country’s economic potential, especially as global growth remains uncertain.

Even with an improved long-term outlook, investors remain alert to near-term risks. Upcoming inflation data and monthly trade figures will play a key role in determining market direction. Any rise in inflation could increase expectations of a tighter liquidity stance from the central bank. Meanwhile, a widening trade deficit could add pressure on the currency and influence overall market sentiment.

Corporate Earnings and Company Updates

Corporate earnings continued to guide stock-specific movements. Several companies reported quarterly performance, with results differing significantly across sectors. Some information-technology firms showed stable contract wins and healthy deal pipelines. Others, particularly in cyclical sectors, indicated early recovery in demand conditions.

Analysts noted that earnings surprises were likely to cause sharp intraday swings. For example, a major IT exporter reported detailed commentary on deal wins and margin expectations, which led to noticeable movement in its stock. Many investors are watching earnings guidance closely, as management commentary often provides clues to broader industry trends.

Market Technical View and Short-Term Direction

Technical analysts observed strong support levels around 25,700 on the Nifty 50 and about 84,150 on the Sensex. These levels are expected to act as stability points if the market faces renewed selling. A sustained break below these levels could signal caution and lead to further weakness.

On the upside, resistance zones near 26,300 to 26,400 on the Nifty remain important. A clear move above these levels, supported by higher trading volumes, could indicate that the market has absorbed recent macro pressures and is ready for a stronger upward trend. Until such confirmation appears, the market is likely to witness alternating phases of consolidation and recovery.

Outlook for the Coming Days

In the short term, the stock market will depend heavily on several key factors. Domestic inflation figures, the Reserve Bank of India’s liquidity stance, and trends in the rupee will continue to play central roles. Foreign investment flows are also crucial, as consistent outflows can pressure both equities and the currency.

Global developments, especially further interest-rate decisions by the US Federal Reserve, will influence investor sentiment worldwide. Any indication of additional easing could support emerging markets, including India. On the other hand, renewed global uncertainty or geopolitical tensions could lead to increased volatility.

Final Thoughts

The Indian stock markets are treading with a sense of cautious optimism. The supportive global factors pulled up the major indices, but Caution on home turf due to devaluation and foreign outflows limited market volatility. Growth forecasts have been upgraded, and India’s long-term growth outlook continues to be positive. The immediate market uncertainty will likely persist as it responds to home market inflation trends, currency stability, business results, and foreign investment inflows. Caution on home turf due to devaluation and foreign outflows limited market volatility.