The Indian equities ended the week marginally lower, with continued selling in heavyweight stocks outweighing steady buying interest in the mid- and small-cap segments. Market sentiment remained cautious through the week amid mixed global cues and uncertainty surrounding the policy outlook of major central banks. On the domestic front, easing wholesale inflation and a sharp narrowing in the trade deficit provided some underlying support to sentiment. A sharp rebound in Friday’s session helped cap weekly losses after a volatile and profit-booking-driven trade earlier in the week.
In the week ended on Friday, 19 December 2025, the S&P BSE Sensex dropped 338.3 points or 0.40% to settle at 84,929.36. The Nifty 50 index fell 80.55 points or 0.31% to settle at 26,068.15. The BSE Mid-Cap index advanced 1.26% to close at 46,547.30. The BSE Small-Cap added 1.25% to end at 56,667.26.
Weekly Index Movement:
The headline equity indices closed marginally lower on Monday. The S&P BSE Sensex shed 54.30 points or 0.06% to 85,213.36. The Nifty 50 index lost 19.65 points or 0.08% to 26,027.30.
The key equity indices slipped on Tuesday. The S&P BSE Sensex tumbled 533.50 points or 0.63% to 84,679.86. The Nifty 50 index lost 167.20 points or 0.64% to 25,860.10.
The equity benchmarks finished with minor cuts on Wednesday. The S&P BSE Sensex fell 120.21 points or 0.14% to 84,559.65. The Nifty 50 index lost 41.55 points or 0.16% to 25,818.55.
The headline equity indices ended marginally lower on Thursday. The S&P BSE Sensex shed 77.84 points or 0.09% to 84,481.81. The Nifty 50 index slipped 3 points or 0.01% to 25,815.55.
The domestic equity indices ended with substantial gains on Friday. The S&P BSE Sensex climbed 447.55 points or 0.53% to 84,929.36. The Nifty 50 index added 142.55 points or 0.55% to 25,958.
India-Oman Trade Deal:
India and Oman signed a Comprehensive Economic Partnership Agreement (CEPA) in Muscat on 18 December 2025, marking a major step toward deepening bilateral economic ties. The agreement will eliminate duties on nearly all goods, covering 98.08% of Indian export lines and 77.79% of Omani imports, and is scheduled to come into effect in the first quarter of 2026.
The pact is expected to significantly boost bilateral trade, which stood at $10.61 billion in FY 2024-25, by allowing 100% Indian foreign direct investment (FDI) in key Omani service sectors and substantially easing visa norms for skilled professionals. India has kept sensitive products such as agricultural products, including dairy, tea, coffee, rubber, and tobacco products; gold and silver bullion; jewelry; and other labor-intensive products such as footwear, sports goods, and the scrap of many base metals out of the deal.
Economy:
India’s trade deficit narrowed to a five-month low of $24.53 billion in November as exports rebounded and imports fell sharply. Merchandise exports rose to $38.13 billion from $34.48 billion in October, led by a 10% month-on-month jump in shipments to the US, while imports declined to $62.66 billion from $76.06 billion due to lower gold, oil, and coal purchases. The improvement follows a record-high deficit of $41.7 billion in October. Meanwhile, services trade remained strong, with exports at $35.86 billion and imports at $17.96 billion, resulting in a surplus of $17.9 billion.
Meanwhile, India’s wholesale inflation remained in deflationary territory in November, with WPI falling 0.32% year-on-year, easing from a 1.21% drop in October. Food prices continued to weigh on the index, though the pace of decline moderated, with wholesale food inflation at -2.6% compared with -5.04% previously. Vegetable prices fell 20.23% after a much steeper 34.97% drop in October, signaling some stabilization. Manufactured product prices rose 1.33% year-on-year, while fuel and power prices declined 2.27%, keeping overall inflation pressures subdued.
The HSBC Flash India Composite Output Index, which tracks month-on-month changes in combined manufacturing and services output, eased to 58.9 in December from 59.7 in November, indicating the slowest pace of output growth since February.
The HSBC Flash India Manufacturing PMI posted 55.7 in December, down from 56.6 in November. The latest reading signalled the smallest improvement in the health of the manufacturing sector for two years, albeit one that was still marked and more pronounced than the series average.
Meanwhile, the HSBC Flash India Services PMI Business Activity Index moderated to 59.1 in December from 59.8 in November. The HSBC Flash India Manufacturing PMI Output Index also softened to 58.4, compared with 59.6 in the prior month.
Stocks in Spotlight:
WPIL surged 11.1%. The company’s South African subsidiary, PCI Africa Consortium, has been awarded a contract for the upgradation and expansion of the Macassar Wastewater Treatment Works for the City of Cape Town. The said contract is valued at 2.50 billion rand (Rs 1,340 crore).
Elitecon International rose 4.46%. The company announced that it has secured a long-term international supply contract valued at around Rs 875 crore.
SEPC zoomed 13.19%. The company said that it has secured a domestic contract worth Rs 3,300 crore from South Eastern Coalfields (SECL) through the JARPL-AT Consortium, comprising Jai Ambey Roadlines (80%) & Avinash Transport (20%).
Antony Waste Handling Cell zoomed 14.82%. The company, its subsidiary, AG Enviro Infra Projects, has bagged two contracts for the collection & transportation of municipal solid waste (MSW) in Mumbai by the Brihanmumbai Municipal Corporation (BMC). The total value of the contracts is around Rs 1,330 crore.
Mahindra Lifespace Developers shed 0.75%. The company has announced the launch of Mahindra Blossom, a premium residential development in Whitefield, Bengaluru, with a potential GDV of approximately Rs 1,900 crore.
RailTel Corporation of India rose 1.03%. The company announced that it has bagged a domestic work order worth Rs 148.48 crore from the Office of the Registrar General & Census Commissioner, India (ORGI), for the procurement of comprehensive annual maintenance contract (AMC) services.
Arvind SmartSpaces advanced 2.11%. The company has acquired a new residential high-rise project in Whitefield, Bengaluru, with a total estimated saleable area of around 4.6 lakh sq. ft. and a top-line potential of approximately Rs 550 crore.
Mahanagar Telephone Nigam (MTNL) fell 1.93%. The state-owned telecom firm said its board approved the sale of a residential property in Mumbai. The transaction is part of MTNL's asset monetization plan. The company will sell the GN Block residential quarters at Bandra Kurla Complex to NABARD through a government-to-government transfer. The deal is valued at Rs 350.72 crore. It has a plot area of 2,680 square meters and a built-up area of about 4,019 square meters.
Global Markets:
Europe:
The U.K.’s inflation rate cooled sharply to 3.2% in November, strengthening expectations that the Bank of England may cut interest rates at its final policy meeting of the year on Thursday.
The European Central Bank (ECB) kept interest rates unchanged at 3.75%, while Norway’s central bank held rates steady at 4%, and Sweden’s central bank left its key policy rate unchanged at 1.75%. In contrast, the Bank of England (BoE) trimmed interest rates, with a small majority of the bank’s nine-member monetary policy committee (MPC) opting for a 25 basis point cut, bringing the base rate down to 3.75%.
Asia-Pacific:
Japan:
The Bank of Japan began its two-day policy meeting, with the central bank widely expected to raise interest rates to 0.75% on Friday, marking the highest level in 30 years.
Japan’s exports rose 6.1% year-on-year in November, according to data released by the finance ministry on Wednesday, accelerating from a 3.6% increase in the previous month.
Japan also released its fourth-quarter Tankan survey. The index for business optimism among large manufacturers improved to +15 in Q4, the highest level in four years, compared with +14 in the previous quarter. The non-manufacturing index for the fourth quarter stood at +34.
The Bank of Japan raised its benchmark interest rate by 25 basis points to 0.75%, marking its highest level since 1995.
Japan’s consumer inflation rate dropped to 2.9% in November, government data showed Friday. Core inflation, which strips out prices of fresh food, remained unchanged from 3% in October.
The annual inflation rate in the U.S. eased to 2.7% in November 2025, marking its lowest level since July. The reading came in below market expectations of 3.1% and was also lower than the 3% recorded in September, offering further relief on the inflation front.
China:
China’s retail sales grew 1.3% year-on-year in November, slowing from a 2.9% rise in the previous month. Industrial production increased 4.8% year-on-year, marginally lower than the 4.9% growth recorded in October.
Australia:
Flash PMI data from S&P Global showed that business activity in Australia expanded at a slower pace in December. The composite PMI eased to 51.1 from 52.6 in November.
United States:
Job growth totaled a seasonally adjusted 64,000 in the latest month, beating market expectations of 45,000 and rebounding from a sharp decline in October.
The unemployment rate climbed to 4.6%, the highest level since September 2021. A broader measure of unemployment, which includes discouraged workers and those working part-time for economic reasons, rose to 8.7%, the highest since August 2021.