The market heads into next week with global cues in firm control. Overseas events remain the biggest driver for equities, and any shift in risk appetite could quickly ripple through domestic trade.
At home, steady economic data may offer support. Sectoral swings are possible if India-US trade talks slow. The recent conversation between Prime Minister Narendra Modi and US President Donald Trump has eased some headline risk, even though no concrete progress has been reported.
Domestic investors continue to anchor the market. Their consistent buying has absorbed early December FII outflows. Earnings expectations into FY27 remain solid, led by financials, industrials and consumption. A foreign brokerage’s view that India may outperform emerging markets in 2026 adds to the improving sentiment.
As the year nears its close, the broader market has turned more demanding. Selling pressure in mid and small caps reflects stretched valuations that were sustained largely by liquidity. That phase was unlikely to last. Continued FII selling adds to the strain, but India’s fundamentals are strengthening and growth prospects look healthier in the months ahead.
Foreign portfolio investors (FPIs) have sold shares worth Rs 16,930.05 crore so far in December. This follows their cash sales of Rs 17,500.31 crore in November and Rs 2,346.89 crore in October.
Domestic institutional investors (DIIs) have purchased shares worth Rs 36,101.26 crore so far in December. This follows their cash purchase of Rs 77,083.78 crore in November and Rs 52,794.02 crore in October.
India’s economic calendar begins on Monday, 15 December 2025, with the release of WPI inflation YoY for November, along with balance of trade data and November figures for exports and imports.
The flow of domestic indicators continues on Tuesday, 16 December, when HSBC releases its flash readings for the Composite PMI, Manufacturing PMI and Services PMI, offering an early view of activity momentum.
Globally, the week opens with Japan’s Tankan Large Manufacturers Index for Q4 and China’s November Industrial Production and Retail Sales numbers on Monday, 15 December 2025.
Momentum builds on Tuesday as the United States issues a packed macro docket, featuring October and November Non-Farm Payrolls, October Retail Sales, the November unemployment rate, building permits across November, September and October, and housing starts for the same period.
The data flow continues into Wednesday with Japan’s November balance of trade update and fresh US retail sales numbers for October.
On Thursday, attention turns to the United States as it releases critical inflation data, including core and headline readings for November, both month-on-month and year-on-year.
The week wraps up on Friday, 19 December, with Japan's November inflation report, followed by the Bank of Japan's interest rate decision. Later in the day, the United States publishes its November existing home sales numbers, offering another signal on the strength of the housing market.