Indian Stock Market Report: Highlights and Review (December 11 - December 29, 2025)

I. Executive Summary

The Indian equity markets entered a historic year-end phase during the period from **December 11 to December 29, 2025**. This window was defined by the monumental breach of the six-figure mark for the Sensex, a feat driven by cooling global crude prices, a surge in domestic retail participation via SIPs, and robust year-end allocations from global pension funds. The market successfully consolidated its gains above the psychological 31,000 mark on the Nifty 50, signaling a paradigm shift in India's valuation multiples.

As of the final session on **December 29**, the market sentiment remains "Extremely Bullish," supported by a strengthening Rupee and anticipation of business-friendly announcements in the upcoming Union Budget for 2026.

The closing data on **Monday, December 29, 2025**, marked a celebratory end to the penultimate trading day of the year, with the **Sensex closing at 102,150.00**, and the **Nifty 50 settling at 31,460.00**.

II. Indian Market Performance: December 29, 2025 (Today's Highlights)

On **Monday, December 29, 2025**, Indian indices extended their winning streak. The market opened with a "Gap Up" following positive cues from Asian peers and sustained buying in heavyweight stocks. The rally was spearheaded by **Banking**, **Automobiles**, and **Logistics**, as year-end travel and consumption data exceeded analyst expectations.

The 30-share BSE Sensex closed at **102,150.00**, recording an increase of **345.00** points, or **+0.34%**. The 50-share NSE Nifty 50 settled at **31,460.00**, up by **105.00** points, or **+0.33%**.

Sectoral Performance (December 29, 2025)

The Banking sector (Nifty Bank) outperformed, hitting a new high as credit growth remained resilient. Additionally, Defense and Aerospace stocks saw renewed interest following reports of new export orders for indigenous platforms.

III. Indian Market Performance: December 11 - December 29, 2025 (Review)

This 19-day period will go down in financial history as the era of the "Lakh-point Sensex." The market moved from 98,000 to over 102,000 with impressive speed, supported by a "fear of missing out" (FOMO) among global funds who had been underweight on India. Domestic liquidity via SIPs reached an all-time high of ₹30,000 Crores per month during this period.

Daily Performance Breakdown (Key Recent Dates)

• December 29, 2025 (Monday): Final Monday of the year; markets close at record highs led by Banking and Auto.
• December 26, 2025 (Friday): Post-Christmas rally; Sensex breaches 101,800 as global markets show stability.
• December 23, 2025 (Tuesday): Market consolidates above 101,000; mid-caps see heavy rotational buying.
• December 18, 2025 (Thursday): **Historic Milestone:** Sensex closes above **1,00,000** for the first time in history.
• December 15, 2025 (Monday): Strong WPI inflation data (lower than expected) triggers a 600-point surge in Sensex.
• December 11, 2025 (Thursday): Report start date. Indices gain momentum ahead of the milestone; Sensex at **98,750**.

Note: Market closed on December 25 and 27-28 (Weekend/Holiday).

IV. Institutional Investor Activity (FII & DII Flows - Dec 11 - Dec 29, 2025)

The second half of December witnessed an extraordinary surge in FII inflows, as global indices rebalanced. DIIs continued to provide a safety net, ensuring that any temporary profit-booking was met with strong domestic liquidity. Total institutional net buying for this 19-day window exceeded ₹65,000 Crores.

Institutional Inflow Trends (₹ Crores)

V. Market Outlook & Recommendations

Short-Term Outlook (Entering 2026)

The technical chart for Nifty 50 shows a strong "Ascending Triangle" breakout. With the **Nifty 50 at 31,460**, the immediate target for the first week of January 2026 is **31,800-32,000**. On the downside, **31,100** has now become a formidable support floor. We expect low-volume but positive trading in the final session of the year on December 31.

Key Themes for January 2026

• Earnings Season: Q3 FY26 earnings will begin in mid-January; expectations are high for the IT and Banking sectors.
• Budget 2026: The market will begin pricing in expectations for infrastructure tax sops and manufacturing incentives.
• Energy Transition: Increased focus on Green Hydrogen and EV infrastructure stocks is expected.

General Recommendations

As we enter the new year at record highs, "Quality over Momentum" should be the mantra:

• Profit Booking: Investors sitting on high double-digit gains in small-caps may consider partial profit booking and rotating into Large-cap Banking or FMCG.
• SIP Discipline: Do not stop SIPs due to high market levels; the long-term structural story of India remains intact.
• Watch the Yields: Keep an eye on the US 10-year Treasury yields, as any sudden spike could cause temporary FII outflows.