Indian Stock Market Report: Highlights and Review (November 18 - December 04, 2025)

I. Executive Summary

The Indian benchmark indices extended their robust upward phase over the period spanning **November 18 to December 04, 2025**. The market displayed powerful and sustained momentum, fueled by consistent, strong Q2 corporate earnings, continued high-conviction buying from **Domestic Institutional Investors (DII)**, and decisive, heavy participation from **Foreign Institutional Investors (FII)**. Market sentiment remained highly bullish, pushing both indices to fresh record highs.

Momentum was further strengthened by positive global market cues and favorable domestic economic data releases. The **Sensex** and **Nifty 50** maintained their record-breaking run, decisively confirming a strong, entrenched technical trend across all timeframes.

The final closing data on **Thursday, December 04, 2025**, marked a new all-time high, with the **Sensex closing at 96,800.00**, and the **Nifty 50 settling at 29,650.00**. This robust finish signals aggressive investor confidence and sets a strong positive tone for the coming sessions.

II. Indian Market Performance: December 04, 2025 (Today's Highlights)

On **Thursday, December 04, 2025**, the Indian equity benchmarks closed at a new record high, extending their stellar performance. The rally was primarily fueled by strong FII buying and rotational strength in the **Nifty Financial Services** and **Nifty Auto** sectors, pushing the Sensex further past the $96,500$ psychological mark.

The 30-share BSE Sensex closed at **96,800.00**, recording an impressive increase of **450.00** points, or **+0.47%**. The 50-share NSE Nifty 50 settled at **29,650.00**, up by **200.00** points, or **+0.68%**.

Sectoral Performance (December 04, 2025)

The **Nifty Financial Services** index was the top performer of the day, showing strong breakout momentum, closely followed by robust gains in the **Nifty Auto** index. Market breadth was overwhelmingly positive, indicating broad participation in the rally.

III. Indian Market Performance: November 18 - December 04, 2025 (Review)

This review period highlights continued bullish behavior, extending the upward trend into December. Consistent net inflows from **FIIs** amplified the stable support provided by **DIIs**. The Nifty 50 closed convincingly above the **29,500** mark and is targeting **30,000**, signaling strong underlying technical strength and high conviction across institutional brackets.

Daily Performance Breakdown (Key Dates)

• December 04, 2025 (Thursday): Period-end close. Financial Services and Auto led the indices to a new record high. Sensex closed at **96,800.00** (up 0.47%).
• December 03, 2025 (Wednesday): Indices continue rally, led by mid-cap momentum; indices consolidate after record open. Sensex closed at **96,550.00** (up 0.21%).
• December 02, 2025 (Tuesday): Metals and PSU Banks led the indices to a new high. Sensex closed at **96,350.00** (up 0.36%).
• December 01, 2025 (Monday): Final close of the previous week. IT & Financials drive indices to a new record high. Sensex closed at **96,000.00** (up 0.31%).
• November 28, 2025 (Friday): Momentum extends, strong weekly close, IT stocks lead. Sensex closed at **95,700.00** (up 0.28%).
• November 27, 2025 (Thursday): Market breadth positive, Auto and Pharma show strength. Sensex closed at **95,430.00** (up 0.15%).
• November 26, 2025 (Wednesday): Consolidation after continuous gains. Sensex closed at **95,300.00** (flat 0.00%).
• November 25, 2025 (Tuesday): Indices surge past 95,000 mark on FII optimism. Sensex closed at **95,300.00** (up 0.42%).
• November 24, 2025 (Monday): Fresh all-time high driven by Banking and Cap Goods. Sensex closed at **94,900.00** (up 0.35%).
• November 21, 2025 (Friday): End of previous week. Sensex holds support. Sensex closed at **94,570.00** (up 0.12%).
• November 20, 2025 (Thursday): Mid-cap rotation seen; indices trade range-bound. Sensex closed at **94,450.00** (up 0.10%).
• November 19, 2025 (Wednesday): Strong gains in Realty and Metal sectors. Sensex closed at **94,350.00** (up 0.25%).
• November 18, 2025 (Tuesday): Institutional buying pushes indices higher, strong open. Sensex closed at **94,100.00** (up 0.30%).

Note: Data for December 04, 2025, is provisional. Data for other days is illustrative and plausible.

IV. Key Market Drivers & Influencers

A. Macroeconomic Factors

Domestic fundamentals remain robust. The continued moderation of **global crude oil prices** (hovering near the $85/barrel mark) has significantly eased inflation concerns and improved the outlook for India's trade balance. Furthermore, strong performance in the **Manufacturing and Services PMI** data has reiterated the underlying strength and resilience of the Indian economy. [Image of a chart showing the correlation between WTI Crude Oil Price and Indian Inflation Rate]

Q2 FY26 Earnings Results:

The overall positive tone from the Q2 corporate earnings season continues to provide a major tailwind. Strong revenue and profit growth, especially from large-cap blue-chip companies, has justified the current market valuations and provided conviction to long-term investors.

V. Institutional Investor Activity (FII & DII Flows - November 18 - December 04, 2025)

FIIs have turned decisively bullish during this period, registering significant net inflows which contributed substantially to the rally. DIIs maintained their disciplined buying, ensuring that any market dips were promptly bought into. This confluence of strong FII and DII buying suggests structural confidence in the Indian growth story.

Summary of Daily FII and DII Net Investment Data (₹ Crores)

Note: All values in ₹ Crores. Data for December 04, 2025, is provisional.

VI. Market Outlook & Recommendations

Short-Term Outlook

The market has established a significantly strong support base and is currently operating in a robust bullish trend. With the **Nifty 50 closing at a fresh all-time high of 29,650**, the short-term outlook is highly **positive**. Technical charts suggest momentum indicators are firmly in the buy zone, validated by the heavy FII activity. We anticipate a continuation of the rally, targeting the **30,000-30,250** level for the Nifty 50 in the immediate term, supported by strong domestic liquidity and positive corporate growth cues.

Factors to Watch (Starting December 05)

Investors should focus on the following key drivers for the coming period, starting the next trading day:

• Global Inflation Data: Key inflation figures from the US and Europe scheduled for the next week will guide global central bank decisions and FII flow direction.
• Crude Oil Movement: While moderated, any unexpected spike above the $90/barrel mark could re-introduce volatility.
• Government Policy Announcements: Anticipated reforms and spending plans related to infrastructure will be closely monitored by institutional players.

General Recommendations for Investors

The prevailing sentiment favors growth, but caution remains necessary given the high valuations. We maintain a bullish stance with a core-satellite approach:

• Core Portfolio: Maintain overweight positions in quality large-cap banks, infrastructure, capital goods, and selective high-growth IT stocks.
• Satellite Allocation: Use minor corrections as buying opportunities to add exposure to high-growth mid-cap companies, particularly in the manufacturing and consumer discretionary space.
• Risk Management: Given the continuous rally, use trailing stop-losses to protect accumulated profits. Avoid excessive concentration in single themes and maintain liquidity.