Mumbai: Indian equity markets are expected to remain largely range-bound this week as investors head into the final trading days of 2025. Market participants will closely track key macroeconomic data,
global cues and the trading behaviour of foreign portfolio investors (FPIs), analysts said. Thin volumes and cautious positioning are likely to keep volatility elevated.
Key Domestic Data in Focus
On the domestic front, investors will watch India’s industrial production (IIP) data for November, which will provide insights into activity across manufacturing, mining and electricity sectors. The final HSBC Manufacturing Purchasing Managers’ Index (PMI) reading is also expected to influence sentiment by signalling the health of factory output and demand conditions.
Auto sales numbers for November will be another important trigger. Analysts believe these figures will help assess whether the recent pickup in vehicle demand is sustainable as the economy moves into 2026. The data may also offer clues on consumer confidence and discretionary spending trends.
F&O Expiry and Year-End Volatility
This week also marks the December derivatives (F&O) expiry, which typically adds to short-term market swings. With only a handful of trading sessions left in the calendar year, investors are expected to avoid aggressive bets and focus on protecting gains, keeping indices within a narrow range.
Global Cues to Set the Tone
Globally, attention will be on the minutes of the latest US Federal Reserve meeting. These are expected to provide further clarity on the central bank’s outlook on interest rates, liquidity and growth. Updates related to the Fed’s balance sheet, along with US initial jobless claims and manufacturing PMI data from the US and China, will shape global risk sentiment.
Recent Market Performance
Indian markets ended the holiday-shortened previous week on a cautious note amid mild profit-booking and continued foreign fund outflows. The BSE Sensex rose marginally by 0.13 per cent, while the Nifty gained 0.29 per cent, reflecting selective buying rather than broad-based optimism.
Outlook Remains Constructive
Despite near-term uncertainty, analysts said the broader market outlook remains constructive, supported by domestic fundamentals and steady participation from local investors. However, global macro signals and FPI flows will remain key drivers until clearer cues emerge in early 2026.
