Mumbai: Indian equity benchmarks closed the week with solid gains, setting the stage for a data- and event-heavy week ahead. On Friday, the Sensex advanced 450 points, or 0.53 per cent, to end at 85,267.66,
while the Nifty climbed 148 points, or 0.57 per cent, to settle at 26,046.95. Broader markets outperformed, with the BSE Midcap index rising 1.14 per cent and the Smallcap index gaining 0.65 per cent, reflecting improved risk appetite.
Investor wealth expanded sharply during the session, with total market capitalisation of BSE-listed companies increasing by over Rs 3 lakh crore to cross Rs 470 lakh crore.
Inflation Data in Spotlight
The key domestic trigger next week will be wholesale price inflation data. The Ministry of Commerce and Industry is scheduled to release WPI numbers for November on December 15. Investors will closely track the data for signals on input cost pressures and its potential implications for corporate margins, especially in manufacturing and commodity-linked sectors.
Trade Talks with the US Remain Crucial
Global cues will be led by developments in India–US trade negotiations. Recent reports suggest that both countries have agreed to maintain constructive and forward-looking engagement following two days of discussions between Indian officials and a US delegation led by Deputy US Trade Representative Rick Switzer. Talks covered key trade issues and ongoing efforts to finalise a mutually beneficial bilateral trade agreement, which could influence export-oriented and trade-sensitive sectors over the medium to long term.
Rupee Movement and FPI Flows
Currency movements are also expected to play a critical role in shaping market sentiment. The rupee has remained under pressure amid sustained foreign portfolio investor outflows, uncertainty surrounding the trade talks, and strong dollar demand from importers. Any sharp movement in the currency could have a direct bearing on rate-sensitive and import-dependent sectors.
Foreign investor behaviour continues to be a key concern. FPIs have remained net sellers throughout 2025 and are nearing the second-highest number of net selling days seen in the past two decades, adding to volatility concerns.
Technical Levels to Watch
From a technical perspective, analysts see immediate resistance for the Nifty at 26,200, followed by higher hurdles at 26,400 and 26,500. On the downside, support is placed at 25,900 and 25,800, with a breach below 25,700 likely to trigger fresh selling pressure.
