Daily Finance Pulse India - 10 December 2025
Indian markets are set to open after a weak close on 9 December 2025, with caution around US Fed policy, foreign outflows, and India–US trade tensions; stock market ahead for India on 2025-12-10: open; overall tone: neutral-to-bearish as large caps drag indices while mid- and small-caps show selective strength.
1/10
**Slide: Fed jitters and US trade worries drag Sensex, Nifty lower**
9 December 2025 · Indian equities fell for a second straight session as the BSE Sensex dropped around 436 points and the Nifty 50 closed below 25,850, pressured by foreign investor selling, global risk-off sentiment, and concerns over upcoming US Federal Reserve policy and India–US trade tensions.[4][7]
Impact: Near-term sentiment for Indian large caps remains fragile, so traders may stay defensive around Fed commentary and any escalation in trade rhetoric.
2/10
**Volatility: Nifty forms indecisive pattern while broader market outperforms**
9 December 2025 · After a gap-down start, Nifty 50 slipped below 25,900 but recovered part of its losses, forming a 'High Wave' candle that signals indecision; the index found support near its 50‑day EMA, while Nifty Midcap 100 rose 0.32% and Nifty Smallcap 100 jumped 1.14%, with 323 of Nifty 500 stocks closing higher.[1]
Impact: Despite headline index weakness, improving breadth and mid/small-cap strength hint at rotational buying opportunities for stock pickers.
3/10
**Gap-down: Global sell-off and Fed uncertainty hit Indian open**
9 December 2025 · Indian benchmark indices opened sharply lower on Tuesday, tracking overnight declines on Wall Street and weaker Asian markets, with GIFT Nifty trading nearly 100 points down before the open as investors awaited the US Fed’s rate decision and reacted to risk-off sentiment in global equities.[3]
Impact: Traders in India are likely to take cues from US Fed comments and global equity moves, keeping intraday volatility elevated.
4/10
**Pressure: Overvalued mid- and small-caps face continued selling**
9 December 2025 · Market strategists highlighted that failure to hold recent record highs and the absence of new triggers have led to fatigue, with many mid- and small-cap stocks seen as overvalued and now facing sustained selling even as a few large caps kept the earlier rally narrow.[2]
Impact: Correction in expensive mid- and small-cap names could create staggered entry points for long-term investors focusing on quality growth stocks.
5/10
**Tariffs: Trump threat on Indian rice raises trade and sector risk**
9 December 2025 · A Bloomberg-cited report noted that US President Donald Trump signalled possible new tariffs on Indian rice, saying he would address alleged 'dumping' in the US market, adding another layer of uncertainty to India–US trade talks and putting rice-related and export-oriented stocks in focus.[3]
Impact: Any follow-through on US tariff threats could pressure India’s agri exports and weigh on related stocks and the rupee.
6/10
**Flows: FPIs sell while domestic institutions provide support**
9 December 2025 · Foreign portfolio investors sold Indian equities worth about ₹655 crore net in the previous session, while domestic institutional investors turned net buyers at roughly ₹2,542 crore, partly cushioning the market from sharper declines.[2]
Impact: Persistent FPI outflows keep downside risks alive, but steady domestic buying is acting as a stabiliser for Indian markets.
7/10
**Travel: IndiGo flight cancellations ripple through hospitality stocks**
9 December 2025 · IndiGo’s cancellation of hundreds of flights over several days disrupted year-end travel plans and pushed more consumers toward staycations, with hospitality businesses in tourist-heavy regions such as Goa, Puducherry, and Kerala reporting shifting demand patterns amid the airline’s operational issues.[3]
Impact: Prolonged disruptions at India’s largest airline could reprice aviation and hospitality stocks and alter near-term earnings expectations.
8/10
**Primary market: Busy IPO calendar keeps liquidity in focus**
9 December 2025 · The primary market remained active with mainboard IPOs such as Corona Remedies and Wakefit Innovations entering their second subscription day, while several SME IPOs including Flywings Simulator Training Centre, Encompass Design India, and Methodhub Software were scheduled to close, alongside multiple SME listings and allotment finalisations.[3]
Impact: Heavy IPO activity can temporarily drain liquidity from secondary markets and create selective listing gains for investors who are choosy on fundamentals.
9/10
**Forex: Rupee sentiment tied to Fed path and FPI selling**
9 December 2025 · Commentators noted that near-term direction for Indian markets and the rupee is likely to be influenced by INR–USD movements, with FPI flows, global risk sentiment, and expectations around the Fed’s easing trajectory all in focus as traders gauge how US policy will affect emerging-market currencies.[2]
Impact: A more hawkish Fed or renewed risk aversion could pressure the rupee and import-heavy sectors, while a dovish tone may ease currency and bond yields.
10/10
**Commodities: Oil stabilises after prior slide on Fed and geopolitics**
9 December 2025 · After a roughly 2% drop in the previous session, global oil prices steadied as traders weighed ceasefire talks in the Russia–Ukraine conflict and awaited the US Fed’s policy signal, factors that could influence demand expectations and risk appetite for energy markets.[2]
Impact: Stable-to-softer crude prices provide some relief on India’s import bill and inflation outlook, supporting rate-cut expectations if the trend persists.