Indian equity markets are expected to remain range-bound with a constructive bias this week as investors track key macroeconomic data, auto sales figures, and foreign portfolio investor activity. Analysts highlight that December F&O expiry and global cues could add volatility as markets transition into 2026.
With only a few trading sessions left in 2025, analysts suggest that investor sentiment will be shaped by a mix of domestic and global developments. Market watchers anticipate cautious positioning, thin volumes, and heightened volatility as the year closes.
Key Highlights
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Industrial production data for November will be closely monitored, offering insights into manufacturing, mining, and electricity activity.
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The final HSBC Manufacturing PMI reading is expected to provide signals on the health of the industrial sector.
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Auto sales figures will be tracked as a key indicator of consumer demand and sectoral momentum.
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Foreign portfolio investor trading activity remains critical, with inflows or outflows likely to sway near-term market direction.
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December F&O expiry is expected to add volatility, with traders adjusting positions ahead of the new calendar year.
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Global cues, including US macroeconomic data and Federal Reserve commentary, will influence risk appetite across emerging markets.
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Analysts maintain that despite volatility, the broader outlook remains constructive, with range-bound moves likely until fresh triggers emerge in early 2026.
Conclusion
As markets prepare to enter the new year, the interplay of domestic macro data, foreign investor flows, and global signals will define trading patterns. Investors are advised to stay alert to sector-specific updates and global developments that could shift sentiment in the final trading days of 2025.
Sources: Outlook Business, The Hindu Business Line, Free Press Journal