The Economic Times News

Foreign Institutional Investors have sold Indian equities worth Rs 14,185 crore in December, contributing to total outflows of Rs 1,57,860 crore in 2025. However, recent buying ahead of the Santa Claus rally has narrowed outflows, sparking hopes for a 2026 reversal. The rupee's depreciation also saw a reversal, aiding the sentiment.

The Nifty ended the week mildly lower, extending its sideways consolidation within the 25,70026,100 band amid falling volatility. With no clear breakout and the India VIX near multi-year lows, markets may remain range-bound, making stock-specific and sectoral positioning crucial in the near term.

Even as AI mania dominated headlines in 2025, diversified and multi-asset strategies quietly delivered some of their strongest returns in years. Balanced stock-bond portfolios, global value trades and risk-parity funds outperformed expectations, underscoring the enduring appeal of diversification despite investors continuing to chase concentrated, thematic bets.

Sebi Chairman Tuhin Kanta Pandey said Indias Electronic Gold Receipts (EGR) framework may need a review as it has not gained the desired traction. He urged greater investor awareness of regulated gold products, stressing that EGRs were meant to help India emerge as a global gold price discovery hub.

Gold prices in India have slipped about Rs 1,300 from record highs ahead of Christmas as holiday-thinned global markets cap near-term momentum. Experts expect consolidation near Rs 1,35,000, with a potential 23% breakout or breakdown depending on global cues, interest rates and geopolitical developments.

Markets have been range-bound for over a year, awaiting triggers like earnings growth, trade deals, or rupee stabilisation, says Dikshit Mittal. He highlights midcap and smallcap stocks, NBFCs, consumer discretionary, and private capex as sectors poised for growth, while select IT pockets and the commercial vehicle cycle offer targeted opportunities for FY26.

U.S. existing home sales saw a modest increase in November, driven by easing mortgage rates. However, economic uncertainty and a shrinking inventory of homes for sale are keeping potential buyers hesitant. Despite a slight uptick in sales, the housing market faces significant headwinds, with affordability and labor market concerns limiting a stronger recovery.

FIIs trimmed stakes in key railway stocks, including RVNL, Texmaco, and IRCTC, amid sectoral weakness in Q2FY26.

Global borrowers are issuing a record amount of euro-denominated debt in 2025, a nearly 20% jump from last year, signaling a growing investor appetite for alternatives to the U.S. dollar. This surge, the third consecutive year of growth, also reflects lower interest rates, particularly for emerging markets. Despite this trend, the dollar remains the dominant currency for global borrowing.

Amit Shah has called for green building norms to become standard in housing. Developers should build affordable homes and train laborers. Transparency in the land market is crucial, moving away from land banking. The RERA law has improved developer operations and protected homebuyers. Reduced GST rates on building materials will lower costs, allowing builders to offer more customer facilities.

India's market regulator Sebi is forming a working group. This group will explore the future of stock exchange technology for the next 5 to 10 years. It will also benchmark global best practices. The aim is to strengthen market infrastructure and investor protection. Sebi is taking a systemic view of technical glitches across exchanges to enhance market technology.

As of September 2025, the firm held stakes in 12 BSE-listed companies, with the portfolio valued at Rs 66,655 crorea rise of 11% from Rs 60,221 crore in March 2025.

Indian equity markets are likely to remain range-bound in the near term as investors await clearer signals on earnings recovery, the rupees trajectory and progress on the IndiaUS trade deal, says Ashi Anand. He believes clarity on these factors could set the stage for the next phase of the bull run.

Infosys ADRs surged as much as 40% on the NYSE before trading was halted twice, despite the company denying any material trigger. A Canada-based report attributed the spike to a bizarre ticker-mapping glitch that may have confused automated trading systems amid thin year-end liquidity.

Crypto hedge funds entered 2025 expecting a breakout year, backed by regulation and institutional money. Instead, sharp volatility, shrinking arbitrage opportunities and an October crash exposed fragile market plumbing. Directional and altcoin-focused funds suffered heavy losses, while only market-neutral strategies delivered consistent gains.

Nifty logged its third consecutive weekly loss within a tight 321-point range, reflecting market indecision. Analyst Sudeep Shah sees key support at 25,77025,700 and resistance at 26,05026,100, with Nifty poised to target 27,000 in 2026. Bank Nifty and sectors like IT, Auto, and Metals show strength amid ongoing volatility.

Momentum investing may face short-term underperformance, but historical data shows these dips often precede strong long-term gains. Despite recent weakness of around 15%, forward excess returns have historically been robust over 1-, 3-, and 5-year horizons. Discipline and patience remain key for investors seeking long-term trend-driven returns.

Infosys ADRs surged 40% on the NYSE, hitting a 52-week high of $30 and triggering two trading halts. Analysts cite a combination of a short squeeze, automated trading glitches, and low holiday liquidity. Infosys clarified there were no material developments behind the sharp spike.

Kranti Bathini of WealthMills Securities says Indian markets remain in a consolidation phase, with Nifty oscillating between 25,85026,250. Despite FPI selling and rupee weakness, domestic liquidity supports resilience. Investors are advised to buy on dips and sell on rallies, while sectors like infrastructure, defence, nuclear energy, and semiconductors offer potential opportunities.

Thirteen small-cap stocks, including Kothari Industrial and Wardwizard Innovations, recorded losses for five consecutive sessions, with declines ranging from 5% to 23% amid broader market weakness.

Thirteen small-cap stocks, including Kothari Industrial and Wardwizard Innovations, recorded losses for five consecutive sessions, with declines ranging from 5% to 23% amid broader market weakness.

Kotak Equities expects Indian stocks to perform better in 2026, driven by earnings recovery, improved domestic consumption, and a stable macro backdrop. The brokerage added Dixon Technologies and Aadhar Housing Finance to its model portfolio, raised IndiGo weight, and trimmed Torrent, Airtel, and Reliance, highlighting selective positioning amid pockets of expensive valuations.

Infosys ADRs surged 40% on the NYSE, hitting a 52-week high of $30 before settling at $20.22, triggering two trading halts. The company clarified that no material events required disclosure. The rally follows Accentures strong AI-driven revenue beat, highlighting potential trends for the broader Indian IT sector.

In a challenging 2025, Vijay Kedia and Mukul Agrawal spotted six multibagger stocks, including OSEL Devices and Zelio E-Mobility, that delivered exceptional returns despite a tough market for smallcaps.

Next week, 11 IPOs, led by Gujarat Kidney and Shyam Dhani Industries, are set to open, with grey market premiums signalling potential listing gains of up to 57%.

Indias IPO pipeline stays active heading into year-end, led by Gujarat Kidney and Super Specialitys Rs 251-crore mainboard issue opening December 22. Alongside it, nearly 10 SME IPOs aim to raise about Rs 420 crore, keeping the primary market busy despite muted grey market premiums.

Bank of Americas India research head, Amish Shah, has said the nearly $18 billion FII outflow seen in 2025 could fade in 2026. He expects Fed rate cuts, a weaker dollar and better relative returns from Indian equities to support a reversal in foreign investor sentiment.

Inox Green Energy Services is set to acquire Vibrant Energy, an Indian renewable energy platform. The deal values Vibrant Energy at around $200 million. This acquisition will significantly expand Inox Green's presence in India's growing renewable energy sector. Vibrant Energy manages a substantial renewable portfolio and has a strong client base, including Amazon.

The East Bay experienced a series of six earthquakes on Friday evening. The tremors were centered near San Ramon. The strongest quake registered a magnitude of 4.0. Smaller quakes followed, with magnitudes of 3.8, 3.1, and 2.9. Residents in several communities felt the shaking. Transit services faced minor delays. No significant damage or injuries were reported.

ICICI Prudential Asset Management made its stock market debut on Friday. The company's shares listed at a significant premium. This listing propelled ICICI Prudential AMC to become the most valuable asset manager in India. Its market capitalization surpassed that of HDFC AMC. Analysts suggest a medium to long-term view for investors who received allotments.

Brookfield India Real Estate Trust has secured 2,000 crore from its first sustainability-linked bonds. The International Finance Corporation acted as an anchor investor. This marks another significant fundraising effort for the REIT. These funds will support future growth and expansion plans. Indian REITs are increasingly using bonds for financing acquisitions and diversification.

Japan's MUFG Bank will invest 39,620 crore for a 20% stake in Shriram Finance. This is India's biggest foreign investment in financial services. The deal will strengthen Shriram Finance's capital and accelerate its growth. MUFG will appoint two directors to Shriram Finance's board. This partnership aims to leverage global expertise with local strength.

ICICI Securities sees Nifty heading towards 29,500 by 2026 and has named Bank of India, Marico, Ultratech Cement, TCS and Sun Pharma as its top five stock picks with upside potential of up to 26% over the next year.

Ambit Capital has drawn parallels between stock markets and classical physics, outlining five laws that explain price behaviour. From inertia and momentum to mean reversion and valuation resistance, the framework helps investors decode why some stocks outperform while others stagnate, and why rich valuations often cap long-term returns.

The Japanese Yen saw a significant drop against major currencies on Friday. This happened after the Bank of Japan increased interest rates to a three-decade high. However, the central bank did not provide clear guidance on future rate increases. This lack of clarity led traders to sell the Yen.

In its final parliamentary session of the year, Prime Minister Narendra Modis government pushed through major economic reforms aimed at boosting growth amid trade challenges. Parliament approved bills allowing private investment in nuclear energy, full foreign ownership of insurance firms, and a unified securities market code.

In retaliation for a deadly ambush that killed two US soldiers and a civilian interpreter, the United States launched extensive air and ground strikes against Islamic State targets across central Syria. US Central Command described the operation, dubbed Operation Hawkeye Strike, as a massive assault involving over 100 precision-guided munitions, directly responding to the attack near Palmyra.

Net direct tax collections have risen 8% to 17.05 lakh crore by December 17, driven by strong corporate tax payments and reduced refunds. While corporate earnings appear robust, experts suggest the government might miss its budgeted target due to a potential shortfall in income tax collection.

New rules for the National Pension System offer more flexibility. Subscribers can now withdraw their entire pension wealth in a lump sum if it is 2 lakh or less. These changes aim to make the NPS more inclusive and responsive to subscriber needs. The amendments also provide clearer provisions for nominees and legal heirs.

The Pension Fund Regulatory and Development Authority (PFRDA) in India is facing a daunting challenge in rolling out minimum return guarantee products. A conflict within the PFRDA Act complicates the launch of these vital offerings.

India and Oman are set to implement a free trade agreement in the next three months. This pact allows Indian firms to employ 100% Indian staff for their investments in Oman. Oman offers zero-duty access on over 98% of its tariff lines for Indian exports. Indian businesses can invest in sectors like steel, energy, education, and healthcare in Oman.

Commerce Minister Piyush Goyal will visit Brussels next month for crucial trade talks. Negotiations for a proposed trade pact with the European Union are in their final stages. Both sides are working to bridge differences and conclude a comprehensive agreement soon. This pact aims to boost bilateral trade and cover 23 policy areas.

India has authorized Russia's Sberbank to import gold into the country. This inclusion is effective from June 25, 2025, until March 31, 2026. Sberbank joins Indian Overseas Bank and Union Bank of India on the list of gold importers for Fiscal Year 2026.

India will soon remove import duties on several Omani products. This is part of a new trade agreement, the CEPA, signed recently. Goods like crude oil, LNG, and urea will see duty cuts. The agreement aims to boost trade between the two nations. Implementation is expected within three months. This move will benefit both Indian consumers and Omani exporters.

An MoU was inked in this regard between the two countries. The JTIC will serve as a dedicated mechanism to review bilateral trade relations, promote two-way investments, address investment and trade barriers, and explore collaboration in sectors of mutual interest.

The Confederation of Indian Industry (CII) has presented its economic roadmap to Finance Minister Nirmala Sitharaman. Key proposals include reducing import duties on raw materials and industrial inputs. CII also advocates for simplified customs procedures and faster digital clearances. These measures aim to enhance domestic manufacturing and India's global competitiveness. The industry body seeks a calibrated approach to tariff restructuring.

The Reserve Bank of India's monetary policy committee decided on a 25 basis points repo rate cut. This move was driven by worries about economic growth slowing in the latter half of the fiscal year. Record low inflation provided the necessary room for this policy stimulus. The decision aimed to support demand and economic growth.

US cotton imports have surged to meet domestic textile industry demands for quality and specialized varieties, bridging a significant supply-demand gap. This increase, even with a temporary duty exemption, aims to bolster India's export competitiveness without adversely affecting farmers, as MSP operations continue.

The New York Stock Exchange (NYSE) has stopped halted the trading of Infosys' American Depository Receipts (ADRs) after it surged 40% to $26.62 on Friday, according to a CNBC-TV18 report.

The Securities Appellate Tribunal granted interim relief to Avadhut Sathe Training Academy, allowing operations to continue and permitting limited fund access, while staying Sebis ex-parte order until the next hearing in January 2026.