The Economic Times News

The Indian market ended higher on Friday, with the Sensex and Nifty a four-day losing run, as a cooler-than-expected U.S. inflation reading lifted global risk appetite and rekindled expectations of Federal Reserve rate cuts in the year ahead.

Elon Musks net worth has soared to an eye-popping $749 billionnow larger than the combined market capitalisation of Indias four biggest listed companies: Reliance Industries ($236 billion), HDFC Bank ($184 billion), Bharti Airtel ($142 billion) and Tata Consultancy Services ($132 billion).

Shares of GMR Airports, one of the worlds leading operators, can rally as much as 19% from current market levels, JM Financial said after initiating coverage on the counter, citing robust growth levers in the coming quarters.

Promoter selling surged to record levels in 2025, crossing Rs 1.5 lakh crore and surpassing last years peak of Rs 1.43 lakh crore. While the sharp rise has raised concerns among some investors, market veterans say the trend is more nuanced than the headline number suggests.

Japans MUFG Bank has made a decisive statement on Indias lending sector with its plan to invest Rs 39,620 crore in Shriram Finance for a 20% equity stake, in what is poised to be the largest foreign direct investment in Indias financial services space.

A select set of stocks delivered extraordinary returns between 2020 and 2025, far outperforming the broader market, Motilal Oswal said in its December 2025 Wealth Creation Study. The brokerage noted that the fastest wealth creators generated return CAGRs of up to triple digits during the period. These stocks stood out for sheer speed of wealth creation over five years.

The pace of new investor additions in the equity markets slowed in November, with growth declining 11.6 per cent month-on-month, as only 13.2 lakh new investors joined the market during the month, according to a report by the National Stock Exchange (NSE).

Ola shares closed the week 6% lower despite rebound on Friday, reflecting continued weakness in the broader trend. While short-term technical indicators hint at a possible relief bounce, Anand James, Chief Market Strategist, Geojit Investments Limited, cautions that the stock lacks confirmation of a sustainable reversal, suggesting more consolidation or downside risk ahead.

Indias growth story today is powered by its consumers. From bustling malls to the surge in e-commerce, the consumption sector is evolving against the backdrop of robust fundamentals.

Indias yield curve in 2025 has emerged as one of the clearest mirrors of the countrys evolving macroeconomic confidence. Rather than reacting mechanically to rate cuts, bond markets have repriced across maturities in a way that reflects near-term stability, medium-term policy credibility and a constructive long-term growth outlook.

Gold has staged a spectacular rally in recent weeks, breaking records both in global and domestic markets. Internationally, spot prices surged past US$4,370 per ounce, marking an unprecedented high as investors flocked to the yellow metal amid dovish central bank signals, geopolitical tensions, and persistent safe-haven demand.

Nifty snapped its four-session losing streak on Friday but still closed the week with a decline of 0.3%. Trading activity is expected to remain subdued across major global markets due to the extended Christmas holiday, even as Indian markets will be shut for just one day on Thursday, December 25.

Indias stock market has become one of the calmest in the world so calm that its prompting a rethink of strategies among players in the countrys vast derivatives space.

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.