Daijiworld Media Network - Mumbai
Mumbai, Dec 14: After ending the week with solid gains, Indian equity markets are expected to navigate the coming week guided by a combination of domestic indicators and global developments, including wholesale inflation figures, progress in India–US trade negotiations, currency movements and sustained foreign investor activity.
On Friday, benchmark indices extended their upward momentum, with the Sensex climbing 450 points, or 0.53 per cent, to close at 85,267.66. The Nifty also advanced 148 points, gaining 0.57 per cent to settle at 26,046.95.
Broader markets outshone the benchmarks, as the BSE Midcap index surged 1.14 per cent while the Smallcap index rose 0.65 per cent, reflecting broad-based buying interest.
Investor wealth witnessed a significant boost during the session, with the total market capitalisation of BSE-listed companies rising to over Rs 470 lakh crore from Rs 466.6 lakh crore in the previous session — an increase of more than Rs 3 lakh crore in a single day.
In the week ahead, inflation data is expected to be a major market trigger. The Ministry of Commerce and Industry is slated to release the wholesale price index (WPI) inflation data for November on December 15, which could influence sentiment, particularly in interest rate-sensitive sectors.
Developments on the India–US trade front will also be closely tracked. Reports suggest that India and the United States have agreed to maintain constructive engagement following two days of discussions between Indian officials and a US delegation led by Deputy US Trade Representative Rick Switzer. The talks covered key trade concerns and ongoing negotiations aimed at reaching a mutually beneficial bilateral trade agreement, with potential long-term implications for several sectors.
The rupee’s movement will remain another critical variable. Continued foreign fund outflows, uncertainty surrounding trade negotiations and strong dollar demand from importers have kept the domestic currency under pressure.
Foreign portfolio investor behaviour continues to weigh on market sentiment. FPIs have remained net sellers through much of 2025 and are nearing one of the highest counts of net selling days seen in the past two decades.
From a technical perspective, analysts noted that the Nifty faces immediate resistance near the 26,200 level, followed by 26,400 and 26,500. On the downside, key support levels are seen at 25,900 and 25,800, with a breach below 25,700 potentially triggering further selling pressure.