Weekly Market Review & Top Stocks In Focus For The Week Ended December 12, 2025

Indian Stock Market yet again started the week on a negative note with Monday’s session seeing a drastic fall. If we analyse the performance for the last quarter of calendar year 2025, then Nifty is up close to 5% which is largely in line with some of the global peers. Yet as discussed earlier as well, many investors are not happy because portfolios are telling a different story. Small Cap Index is down 3% while Mid Cap Index is up 2.50% during the same period. This itself shows a sharp mismatch between the frontline indices and the broader market performance.

The reason we have highlighted earlier was the aggressive selling by the Foreign Institutional Investors which stands at Rs 1.555 lakh crore. However, this time around we have seen Retail investors also turning net sellers who typically invest in broader markets. Data shows that for the month of October they were net sellers to the tune of Rs 13,776 crore and in November as well they sold close to Rs 12,180 crore. We believe this continuous selling has affected negatively on the broader market performance.

Apart from this, the leverage in the system i.e., Margin Trading Facility (MTF) book has surged drastically from Rs 68,000 crore in March 2025 to Rs 1,12,000 crore as on date. Hence when stocks fall and if the additional collateral is not provided then brokers are forced to square off the trade. This is another reason why we are seeing severe correction in stock prices across broader markets.We believe this aggressive selling in broader markets that accelerated from Mid-November is undergoing the last leg of correction which is usually the most painful. Currently we are seeing market wide valuation reset with almost 65-70% of the entire small and midcap universe being down close to 25-40% from their recent highs.

This week’s important was the FOMC Meeting outcome and as expected the Fed has reduced rates for the 3rd time by 25bps to 3.5-3.75% with Powell stating that that he wants to bring inflation under control, coming back down to 2% and intends to hand over the reins to his successor on solid note. Remember, President Trump will be beginning final interviews of candidates for Fed Chair this week.

Interestingly, what came out of the box was the phone call between Prime Minister Modi and President Trump where both the leaders discussed expanding cooperation in key areas including trade, critical technologies, energy, defence and security. Further Trump’s administration official statement highlighting that India has the ‘best ever’ offers with regards to the deal boosted the sentiment with many believing Trump could sign the agreement sooner.

We are of the view that as long as business continues to deliver earnings, stock prices will eventually follow, hence phases like these are ideal time to deploy money if investors are sitting on cash. Right now, the best thing is to stay disciplined and focus on long term growth. Indian Markets have had its own share compared to steady global peers in the past one year amid foreign institutions pulling their money out and tariff concerns, but have now regained strength led by policy measures, GST reduction, and improving earnings outlook. Hence, despite some speed breakers that continue to arrive, we continue to remain positive on Indian equities. With this let me present to you our weekly market review.

How Did the Markets Fare Last Week?

On a weekly basis ending on Friday, the Indian benchmark indices ended in red. Sensex and Nifty were down 0.5% each while Midcaps were down 0.3 % during the week. 

What Might Keep the Markets Busy Into the Next Week?

With key monetary events now out of the way, markets will once again focus on key data releases and events that come our way. Starting with domestic events, India’s Consumer Price Index (Inflation) data will be released for the month of November and the expectation this time around is of modest gains while remaining near multi-year low levels driven by fading base effect and pickup in food prices. We also have data with respect to Trade Deficit, Bank Loan, WPI Inflation, HSBC Composite/Manufacturing/Services PMI that will be monitored closely.

On the global front we Fed Official Speech, the key Inflation data, S&P Global Composite/Service/Manufacturing PMI, Retail Sales, Initial Jobless Claims, Existing Home Sales data. Market will also keep focus on Foreign Institutional Activity, Rupee Movement and Update with respect to India-US trade deals that are likely to drive Market Movement.         

Crude and FII Flows

Brent Crude Oil Prices rebounded from its lowest close in nearly 2 months to around $61/bbl, on rising geo-political tensions, with a resolution to Russia-Ukraine conflict through diplomacy continuing along with fresh confrontation brewing in Latin America. On the other hand, FIIs continue to remain Net Sellers for the week.

Sector in Focus

PSU Bank, Pharma & Auto remained in focus during the week.

Stocks That Remained In Focus During The Week

Yes Bank:

• According to sources, The Bank’s Nomination and Remuneration Committee (NRC) has decided not to extend the tenure of Ranjan Pental, Global Head of Retail Banking. Pental, who joined the Bank in 2015 and became Executive Director in 2023, is expected to exit when his term ends in February 2026.

Tata Steel:

• The company management said engineering work has begun for phase 1 of the Neelachal Ispat (NINL) expansion, which is expected to see the largest capex under its India capacity addition plan. The company added that its 50.01% stake purchase in Thriveni Pellets was done at near book value. The NINL expansion is expected to take 3-4 years after board approval.

Autoline Industries:

• Autoline Industries has diversified into electric two-wheelers through its subsidiary Autoline E-Mobility Pvt. Ltd., which has received accreditation for its OXSTAR Z1 and Z2 models. The company has also begun sourcing power from a 6.5 MW open-access solar plant at its Nanekarwadi, Pune unit, expected to cut electricity costs by ₹4–5 crore annually and shield it from future tariff hikes.

GMDC:

• GMDC is expanding its national presence by diversifying into the coal sector, acquiring three coal blocks in Odisha, with the 15 MTPA Baitarni-West mine standing out as the most value-accretive. Aligned with the Atmanirbhar Bharat vision, GMDC has awarded a mining partner the operational contract to commence planned production and strengthen India’s energy ecosystem.

Anupam Rasayan:

• Anupam Rasayan has signed a definitive agreement to acquire Jayhawk Fine Chemicals for ~$150 million, giving it a strategic U.S. manufacturing base and strengthening its high-value polymer, performance materials, and global CDMO capabilities. The acquisition enables forward integration, wider customer access, and cross-selling, while the combined India–U.S. dual-site model enhances R&D, innovation, and supply-chain efficiency.

Indigo: 

• IndiGo has restored full operations with all scheduled flights running under an adjusted plan, on-time performance normalized, and nearly all delayed baggage delivered. The airline is operating over 1,800 flights as of 9 Dec 2025 and to reach ~1,900 on 10 Dec, while also rolling out an automated full-refund process for cancellations after receiving a notice from the Directorate General of Civil Aviation (DGCA), directing a 10% reduction in the domestic winter schedule 2025 across all sectors. It has also revised its Q3FY26 guidance, now expecting mid-single-digit YoY moderation in PRASK versus its earlier flattish-to-slight-growth outlook.

Zydus Lifesciences:

• Zydus Lifesciences’ UAE arm has forged an exclusive partnership with Formycon AG to license and supply FYB206, a biosimilar to Keytruda®, for the U.S. and Canadian markets. Under the arrangement, Formycon will manage product development, regulatory submissions, and manufacturing, while Zydus will oversee commercial rollout. A BLA filing with the USFDA is anticipated shortly, advancing the goal of expanding access to affordable immunotherapy treatments.

Welspun Corp:

• The company’s associate, East Pipes Integrated Company for Industry (EPIC) in Saudi Arabia, has signed a contract with the Saudi Water Authority to manufacture and supply steel pipes worth over 485 million SAR (about ₹1,165 crore). The contract will run for six months, and its financial benefits will appear in EPIC’s Q4FY26 and Q1FY27 results.

Siemens:

• Siemens Ltd has agreed to sell its low-voltage and geared motors business to Innomotics India for ₹2,200 crore on a cash-free, debt-free basis. This business includes several motor product lines and related services and made up about 4.5% of Siemens’ total revenue in FY24. In that year, Siemens posted revenue of ₹20,496.6 crore and had a net worth of ₹15,210 crore.

Nuvama Wealth:

• The company has announced a stock split, dividing each ₹10 share into five ₹2 shares. Shareholders approved this on 7 December 2025, and the record date to determine eligible shareholders is 26 December 2025.