Mumbai: Indian stock markets closed last week on a cautious and weak footing as investors booked profits in the absence of fresh triggers.
Mixed global signals and muted sentiment kept buyers on the sidelines. The Sensex fell 367 points to close at 85,041, while the Nifty slipped 100 points to end at 26,042.
Broader markets also remained under pressure. The Midcap index declined 0.18 per cent, and the Smallcap index dropped 0.34 per cent, reflecting cautious participation beyond frontline stocks.
Range-Bound Trade Likely
Market experts expect the near-term outlook to remain muted and range-bound. Tight liquidity conditions and uncertainty around global cues are likely to prevent any sharp moves.
Analysts believe the Nifty’s immediate support lies between 26,000 and 25,800. As long as the index holds above this zone, sentiment may stay stable. On the upside, resistance is seen near 26,200, followed by 26,500. A decisive break below 25,800 could trigger short-term selling pressure.
IIP Data in Spotlight
One of the key domestic triggers this week will be the Index of Industrial Production (IIP) data for November 2025, scheduled for release on December 29. Investors will track the numbers closely for signs of recovery or slowdown in manufacturing activity, which could influence market direction.
Fed Minutes to Offer Global Cues
Globally, attention will be on the minutes of the US Federal Reserve’s December policy meeting, due on December 31. In its last meeting, the Fed cut interest rates by 25 basis points to 3.75 per cent.
Market participants will look for clues on the future pace of rate cuts, inflation outlook, and economic growth trends in the US, all of which can impact global capital flows.
Rupee and FII Moves Key
The Indian rupee, which weakened to 89.90 per dollar on Friday, will also remain in focus. Currency movement often influences foreign investor sentiment.
With no major domestic policy announcements lined up, experts believe foreign institutional investor (FII) activity, global signals, and stock-specific developments will guide market moves in the coming week.