India’s financial markets are expected to enter a crucial and volatile trading week from December 8 to 12, as a combination of domestic economic triggers, global monetary cues, and geopolitical developments influence investor sentiment.
With India and Russia targeting a $100 billion trade partnership by 2030, the RBI’s latest 25 basis point rate cut and the U.S. Federal Reserve’s upcoming policy decision, analysts expect a week marked by sharp intraday swings and sector-specific divergence.
Stock Market Prediction Next Week From 8 to 12 December
The Indian benchmark indices touched fresh all-time highs during the week ending December 6, but failed to sustain the upward momentum. The Nifty50 briefly hit 26,325.80, while the Sensex touched 86,159.02 before retreating to close nearly unchanged at 26,186.45 and 85,712.37, respectively.
The muted close reflected a battle between positive domestic cues and rising headwinds. The RBI’s 25 bps repo rate cut to 5.25%, its fourth rate cut of the year, boosted sentiment. Strong Q2 GDP growth, improving prospects for the U.S.-India trade agreement, and optimism around a potential Federal Reserve rate cut further supported the market.
Key Factors To Drive Market Sentiment Ahead
Rupee at 90 Against US Dollar
However, the rupee weakening below 90 against the U.S. dollar raised concerns over inflation and import costs. Persistent foreign institutional investor (FII) selling-marking the sixth consecutive week of outflows totalling Rs 10,404 crore-also dampened confidence. Meanwhile, domestic institutional investors (DIIs) offered strong support with Rs 19,786 crore in net inflows.
Smallcap and Midcap Stocks Under Pressure
Sector performance remained mixed, consumer durables and capital goods corrected sharply, falling 3.19% and 2%, while the IT index surged 3.5%, supported by global rate-cut expectations. Smallcap and Midcap indices remained under pressure for the third week in a row.
India-Russia Trade Deal: India and Russia Target $100 Billion Trade by 2030
India and Russia have announced an ambitious plan to raise bilateral trade to $100 billion by 2030, up from an estimated $68 billion in FY25, driven by India’s expanding export footprint across defence, pharmaceuticals, marine products, IT-BPM, healthcare, engineering goods, textiles, and jewellery.
Rupee-Ruble Settlements
The expanding usage of rupee-ruble settlements is also expected to support long-term currency stability. With the RBI enabling faster payments through Special Rupee Vostro Accounts for oil and other trades, Indian companies are benefitting from reduced conversion costs, lower trade-financing expenses, and fewer delays linked to SWIFT restrictions.
Sensex, Nifty Weekly Prediction ( December 8-12)
“Nifty ended the previous week on a flat note, but Friday’s sharp resurgence reaffirms strength in the prevailing uptrend. The market structure remains bullish, favouring a buy-on-dips approach for a constructive medium-term outlook,” said Dr. Ravi Singh, Chief Research Officer from Master Capital Services Ltd.
He added that the daily RSI at 63 reflects healthy buying momentum, while the MACD staying in positive territory continues to support trend strength. He noted that resistance is placed at 26,350, and a decisive breakout above this level could propel the index towards 26,600.
On the downside, immediate support lies within the 25,900-26,000 zone, which coincides with the 21-day EMA, while deeper support is situated near 25,600, close to the 55-day EMA. “A decisive breakout above 26,350 could push Nifty toward 26,600. Downside remains limited as long as the index holds the 25,900-26,000 zone,” Singh explained.
Bank Nifty Outlook Next Week
Bank Nifty-which gained 0.82% last week-is expected to maintain its strength. The expert identified immediate support at 59,000, with a broader support band between 58,900 and 59,000. On the upside, resistance is positioned at the psychological 60,000 level.
“Price action is comfortably above the 55-day EMA, indicating sustained strength. A close above 60,000 could open the door to 60,600,” he stated, adding that the overall setup remains favourable for further gains in the sessions ahead.
Fed Rate Cut Decision in Focus: Fed Week on Wall Street
Markets globally are bracing for a critical Federal Open Market Committee (FOMC) decision this Wednesday. The Fed is widely expected to deliver another 25-basis-point rate cut, continuing its dovish shift amid economic and political pressures.
Washington, however, is already shifting focus beyond Fed Chair Jerome Powell-even though he still has three FOMC meetings left in 2026. It will be closely watched for insights on inflation trends, labour market signals and the rationale behind the rate decision.