India’s markets began the week on a cautious note as volatility intensified across indices, aviation stocks saw heavy action, and the RBI’s policy shift shaped sectoral expectations. The interplay of global cues, domestic macro numbers, and company-specific triggers led to sharp moves across large caps, midcaps, and newly-listed firms.
- Sensex & Nifty
- Both benchmarks slipped nearly 1%, dragged by a broad-based selloff.
- The Nifty once again fell below 26,000, breaking its two-day recovery.
- Sensex ended 610 points lower, reflecting weak global sentiment and aviation-led pressure.
- Key Technical Levels
- Support: 25,892 (Monday’s low) ➝ If broken, downside may accelerate toward 25,800.
- Resistance: 26,100–26,200 zone.
- Smallcap & Midcap Pressure
- Mid and smallcap pockets faced sharp profit-booking, sliding up to 12%.
- Nifty Smallcap100 posted its fifth straight daily decline.
- Names like Kaynes Tech and Bharat Dynamics were top casualties.
- Morning Sentiment Check
- GIFT Nifty pointed to a weak start.
- Investors remained cautious ahead of the Federal Reserve’s FOMC decision.
- FIIs (Foreign Institutional Investors)
- Sold equities worth ₹655–₹656 crore on December 8.
- YTD: Net sellers of ₹2.68 lakh crore.
- DIIs (Domestic Institutional Investors)
- Bought equities worth ₹2,542–₹2,549 crore, strongly absorbing FII pressure.
- YTD: Net buyers of ₹7.27 lakh crore.
Domestic liquidity continues to anchor the market despite global uncertainty.
The Reserve Bank of India delivered a surprise but market-friendly update.
- Repo Rate Cut
- Reduced by 25 bps to 5.25% citing stable inflation and resilient growth.
- Positive for:
- Banks
- NBFCs
- Autos
- Real estate
- Growth & Inflation Outlook
- FY26 GDP forecast raised to 7.3%.
- Inflation estimates trimmed, improving earnings visibility.
- Bond Market Boost
- RBI announced ₹1 lakh crore OMOs + $5 billion USD swap, easing liquidity constraints.
Analysts are calling this a “Goldilocks moment” where growth accelerates, inflation moderates, and liquidity improves.
India’s largest airline continues to face operational stress, dragging aviation stocks and affecting market sentiment.
- IndiGo – Key Developments
- Over 800 flights cancelled on Saturday alone.
- DGCA issued a show-cause notice to CEO Pieter Elbers.
- Government launched a 15-day high-level probe.
- Winter schedule expected to be cut.
- Airline denied pilot shortage but admitted to “systemic lapses.”
- Refund backlog being processed; passengers reported severe disruptions.
- Viral incidents:
- Groom missing his own wedding.
- Newlyweds joining reception via video call due to delays.
- Market Impact
- IndiGo stock fell up to 9% intraday.
- Aviation sector remains in focus due to:
- Crew-management lapses
- Regulatory scrutiny
- Demand-supply imbalance in holiday season
- Competitors React
- SpiceJet
- Gained up to 14% as disruptions shifted bookings toward alternatives.
- Wet leasing allowed it to avoid FDTL-related disruptions.
- Expanded capacity to accommodate stranded passengers.
- Air India & Air India Express
- Capped economy fares to ease passenger burden.
- CEO urged staff to assist travellers amid crowding at terminals.
- Top Gainers & Losers
- SpiceJet: +14%
- Kaynes Tech: –12% (₹10,000 crore market cap eroded in 3 days)
- Biocon: –3%
- Lenskart: –3% (lock-in expiry pressure)
- Multibagger & Emerging Stocks
- Suzlon Energy
- ICICI Securities reaffirmed “Buy” with a ₹76 target, citing strong renewable demand.
- Bajaj Finance
- Analysts recommend “Hold”, with a target of ₹1,050.
- Promoter & Institutional Moves
- Welspun Enterprises
- Promoter raised stake by 0.5%.
- Positive investor sentiment continues.
- Dredging Corporation
- Invesco MF bought 0.89% stake, adding institutional strength.
- Pharma & Healthcare
- Biocon
- Picked 4 bankers for a ₹4,500 crore capital raise.
- Concerns persist due to dilution risks after Biocon Biologics buyout.
- Dr Reddy’s Laboratories
- Signed licensing agreement for Immutep’s cancer drug.
- Potential milestone payouts: $349.5 million.
- Corona Remedies
- Active GMP momentum ahead of IPO.
- IT, Consumer & Retail
- PhysicsWallah Q2
- Net profit: +70% YoY
- Revenue: +26% YoY
- Strong traction across edtech verticals.
- Lenskart
- Pressure after end of one-month lock-in for early investors.
- Manufacturing & Industry
- Ceat Tyres
- Strengthening global play; export contribution at 20% and rising.
- Welspun Corp & Power Stocks
- Remain in focus amid strong order flows and promoter activity.
- Energy & Power
- Torrent Power & JERA
- Signed India’s first long-term LNG export deal with Japan’s JERA.
- Strategic move to secure long-term gas supply.
- Media & Entertainment
- Paramount
- Announced a $108.4 billion hostile bid for Warner Bros Discovery.
- Could realign global media valuations including Indian broadcasters.
- Luxury Time IPO
- Subscribed 554x, bids worth ₹7,573 crore.
- Listing scheduled on December 11 (BSE SME).
- Meesho, Aequs, Wakefit
- All in active allotment news cycle; strong retail interest continues.
- Biocon Capital Raise
- ₹4,500 crore plan; roadshows to begin shortly.
Investor appetite remains high despite market volatility.
- TasteAtlas Rankings
- Mumbai ranked 5th best food city in the world — boosting sentiment around hospitality and FMCG stocks.
- Advertising Outlook
- India projected among fastest-growing ad markets in 2026, supporting:
- Media
- OTT platforms
- FMCG
- E-commerce
- Tech Sentiment
- Nvidia CEO Jensen Huang highlighted growing anxiety despite success — reflecting ongoing caution in global tech valuations.
Despite the sharp decline in indices and pressure in midcaps, the market continues to find stability from strong DII flows and RBI’s supportive stance. Aviation stocks will remain at the center of attention as IndiGo works to restore normalcy, while sectors like banks, power, exports, FMCG, and media stand to benefit from macro tailwinds.
The next major trigger for the market will be the US FOMC policy decision, which could shape global risk appetite for the rest of the month.
Published by Barawakar |Market Pulse – 09 Dec 2025
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