Indian Stock Market Trends: Sensex & Nifty Insights for December 29
Sensex teeters at 85K, Nifty dips to 26,042—yet RBI’s shock 5.25% cut hides a GDP bomb at 8.2%! Titan rockets 2.17% as FIIs dump ₹24K Cr… but DIIs strike back. Will Bank Nifty explode to 60K or crash? 5 hidden stocks could 2X your portfolio—don’t miss this twist!
As Indian markets kick off the final trading week of 2025 on December 29 amid year-end consolidation, benchmark indices like BSE Sensex and NSE Nifty 50 show resilience despite recent dips, buoyed by robust GDP growth and easing CPI inflation. Investors eye RBI’s steady repo rate at 5.25% post-December cut, while Nifty Bank trends hint at short-term dips before potential rebounds, blending caution with optimism for 2026 bluechip stock picks.
Indian Market Overview
BSE Sensex closed at 85,041 points on December 26, down 0.43% from the prior session, reflecting consolidation with a monthly decline of 0.79% yet up 8.06% year-over-year amid lower volumes in tech and banking drags. NSE Nifty 50 settled at 26,042, off 0.38% or 99.80 points, with supports at 26,000 and 25,850 holding firm as broader sentiment remains bullish despite FII outflows of ₹23,830 crore in December offset by DII buys exceeding ₹62,000 crore.
Bank Nifty hovered around 59,011, down 0.29%, testing supports at 58,300-58,600 near its 50-day EMA, with analysts forecasting a base formation up to 60,100 before eyeing 61,000 on a 59,800 breakout. Investor sentiment tilts positive on compressed India VIX, signaling option-writing opportunities, though global cues like US tariffs loom; domestic resilience shines through advances in metals and consumer stocks like Titan up 2.17%.
Key Economic Drivers
India’s GDP grew 8.2% year-on-year in Q3 2025, surpassing 7.3% estimates, driven by government spending and GST cuts amid US tariff resilience, with full-year FY25 at 6.5% and projections holding at 7.5% end-FY26. CPI inflation eased to 0.71% in November from October’s 0.25%, below RBI’s 2-6% band for three months on falling food prices (-3.91%), enabling the MPC’s fourth rate cut.
RBI slashed repo to 5.25% on December 5, adopting a neutral stance amid 3.7% FY26 inflation outlook and 6.5% growth forecast, easing loan costs while monitoring global risks. Unemployment dipped to 4.9% per PLFS 2024-25, with rural at 4.2% and urban 6.7%, bolstering consumer confidence and linking to market upticks in discretionary sectors despite skill gaps.
NIFTY Today
GIFT Nifty futures trade at 26,121, down 0.18%, signaling a flat-to-weak open on December 29 after Nifty's 26,042 close, with key resistance at 26,450 and supports at 26,000. Expect consolidation in 25,700-26,300 absent a breakout, as heavyweight drags like HDFC Bank (-0.52%) and ICICI Bank weigh, countered by gains in Titan and Hindalco.
Latest News Highlights
Latest News Highlights for Indian Stock Market (December 29, 2025):
- GIFT Nifty Signals Muted Open: GIFT Nifty futures trade up 0.08% at around 26,121, hinting at a flat-to-weak start for Sensex and Nifty after Friday's close at 85,041 (-0.43%) and 26,042 (-0.38%), amid year-end caution and low volumes.
- FIIs Continue Selling, DIIs Counter with Buys: FIIs net sold ₹24,148 crore in December so far (latest Dec 26: -₹318 Cr), while DIIs net bought ₹64,057 crore (Dec 26: +₹1,773 Cr), providing support amid holiday-thinned trading.
- RBI Repo Rate Cut Echoes Persist: Post-December 5 MPC's 25 bps slash to 5.25% with neutral stance, Governor Malhotra notes benign inflation (core 3-3.5%) and minimal US tariff impact, boosting rate-sensitive sectors like banking despite transmission focus.
- Corporate Updates in Focus: Mazagon Dock eyes ₹5 Bn govt shipbuilding investment; Akums Drugs sees finance head resignation over Delhi pollution; Pfizer faces ₹8.8 Cr tax demand; Dilip Buildcon bags infra projects; NBCC announces major orders.
- Sector-Specific Moves: Large banks raised record CDs in 2025; IT and auto drags (TCS -1.27%, Bajaj Fin -1.30%) led Friday's downside, countered by gains in Titan (+2.17%), Hindalco (+0.99%); rupee faces NDF pressure but RBI liquidity steady.
- Outlook and Brokerage Calls: Nifty range-bound 25,700-26,300 next week, eyes IIP data; MarketSmith bullish on SAIL (₹132) for infra/PSU push and Capital India Finance (₹38.50) for lending growth amid 'Confirmed Uptrend'.
List foreign indices movements that influenced Indian markets
Foreign indices showed mixed movements on December 29, 2025 (early Asian session and prior US close), influencing Indian markets through FII flows and risk sentiment amid year-end caution.
- Nikkei 225 (Japan): Down 0.55% to 50,472.60, dragged by profit booking in tech and exporters; weighed on Indian IT stocks like TCS amid global caution.
- Hang Seng (Hong Kong): Up 0.17% to 25,818.90, supported by China stimulus hopes; provided mild positive cue for Adani ports/infra plays.
- Shanghai Composite (China): Up 0.10% to 3,963.68, on steady economic data; bolstered metal/commodity stocks like Hindalco in India.
- Kospi (South Korea): Up 0.84% to 4,164.49, led by semiconductors; positive spillover for Indian tech amid AI tailwinds.
- S&P/ASX 200 (Australia): Flat to down 0.30% around 9,069; neutral impact on mining/RIL O2C linkages.
- Dow Jones Industrial Average (US): Down 0.04% to 48,710.97 (Friday close), with weekly +1%; limited drag as DIIs cushioned FII outflows in India.
- S&P 500 (US): Down 0.03% (slight decline), weekly +1.4%; supported broader EM sentiment despite tariff worries.
- Nasdaq Composite (US): Down 0.09% to 23,593.10; mixed tech cue pressured Nifty IT but holiday volumes thinned impact.
Performance Overview
Top 10 stocks to buy on NSE/BSE for 2025 blend growth and value: Reliance Industries leads on diversified O2C/Jio/Retail cash flows; TCS/Infosys for IT outsourcing; HDFC Bank on 10.34% ROE; plus HAL, BEL in defense on order wins. Rationale includes low PEG (<1 for many), yields 0.5-2%, sectors like renewables/defense triggered by PLI schemes.
Day's top gainers/losers from latest session (Dec 26 close basis, adjusted for Dec 29 pre-open cues):
Top 10 Gainers
| Rank | Top Gainers | % Change | Rationale |
| 1 | Titan | +2.17% | Strong festive demand, volume 11L shares |
| 2 | Hindalco | +0.99% | Metal rebound on global cues |
| 3 | Nestle | +0.82% | FMCG resilience |
| 4 | NTPC | +0.53% | Power sector stability |
| 5 | Cipla | +0.51% | Pharma export gains |
| 6 | Adani Ent | +0.37% | Infra triggers |
| 7 | ONGC | +0.37% | Oil steady |
| 8 | JSW Steel | +0.27% | Steel uptick |
| 9 | HUL | +0.25% | Consumer defensive |
| 10 | TMPV | +0.24% | Auto volume surge |
Top 10 Losers
| Rank | Top Losers | % Change | Rationale |
| 1 | TCS | -1.27% | IT profit booking |
| 2 | Bajaj Fin | -1.30% | NBFC caution post-RBI |
| 3 | Shriram Fin | -1.37% | Rate sensitivity |
| 4 | Asian Paints | -1.40% | Margin pressures |
| 5 | HDFC Life | -0.96% | Insurance dip |
| 6 | Powergrid | -0.97% | Utility selloff |
| 7 | Sun Pharma | -0.98% | Pharma volatility |
| 8 | Eternal | -1.05% | Sector rotation |
| 9 | Bajaj Auto | -1.12% | Auto correction |
| 10 | TechM | -1.16% | IT consolidation |
Sector Performance
IT leads 2025 with digital/AI tailwinds (TCS, Infosys), banking consolidates post-repo cut, pharma resilient on exports, consumer goods steady amid low inflation; freshest data shows IT +8-10% YTD, banking flat.
| Sector | YTD Return 2025 | Key Driver | Top Stock P/E | Earnings Note |
| IT | +9% | AI/Cloud | TCS 35x | Q3 beat |
| Banking | -0.5% | Repo cut | HDFC 20x | Loan growth 15% |
| Pharma | +5% | Exports | Cipla 28x | USFDA nods |
| Consumer | +3% | Festive | HUL 55x | Volume up 7% |
Analysis and Recommendations
Actionable insights favor diversified portfolios: Conservative (60% largecaps like Reliance/HDFC Bank, 20% debt, 20% gold) pros: stability (8-10% returns), cons: misses growth; Moderate (40% IT/Pharma, 30% banking, 30% consumer) leverages GDP/inflation trends; Aggressive (defense like HAL/BEL, renewables) targets 15-20% on PLI/orders, risks volatility.
Sample moderate portfolio: 25% Reliance (P/E 25, yield 0.5%, Q3 EBITDA +10%), 20% TCS (PEG 1.2, IT recovery), 15% HDFC Bank (ROE 16%), 15% Cipla, 10% NTPC, 15% gold ETF. Recent earnings: Reliance Jio adds 15M subs, TCS deals $10B.
Stock Recommendations for Today (December 29, 2025)
Here are curated stock picks for intraday and short-term trading on NSE/BSE, drawn from brokerage calls, technical breakouts, and market momentum amid a flat open (GIFT Nifty +0.08%). Focus on dips near supports with tight stops; year-end volumes remain thin.
Intraday Buys (High Momentum Picks)
- Choice International (₹822.50): Buy for target ₹860 (4.5% upside); bullish short-term outlook on chart surge ~10%, strong volume breakout. Stop loss: ₹800.
- NMDC (₹80+): Buy on momentum; targets ₹85-₹90. PSU infra push, stop loss ₹79. Strong above ₹85 for extended rally.
- BEL (₹420+): Buy for ₹440 (mid-term ₹520); robust fundamentals in defense orders. Stop loss ₹410; breakout potential post-consolidation.
- Suzlon Energy (₹55+): Buy above resistance ₹55-56; targets ₹61-62 on renewable tailwinds. Stop loss ₹53.
- MMTC: Top breakout pick; buy on pullbacks for quick gains. Strong momentum per experts, paired with Hardwyn India/Sagility.
Stocks to Watch (News-Driven/Event Plays)
- Coforge: In focus post-earnings/MA buzz; watch for gap-up above ₹7,200. Potential 5-7% move on midcap recovery.
- Titan: Accumulate dips near ₹3,800; target ₹4,500 on festive/jewelry breakout from 2-year base. Stop loss ₹3,800.
- IRFC: Buy above ₹129; targets ₹145 on 10% Friday surge, railway capex. Stop loss ₹125.
- IRCON: Bullish above ₹172; target ₹190. Falling channel breakout, infra orders. Stop loss ₹170.
- BHEL: Buy ₹282-283; target ₹298 on PSU budget momentum. Stop loss ₹277.
Trading Strategy Tips
- Nifty View: Buy dips to 25,950 (targets 26,100-26,160); stop 25,820. Protect 26,000 key support.
- Bank Nifty: Long above 59,100 (targets 59,300-59,450); stop 58,650. Consolidating near 58,800 support.
- Risk Note: Holiday-thinned liquidity; trail stops on winners, avoid over-leverage amid FII selling. Not financial advice—DYOR.
Final Thought
Indian stock market trends on December 29, 2025, paint a resilient picture amid year-end consolidation. BSE Sensex holds near 85,041 and NSE Nifty 50 at 26,042, buoyed by 8.2% Q3 GDP growth, CPI inflation at a benign 0.71%, and RBI's repo rate cut to 5.25% fostering banking recovery. Nifty Bank trends stabilize around 59,011, with DII buys of ₹64,057 crore offsetting FII outflows, signaling strong domestic support.
Top performers like Titan (+2.17%) and Hindalco shine in consumer and metals, while IT faces profit booking. Foreign indices mixed—Nikkei down 0.55%, Hang Seng up 0.17%—limit downside. Recommendations favor intraday buys in BEL, Suzlon, and NMDC on breakouts, with positional picks like Coforge and Titan for 2026 upside.
Unique insight: Low VIX and RBI dovishness position Dalal Street for a Nifty 27,000 breakout in Q1 2026. Stay diversified, buy dips—share your top 2025 winner below!
Disclaimer: This analysis on Indian stock market trends is for educational and informational purposes only and does not constitute financial, investment, legal, tax, or accounting advice. Markets are volatile; past performance isn't indicative of future results. Consult a qualified financial advisor before making investment decisions.
