Equities End Lower for Fourth Straight Session as Caution Prevails

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

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By Dehuti Jani

December 18, 2025 at 11:36 AM IST

Indian equities benchmark indices ended Thursday’s session on a subdued note, with gains in information technology stocks offset by losses in select auto, metal and pharmaceutical names. The markets struggled for direction amid the absence of fresh domestic triggers, while investors stayed cautious ahead of key US inflation data that could shape expectations around the Federal Reserve’s policy path.

The Nifty50 eased marginally by 0.01% to close at 25,815.55, while the BSE Sensex slipped 0.09% to 84,481.81. With this, the Sensex closed in the red for the fourth consecutive session, shedding around 785 points over the period. The Nifty also retreated from its day’s high of 25,902 to settle marginally lower. Eleven of the 16 sectoral indices ended in the red, though broader markets showed mild resilience, with mid-caps and small caps gaining 0.3% and 0.1%, respectively. and Infosys, both up around 1.7%. Adani Ports, HCL Technologies and Axis Bank also posted gains. On the downside, Sun Pharmaceutical dropped 2.7% after the USFDA classified the inspection outcome at its Baska facility as Official Action Indicated. Tata Steel, Power Grid, Asian Paints, Larsen & Toubro and NTPC were among the other notable laggards.

Top Movers of the Day
AMC and wealth management stocks rallied sharply after SEBI’s final expense ratio framework turned out to be less punitive than feared. Nippon Life India AMC surged up to 7%, HDFC AMC gained about 5%, while UTI AMC and Aditya Birla Sun Life AMC advanced 3–4%, as lower TER cuts and GST exclusion eased margin concerns.

Hero MotoCorp fell over 5% after Jefferies downgraded the stock, flagging a potential 14% downside.

MTAR Technologies rose after securing a ₹3.1 billion order from Megha Engineering & Infrastructures for supplying critical equipment for Kaiga nuclear reactors 5 and 6.

TCS gained about 1.8% after expanding its long-term partnership with Aviva, covering over 6.5 million insurance policies.

MCX shares rose about 2% after fixing 2 January 2026 as the record date for its approved equity share split.

IndiGo climbed over 2% after CEO Pieter Elbers told employees that operational stress had peaked.

KPI Green Energy gained around 4% on a landmark renewable energy deal in Botswana.

HBL Engineering jumped over 8% following a positive business update, while HRS Aluglaze debuted on the BSE SME platform at a 31% premium.

Patel Engineering advanced nearly 4% after winning a ₹17.0 billion hydropower restoration project in Arunachal Pradesh.

Meesho shares eased after a sharp rally that had more than doubled the stock from its IPO price within seven sessions.

Futures & Options
Nifty December 2025 futures closed at 25,882.20, a 66.65-point premium to the Nifty’s cash close of 25,815.55, while the Nifty 50 in the cash market slipped 3 points or 0.01%. Volatility remained subdued, with India VIX easing 1.32% to 9.71. HDFC Bank, Infosys and InterGlobe Aviation (IndiGo) were the most actively traded stock futures, with December contracts set to expire on 30 December 2025.

Bonds
Indian government bond yields traded in a narrow range on Thursday amid light volumes. The benchmark 10-year yield ended at 6.5738%, easing from 6.5995% on Wednesday, reflecting steady demand ahead of the liquidity operation. The RBI conducted an open market operation to buy ₹500 billion of government securities across maturities from 2029 to 2054, including the former benchmark 6.33% 2035 paper, whose yield hovered around 6.61%. The auction was well received, with strong acceptance seen in the 6.54% GS 2032, helping stabilise yields and reinforcing expectations of continued liquidity support from the central bank.

Forex
The rupee extended its recovery on Thursday, closing 0.1% higher at 90.24 per dollar after rebounding from a record low in the previous session, aided by Reserve Bank of India intervention and a rise in merchant dollar sales. Analysts at SBI Research noted that while the rupee remains in a depreciation phase driven by geopolitics, tariffs and capital outflows, statistical indicators suggest the move may be closer to exhaustion, opening the door for a potential rebound in the second half of the next fiscal year, even as near-term volatility stays elevated.

Crypto
Crypto markets moved against expectations, with price action diverging across major tokens amid tight financial conditions. Bitcoin held just above $86,000, showing relative resilience, while Ethereum slipped below $2,900 after a sharp pullback over the past 24 hours. In contrast, XRP stood out as ETF-linked demand remained firm, with XRP ETFs recording $18.99 million in net inflows, taking total assets above the $1 billion mark.

US Stock Futures
US stock futures traded mostly higher on Thursday, led by gains in the Nasdaq 100, while Dow Jones futures hovered near flat as investors awaited the November CPI inflation data due later in the day. Tech stocks outperformed after Micron Technology delivered an upbeat outlook, with the chipmaker forecasting second-quarter profit and revenue nearly double Wall Street estimates. Micron shares jumped over 9% in premarket trade, helping ease recent concerns around AI spending.

US Treasury Notes
US Treasury yields fell today, as investors turned cautious ahead of the release of November CPI inflation data. Modest safe-haven demand lifted bond prices, pushing the benchmark 10-year yield down about 2 basis points to around 4.14%, while the 2-year yield eased to roughly 3.46%. Markets are awaiting the inflation print for clearer signals on the Federal Reserve’s future rate path, keeping positioning light across the curve.

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