December 12, 2025 (Navroze Bureau) ; Indian equity markets are set for an eventful trading session on December 12, with the Nifty50 and Sensex expected to open on a positive note, supported by firm global cues and renewed optimism after the U.S. Federal Reserve’s latest policy stance. Positive sentiment in global markets, domestic institutional buying, and easing macroeconomic uncertainties are likely to guide early trade today. However, persistent foreign investor outflows and volatility in certain sectors may temper the pace of gains as the session progresses.
Global cues remain one of the strongest driving forces shaping the Indian market outlook today. Wall Street closed higher in its previous session, with major indices such as the Dow Jones, Nasdaq, and S&P 500 extending gains following the U.S. Federal Reserve’s decision to cut interest rates and signal a more accommodative policy stance for the coming quarters. Investors worldwide responded positively to the central bank’s reassurance of economic stability and controlled inflation, leading to a rally in equities and commodities.
Asian markets mirrored this optimism, with key indices opening higher in early trade. The upbeat sentiment across regional markets is expected to spill over into Indian equities, providing a solid foundation for a stronger start on Dalal Street. Futures trends also indicate a gap-up opening for the Nifty50, with technical indicators pointing toward bullish momentum.
Domestically, the previous session saw the Indian benchmarks bounce back after a series of subdued trading days. The Nifty50 reclaimed the 26,000 mark for the first time in recent sessions, while the Sensex gained over 350 points as investor confidence returned to frontline indices. Analysts believe the market’s ability to hold above key support levels signals resilience and suggests that dip-buying may continue.
However, foreign institutional investor (FII) activity continues to be a major concern. FIIs have been net sellers for several consecutive sessions, pulling funds out of Indian equities amid broader global risk adjustments and shifting asset preferences. Their selling pressure has been concentrated in financials, IT, and FMCG stocks, which has kept the market from gaining stronger traction despite supportive global cues.
In contrast, domestic institutional investors (DIIs) have remained consistent buyers, helping counterbalance FII outflows. Strong domestic economic fundamentals, rising retail participation, robust SIP inflows, and confidence in India’s long-term growth trajectory have all contributed to sustained DII support. This dynamic between FIIs and DIIs is shaping the short-term market direction and will continue to be an important factor today.
From a technical standpoint, traders are watching key levels closely. The Nifty50 faces immediate resistance near the 26,050–26,100 zone, while support levels lie around 25,850–25,900. A breach above resistance could open the door for higher moves, while dropping below key support could introduce volatility. For the Sensex, resistance is seen around 86,500, with support near 85,700. Market watchers expect the first hour of trade to be driven largely by global cues, with domestic flow patterns influencing later movements.
Sector-wise, banking and IT stocks are expected to be in focus today. Banking shares may see renewed interest following the Fed’s rate decision, which has improved global liquidity sentiment. The IT sector, which typically benefits from a stronger U.S. market outlook, may also witness buying activity. Auto and metal stocks could remain range-bound due to mixed signals from global commodity markets. Energy and infrastructure sectors may see stock-specific movements based on ongoing developments and policy expectations.
Investors will also be eyeing upcoming macroeconomic data, including inflation figures and industrial output numbers, which could influence market sentiment later in the week. Additionally, global crude oil prices and currency movement will play a role in shaping the market narrative today. A stable rupee and easing crude prices would be positive triggers for Indian equities.
Market experts suggest that while global cues are supportive, the combination of FII outflows and cautious earnings outlooks may lead to intraday volatility. Traders are advised to focus on quality stocks and avoid aggressive positions until clearer market direction emerges. Long-term investors, however, continue to be optimistic, with India’s economic outlook remaining strong and domestic consumption trends supportive of continued corporate earnings growth.
As trading begins today, the market mood appears cautiously optimistic. Strong global cues may help indices open higher, but sustained upward movement will depend on how FIIs position themselves and whether domestic buyers continue to provide adequate support. With several critical triggers ahead, December 12 is likely to be a session marked by both opportunity and unpredictability.
Summary
Nifty50 and Sensex are expected to open higher on December 12, driven by strong global cues and domestic buying, though persistent FII outflows and sector-specific volatility may influence overall market movement.