December 11, 2025 (Navroze Bureau) ; Indian equities opened on a cautious note Thursday as investors absorbed cues from the US Federal Reserve’s interest rate decision, persistent foreign selling pressure and fresh IPO market developments. After a three-session slide, benchmark indices saw mixed action, with broader sentiment pivoting around macro cues, sector rotation and individual stock opportunities.
Nifty 50 Trade Setup and Technical Landscape
The Nifty 50 benchmark traded around the 25,750–25,900 zone, with volatility gripping the market as short-term momentum indicators showed mixed signals. Analysts say the 25,700 level remains crucial support, while resistance near the 25,900–26,000 zone will determine the near-term direction. A sustained close above the resistance could reignite bullish sentiment, whereas weakness below support may expose Nifty to further downside.
Futures contracts for Nifty also reflected this uncertainty, with the December series ending at a premium, indicating continued interest from derivative traders in the near-term outcome.
Domestic market volatility was visible as profit-booking weighed on key stocks, especially ahead of major global policy cues and seasonal year-end positioning by portfolio managers.
US Federal Reserve Outcome and Its Impact
A major catalyst for global markets this morning was the US Federal Reserve’s monetary policy decision, where the central bank delivered a 25 basis point rate cut, taking the federal funds rate to 3.50–3.75%. This marked the third consecutive cut in 2025 and reaffirmed the Fed’s data-dependent approach amid easing inflation pressures and slower job growth.
The rate decision had a dual impact on Indian markets:
- Positive sentiment on risk assets: The cut bolstered global equity markets and reduced borrowing costs, improving the outlook for emerging markets like India. Local stock indices briefly rallied post-announcement, with Sensex up over 50 points and Nifty above 25,750 in early trade.
- Caution on global liquidity: Despite the rate cut, the Fed signalled a slower pace of future cuts, prompting caution among global investors and continued foreign institutional selling in Indian equities.
Overall, the interplay between US monetary policy and domestic macro conditions will continue to influence Dalal Street in the near term.
Global Market Cues and Sector Performance
Wall Street’s reaction to the Fed’s move was mixed, with major US indices rallying earlier but some late weakness indicating uncertainties amid earnings and rate expectations. Asian markets followed risk-on sentiment, while currency markets saw the rupee remain under pressure against the US dollar.
Sectorally in India, banks, metals and tech stocks attracted buying interest, while defensive plays like consumer goods lagged. Macro drivers such as crude prices, rupee movement and inflation data will shape sector rotation trends.
IPO Market Action and Broader Sentiment
IPO activity remains a key theme for market participants. Recent blockbuster listings and oversubscription trends have drawn fresh retail and institutional interest. While specific IPO names were mixed in performance, analysts say strong secondary market listings and pre-IPO corner deals reflect healthy appetite for new issues.
In the broader primary market, rights issues and QIP flows provided alternate avenues for capital allocation, and brokers suggest that long-term investors consider high-quality stocks emerging from IPO pipelines.
Stocks to Buy or Sell — Eight Names in Focus
Here are eight stocks that investors may watch today, based on technical setups, fundamental cues and recent market action:
Potential Buys:
- Kansai Nerolac Paints — Showing relative strength after recent weakness; consumer cyclical play with decent valuation.
- United Breweries — Brewing sector stock gaining momentum on seasonal demand prospects.
- Embassy Developments — Real estate stock showing improvement on sector rotation and housing demand play.
- Hindustan Zinc — Metals sector beneficiary amid firm metal prices and risk asset support.
Triggers for Caution or Sell:
- IndiGo — Airline stock under pressure after capacity cut and downgrades in forecasts.
- ITC — Consumer goods stock seeing sector lag relative to banks and metals.
- Eternal/Quick Commerce Plays — Stocks with heavy corrections may either offer dip entry or continued risk if volumes remain weak.
- Mid/Smallcap Indices — Broad indices showing relative weakness compared to large caps; caution advised amid mixed breadth.
Note: This list reflects market signals, recent price action and sectoral trends rather than specific investment advice.
Outlook & Expert Views
Market watchers expect volatility to persist through the remainder of the week as traders digest global rate expectations, foreign fund flows, currency fluctuations and domestic earnings momentum.
Institutional flows — particularly equity mutual fund inflows, which rebounded strongly in November — suggest underlying long-term confidence in Indian equities.
Estimates from brokerages also present a bullish long-term outlook for the Nifty 50, with some projecting double-digit gains over the next 12 months on earnings growth and macro resilience.
Short-term traders, however, remain cautious amid profit-booking, with key technical levels dictating entry and exit points.
Summary
Nifty trade setup remains mixed as India markets react to the US Fed’s rate cut. IPO activity gains interest, while eight stocks — including Kansai Nerolac and IndiGo