SGX Nifty December 2025 futures increased by 5 points, suggesting a subdued start for the Nifty 50 today. Market participants are closely monitoring the Reserve Bank of India’s Monetary Policy Committee decision, set to be announced this morning. Market participants are anticipating the upcoming US Personal Consumption Expenditure data set to be released on Friday, as it may have implications for Fed policy.
Institutional Flows:
On 4 December 2025, provisional data indicated that foreign portfolio investors (FPIs) divested shares amounting to Rs 1,944.19 crore, whereas domestic institutional investors (DIIs) recorded net purchases totaling Rs 3,661.05 crore in the Indian equity market.
Foreign Institutional Investors (FIIs) have divested shares totaling Rs 10,764.90 crore thus far in December. Their cash sales amounted to Rs 17,500.31 crore in November, compared to Rs 2,346.89 crore in October.
Global Markets:
Asian indices displayed a mixed performance on Friday, reflecting Wall Street’s mostly flat close as traders assessed the increasing anticipation of a Federal Reserve rate cut.
US equities closed mostly flat overnight, bolstered by strong expectations that the Fed will implement policy easing next week, as investors look forward to an important inflation report. The Dow Jones Industrial Average decreased by 0.07%, while the S&P 500 experienced an increase of 0.11%, and the NASDAQ Composite gained 0.22%. The likelihood of a 25-basis-point reduction at the Fed’s December 9-10 meeting has increased, with futures currently indicating approximately an 87% probability.
The recent labour data has contributed to the prevailing uncertainty. Weekly jobless claims experienced a significant decrease of 27,000, reaching a seasonally adjusted total of 191,000, marking the lowest level since September 2022. However, it is important to note that holiday-related distortions may have contributed to this decline. Earlier in the week, ADP reported a decline of 32,000 in private-sector payrolls, marking the most significant decrease in over two and a half years. Challenger, Gray & Christmas reported a significant decline in announced job cuts for November, while hiring plans continued to show a lack of vigor.
These indicators emerge in the context of an extraordinary 43-day government shutdown that delayed the Bureau of Labor Statistics’ official jobs report, which is now anticipated only following the Fed’s policy decision. In corporate news, Hewlett Packard Enterprise shares experienced a decline of 9% in after-hours trading following the company’s failure to meet fourth-quarter revenue expectations, reporting $9.68 billion compared to the consensus estimate of $9.94 billion.
Domestic Market:
Key equity indices recorded slight increases on Thursday, ending a four-day decline. Sentiment, however, remained delicate as the weak rupee, consistent FII outflows, and uncertainty surrounding the RBI’s policy decision kept investors on edge. The recent uptick in volatility can be attributed to the weekly derivatives expiry, coupled with robust crude prices that have heightened concerns regarding elevated import costs and inflationary pressures. Market participants closely observed Russian President Vladimir Putin’s visit to India on December 4 and 5. The Nifty maintained its position above 26,000, bolstered by robust performance in IT and FMCG sectors.
The S&P BSE Sensex increased by 158.51 points, reflecting a rise of 0.19%, closing at 85,265.32. The Nifty 50 index increased by 47.75 points, representing a 0.18% rise, closing at 26,033.75. Over the last four trading sessions, the Nifty and Sensex experienced declines of 0.88% and 0.72%, respectively.