SGX Nifty December 2025 futures increased by 10.50 points, suggesting a subdued start for the Nifty 50 today. The NSE has implemented significant changes to its F&O trading framework effective Monday, 8 December 2025, by launching a pre-open session for equity derivatives. From 9 a.m. to 9:15 a.m., participants can engage in call auctions, akin to the pre-market mechanism currently employed in the cash segment.
Institutional Flows:
On 5 December 2025, provisional data indicated that foreign portfolio investors (FPIs) divested shares amounting to Rs 438.90 crore, whereas domestic institutional investors (DIIs) recorded net purchases totalling Rs 4,189.17 crore in the Indian equity market.
Foreign Institutional Investors have divested shares amounting to Rs 10123.23 crore thus far in December. Their cash sales amounted to Rs 17,500.31 crore in November and Rs 2,346.89 crore in October.
Global Markets:
Asia’s equity indices commenced the week with mixed performance as traders prepared for the upcoming trade figures from China, which may provide insights into the state of global demand. Focus has shifted to Washington, where the Federal Reserve is scheduled to convene this week, and expectations are high for an additional interest rate cut. As inflation shows signs of easing and growth indicators become inconsistent, investors are anticipating that the Fed will maintain its monetary support. Recent updates from Tokyo introduced a sense of pessimism at the start of the week. Japan’s economy contracted more than previously indicated in the July to September quarter, with official figures revealing an annualised GDP decline of 2.3%. The decrease was more pronounced than the previous estimate of 1.8% and the anticipated 2.0% reduction by economists, highlighting the difficulties confronting Asia’s second-largest economy.
Wall Street, however, concluded last Friday on a more optimistic note. All three major indices closed higher as markets analysed a series of U.S. data releases. The S&P 500 recorded its fourth consecutive increase, rising 0.19% to 6,870.40 and approaching approximately 0.7% of its intraday high. The Nasdaq Composite increased by 0.31%, reaching 23,578.13, whereas the Dow Jones Industrial Average gained 104.05 points, equivalent to 0.22%, closing at 47,954.99.
The recent Personal Consumption Expenditures Price Index reading for September has further fuelled expectations for a rate cut, aligning with the Federal Reserve’s preferred measure of inflation. Core PCE increased by 0.2% month-over-month and 2.8% year-over-year, falling short of analysts’ expectations. The combination of indications pointing to a weakening labour market and more cautious consumer behaviour has bolstered expectations that the Federal Reserve is poised to enhance its policy support measures.
Domestic Market:
The primary equity indices concluded the trading session on Friday, 5 December 2025, with notable gains, marking a continuation of their upward trajectory for the second consecutive day. Sentiment showed an uptick following the Reserve Bank of India’s decision to reduce the repo rate by 25 basis points to 5.25%. The Nifty demonstrated a resurgence, closing above 26,150 after recovering from an intraday low of 25,985.35, driven primarily by gains in banks and financial services stocks. Market participants monitored the upcoming US PCE inflation data on Friday, which serves as a crucial metric for influencing the policy direction of the US Federal Reserve.
The S&P BSE Sensex increased by 447.05 points, reflecting a rise of 0.52%, reaching a total of 85,712.37. The Nifty 50 index increased by 152.70 points, reflecting a rise of 0.59%, bringing it to a total of 26,186.45. Over the last two trading sessions, the Nifty and Sensex experienced declines of 0.77% and 0.71%, respectively.