SGX Nifty December 2025 futures rose by 19.50 points, suggesting a slightly optimistic start for the Nifty 50 today.
Institutional Flows:
On 8 December 2025, provisional data indicated that foreign portfolio investors (FPIs) divested shares amounting to Rs 655.59 crore, whereas domestic institutional investors (DIIs) emerged as net buyers with an investment of Rs 2,542.49 crore in the Indian equity market.
In December, foreign institutional investors have divested shares totaling Rs 10,156.86 crore to date. This follows their cash sales of Rs 17,500.31 crore in November and Rs 2,346.89 crore in October.
Global Markets:
Asian shares fluctuated between slight gains and losses on Tuesday as traders in the region exercised caution ahead of the Federal Reserve’s policy decision. A quarter-point rate cut is anticipated, yet the true intrigue centers on the Fed’s indications regarding the state of the world’s largest economy.
Chinese markets exhibited a sideways movement as investors analyzed the recent commitments of fiscal support from the Politburo, which convened on Monday. Reports indicated that Beijing plans to increase government spending while aiming to uphold its 5% GDP growth target for 2026. The policy comfort was moderated by ongoing concerns regarding a challenging property downturn, subdued consumer demand, and a significant deceleration in capital investment, resulting in a restrained sentiment.
Chip stocks throughout Asia remained relatively stable following U.S. President Donald Trump’s announcement that NVIDIA would be allowed to sell a more advanced AI chip in China, albeit with a 25% tariff applied to the product. The response from Chinese chipmakers varied significantly.
Overnight in the U.S., equities experienced a decline as investors opted to secure profits ahead of the Fed meeting. The S&P 500 declined by approximately 0.4%, closing at 6,846.51. The NASDAQ Composite saw a slight decrease of 0.1%, ending at 23,545.90, while the Dow Jones Industrial Average experienced a drop of nearly 0.5%, finishing at 47,739.32. NVIDIA experienced an increase of approximately 2.2% in after-hours trading, building on its gains from the main session after Trump’s remarks regarding China chip sales.
Domestic Market:
The domestic stock market exhibited a risk-averse sentiment on Monday, as investors offloaded midcap and blue-chip stocks, resulting in the Nifty retreating below the 26,000 mark. Foreign funds increased their selling activity in anticipation of the US Federal Reserve meeting, the rupee remained close to record lows, and every NSE sectoral index closed in the red, with PSU banks experiencing the most significant decline. Increasing Japanese bond yields have unsettled traders, heightening the risk of yen carry trades unwinding, a development that could drain global liquidity. Despite India’s stable macroeconomic environment, these opposing forces maintained a subdued sentiment. The Sensex declined by 609.68 points, settling at 85,102.69, while the Nifty decreased by 225.90 points to reach 25,960.55, marking a consecutive decline for both indices.