Indian stock market: As we enter into the final month of 2025, the stock market investors remain optimistic that the momentum will continue through the month, supported by December’s typically favourable seasonal trends.
On Friday, the Indian stock market finished largely unchanged, as traders booked profits at higher levels and remained cautious ahead of the Q2 GDP numbers. Mixed signals from global markets also failed to lift sentiment.
The Sensex ended 14 points lower at 85,706.67, a dip of 0.02%, while the Nifty 50 closed at 26,202.95, down 13 points or 0.05%. The BSE Midcap and Smallcap indices also edged down by 0.04% and 0.13%, respectively.
Stock market performance in December in last 10 years
According to data available, Nifty 50 has given positive returns in six out of ten years and has gained more than 1.6%. The 50-stock index ended in positive territory in 2015, 2017, 2019, 2020, 2021 and 2023, while it finished lower in 2016, 2018, 2022 and 2024, posting declines of 0.47%, 0.13%, 3.48% and 2.02%, respectively.
The most powerful December rally occurred in 2023, when the Nifty climbed 7.94%, with 2020 close behind, posting a 7.81% rise.
Meanwhile, Nifty Midcap has remained positive in 7 out of 10 years, giving an average return of 2.1%. On the other hand, Nifty Smallcap has given an average return of at least 2.8% in 8 out 10 years.
Sector-wise, IT, Metal, and Real Estate have typically delivered the strongest December gains, with average returns of 3.7%, 4.3%, and 3.9% respectively. In contrast, FMCG, Energy, Auto, Pharma, and Banking have generally recorded more moderate increases.
Stock market outlook in December 2025
According to Ponmudi R, CEO – Enrich Money, the week ahead is poised to be a pivotal one, as several key domestic and global triggers will determine whether equities can extend their winning streak and push into uncharted territory.
Technical Views
Sensex
Sensex is trading around the 85,700 zone, consolidating just below its lifetime high. This indicates short-term balance as the index searches for fresh directional strength.
“A decisive close above 86,000 can trigger the next leg of upside toward 86,700–88,000. On the downside, a break below 85,500 may lead to a mild corrective move toward 85,200–84,850. Despite near-term fluctuations, the broader structure of Sensex remains positive, and the medium-term outlook stays firmly constructive,” said R.
Nifty 50
Nifty 50 has spent the last two sessions consolidating just below its lifetime high zone, trading in a tight range between 26,150 and 26,300. This controlled consolidation indicates a market preparing for its next directional move.
“As long as the crucial support belt at 26,150–26,000 remains intact, the broader structure stays stable and bullish in nature. The index is currently in a price-discovery phase, and the direction for the coming week will largely depend on a decisive breakout from this range. Immediate resistance is firmly placed at 26,450–26,600, which remains the key upside trigger. Market positioning in derivatives continues to signal a clear bullish undertone,” R added.
Over the last two sessions, Bank Nifty has maintained a bullish-to-neutral structure, holding firmly above its earlier resistance trendline and key base near 59,500–59,600.
On the Bank Nifty outlook, R further said, “Friday’s candle formed a star-doji, signaling short-term indecision after a strong upmove. However, the previous resistance trendline has now clearly turned into trendline support, keeping the broader structure intact. A break below 59,500 could open the door toward 59,000–58,600. On the upside, if Bank Nifty sustains and consolidates above the 59,600–59,500 region, the rally can extend toward 60,000–61,000 and beyond in the coming week.”
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
