Sensex and Nifty Trends
The benchmark Sensex opened flat, initially declining by 41.32 points, but later recovered to register a modest gain of 76.14 points, or 0.09%, closing at 84,635.79. This level remains approximately 1.8% below its 52-week high of 86,159.02, indicating some room for upside momentum. The index is currently trading above its 50-day moving average (DMA), which itself is positioned above the 200 DMA, signalling a generally positive technical setup for the near term.
The Nifty index mirrored this cautious optimism, with the broader market showing a divergence in sectoral performance. Large caps led the gains, while mid and small caps struggled to maintain momentum.
Sectoral Performance: IT Leads, Auto Lags
Out of 38 sectors tracked, 15 advanced while 23 declined, underscoring a market grappling with selective buying interest. The NIFTY IT sector emerged as the top gainer, rising by 0.66%, supported by robust buying in technology-related stocks. Conversely, the NIFTY Auto sector faced selling pressure, falling by 1.09%, weighed down by concerns over demand and input cost pressures.
This sectoral divergence highlights investor preference for defensive and growth-oriented segments amid uncertain macroeconomic conditions.
Market Breadth and Capitalisation Trends
The advance-decline ratio across the BSE500 index stood at 156 advances against 341 declines, translating to a ratio of 0.46x. This indicates a broader market participation skewed towards declines, despite the headline indices showing modest gains.
Large-cap stocks showed slight strength with the BSE100 index rising by 0.05%. In contrast, the mid-cap and small-cap indices faced downward pressure, with the BSE Midcap index falling by 0.14% and the BSE Smallcap index declining by 0.5%. This divergence suggests cautious investor sentiment towards riskier segments of the market.
Top Gainers and Losers Across Market Caps
Among the top performers in the BSE500 universe, Crompton Greaves Consumer Electricals led mid-cap gains with a rise of 5.62%. HDFC Asset Management Company (HDFC AMC) was the top large-cap gainer, advancing by 4.86%, reflecting positive investor interest in asset management businesses. Hindustan Copper also featured among the gainers with a 4.50% rise.
On the downside, PTC Industries, a small-cap stock, declined by 5.64%, marking the steepest fall among small caps. Siemens Energy India and Indian Oil Corporation (IOCL) were among the notable large-cap losers, falling by 4.28% and 3.66% respectively. GE Vernova Transmission & Distribution slipped 3.69% in the mid-cap segment.
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Foreign Institutional and Domestic Institutional Activity
Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) continued to play a pivotal role in shaping market direction. While detailed net inflow or outflow figures are not available for the day, the mixed market breadth and sectoral performance suggest a cautious stance among FIIs, with selective buying in large caps and profit booking in mid and small caps.
DIIs have historically provided support during volatile phases, and their activity remains crucial in maintaining market stability amid global uncertainties.
Global Cues and Their Impact
Global markets exhibited subdued movement, with investors digesting mixed economic data and awaiting key policy announcements. Asian markets showed limited direction, while European indices traded cautiously. This environment contributed to the restrained performance of Indian equities, as investors balanced domestic fundamentals against external risks.
Currency fluctuations and commodity price movements also influenced sectors differently, with energy and auto stocks reflecting sensitivity to crude oil prices and supply chain dynamics.
Outlook and Upcoming Corporate Results
Market participants are closely watching upcoming corporate earnings, including Sudeep Pharma, which is scheduled to announce results on 19 Dec 2025. Earnings season is expected to provide further clarity on sectoral performance and corporate health, potentially influencing market momentum in the coming sessions.
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Summary
The Indian equity market on 18 Dec 2025 demonstrated a cautious but steady stance, with the Sensex edging higher by 0.09% amid mixed sectoral trends. Large caps, led by HDFC AMC and Crompton Greaves Consumer Electricals, attracted investor interest, while mid and small caps faced selling pressure. The IT sector outperformed, contrasting with weakness in the auto segment. Market breadth remained subdued with a 0.46x advance-decline ratio across the BSE500, reflecting selective participation.
Foreign and domestic institutional investors maintained a watchful approach, influenced by muted global cues and anticipation of upcoming corporate earnings. The technical positioning of the Sensex above key moving averages suggests a cautiously optimistic outlook, though investors remain attentive to sector-specific developments and broader economic indicators.
As the market navigates these dynamics, stock-specific momentum and valuation considerations will likely guide investment decisions in the near term.
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