Indian Stock Market: Nifty Near Record Highs as Peace Talks, Fed Signals & IPO Rush Shape December 2025.
~Sumon Mukhopadhyay.
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Let’s break down what’s driving the markets and what it means for your December strategy.
The Domestic Market Snapshot: Calm, Confident, and Slightly Cautious:
Nifty 50 is lounging around the 26,200 level after briefly hitting 26,295. The Sensex is holding near 85,600, boosted mainly by metal names and PSU banks. Expiry-related profit-booking created momentary turbulence, but overall sentiment remains upbeat.
Mid- and small-caps saw selective selling, but large-cap banking and IT giants like HDFC and Infosys are still carrying the torch.
Meanwhile, the stock of MEP Infrastructure Ltd (Rs.2.18) has again started hitting continuous UCs. The company has been under CIRP since early 2024, with multiple updates through 2025 indicating ongoing creditor negotiations and compliance filings. Fortunately, The National Company Law Tribunal (NCLT) has accepted the Committee of Creditors’ (CoC) resolution plan for MEP Infrastructure Ltd. That means the company is officially on the path to revival under the Insolvency and Bankruptcy Code.
Gold, meanwhile, has surged to around $4,149 per ounce, reminding us that geopolitical anxiety is alive and kicking—and lifting commodity-linked plays back home.
IPO Mania Continues: Fresh Money, Hot Debuts, and Strong Demand:
2025 has turned into a blockbuster year with over ₹1.54 lakh crore raised via mainboard IPOs and NFOs. Tech, logistics, agro-tech, pharma—everyone is stepping into the spotlight. Retail investors are loving the premiums on listing day.
Thematic ETFs—especially those linked to gold and ESG—are picking up steam. They offer easy diversification and a smart hedge in a market where uncertainty still lurks.
The Global Lens: Peace Talks, Rate Cut Whispers & Risk-On Mood:
The world’s eyes are glued to the Russia–Ukraine dialogue. The U.S. push for a settlement is gaining traction, even though Ukraine has pushed back on key territorial and NATO clauses. Putin says he's open to “serious” talks but isn't shy about reminding everyone of the stakes.
Right after the diplomatic back-and-forth, Kyiv was hit by missile strikes—a reminder that peace is still fragile.
Across the Atlantic, the U.S. Fed’s dovish tone has lifted Wall Street. December rate-cut odds hover near 50%, with the funds rate at 3.75–4%. Asian markets are cheering too.
India stands to benefit if global yields cool and foreign inflows return in force.
Strategy Corner: What Smart Investors Can Do Now.
Here’s how to navigate the next few weeks:
🔹Stick to quality large- and mid-caps with strong balance sheets.
🔹Keep an eye on the Russia–Ukraine negotiations; a breakthrough could cool commodities and revive risk appetite.
🔹Watch the RBI’s December 5 policy review. A potential 25 bps cut—if inflation aligns—could turbocharge banks and bonds.
🔹Diversify intelligently: gold ETFs for a hedge, ESG themes for long-term stability.
Volatility may dominate, but opportunities are plenty for nimble, disciplined investors.
What’s Coming Up: December’s Power-Packed Calendar:
December opens with high-stakes IPOs—Meesho and Fractal may together raise around ₹40,000 crore—plus the crucial RBI meet and globally sensitive trade headlines.
If peace efforts progress and the Fed maintains its softening stance, Nifty could attempt 26,400 and beyond. But remember, geopolitics has a habit of surprising markets.
(P.S. This is informational, not financial advice. DYOR always.)
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