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Monthly Market Review December 2025: How Did Indian Markets Close the Year?
The December 2025 Monthly Market Review has been a month of rapid stability for the Indian stock market. Despite global uncertainties in the last part of the year, selling by foreign investors, and limited volumes, Indian markets ended 2025 on a positive note.
This Monthly Market Update India suggests that while the return of around 10% in 2025 may not be extraordinary, it reinforces the foundation of trust for long-term investors. HMA Wealth believes that the true beauty of the market is reflected in such calm, yet sustainable phases.
How Did Key Market Indices Perform in December 2025?
In this Monthly Market Review December 2025, the major indices closed the year with a slight gain, although there was limited pressure in the midcaps and small-caps.
| Index | Dec 1 Open | Dec 31 Close | Monthly Change (%) | YTD 2025 (%) |
| Nifty 50 | 25,950 | 26,129.60 | +0.7 | +10.5 |
| BSE Sensex | 84,675 | 85,220.60 | +0.6 | +9.9 |
| Nifty Bank | 57,200 | 57,800 | +1.0 | +12.0 |
| BSE Midcap | 48,500 | 48,200 | -0.6 | +15.2 |
| BSE Small-cap | 32,100 | 31,800 | -0.9 | +18.4 |
This Monthly Market Update makes it clear that large-cap stocks provided stability to investors, while the broader market saw mild profiteering.
Which Sectors Shaped the Market in December 2025?
Sectoral performance was an important part of this Monthly Market Review, December 2025.
| Sector | Monthly Change (%) | YTD 2025 (%) | Key Driver |
| Financial Services | +1.2 | +10.7 | RBI rate cut expectations |
| Metals | +2.5 | +16.0 | Global demand recovery |
| Auto | +1.8 | +16.2 | Strong festive sales |
| Oil & Gas | +1.5 | +8.5 | Stable crude prices |
| IT | -0.8 | -22.3 | US slowdown concerns |
This Monthly Market Update India indicates that sectors linked to domestic demand proved to be more promising for investors in 2025.
Which Stocks Were the Key Gainers and Losers?
During December, infrastructure and commodity stocks showed strength.
Top Gainers (Monthly):
- JSW Steel: +8.2%
- Tata Steel: +7.5%
- ONGC: +6.1%
- Mahindra & Mahindra: +5.3%
Top Losers (Monthly):
- TCS: -4.2%
- Bajaj Finance: -3.8%
- Asian Paints: -3.1%
- Infosys: -2.9%
This monthly market update shows that the domestic sector remained relatively stable despite global IT pressures.
What Did Market Breadth and Derivatives Data Indicate?
In this Monthly Market Review, the market breadth remained positive in December 2025. The number of stocks that gained on the BSE was almost double that of the declining stocks, which is a sign of insider strength.
- India VIX: ~12
- Nifty Support: 26,000
- Resistance: 26,500
- Put-Call Ratio: ~0.95
This Monthly Market Update India sets the stage for potential volatility in January 2026.
How Did FII and DII Activity Impact the Market?
Foreign investors continued to sell in December, but domestic investors maintained equilibrium.
| Activity (₹ Cr) | FII Net | DII Net |
| Cash Market | -3,597 | +6,760 |
| Total Equities | -4,500 | +7,500 |
This Monthly Market Review December 2025 shows that SIP and mutual fund investments remain the biggest strength of the Indian market.
Which Economic Indicators Influenced Market Sentiment?
- GDP Growth (Q2 FY26): 8.2%
- Inflation (CPI): 0.71%
- RBI Policy Rate: 6.5%
- USD/INR: 89.82
- Crude Oil: $57.41/bbl
In this Monthly Market Update, low inflation and strong economic data supported investor confidence.
What Does Technical Analysis Suggest Going Ahead?
- Nifty Range: 25,850 – 26,200
- RSI: ~55 (Neutral)
Bullish Scenario: Breaks above 26,200
Bearish Scenario: Slips below 25,850
This Monthly Market Review December 2025 suggests that the market is currently in consolidation mode.
What Is the Market Outlook for 2026?
According to analysts, in 2026:
- Nifty Target: 28,500 – 29,000
- Expected Returns: 12–15%
This Monthly Market Update India reminds investors that discipline and patience pay off the most in the long term.
HMA Wealth Closing Insight
Monthly Market Review December 2025 teaches us that not every year gives fast returns, but every year does give the right lessons. 2026 will reward investors who move forward with strategy, patience, and consistency, staying out of the noise.
HMA Wealth’s belief is clear: Wise investments are the foundation for true wealth.
FAQs
How did the Indian stock market do in December 2025?
In December 2025, the Indian stock market showed stability rather than sharp volatility. The major indices closed in a positive range despite limited trading volumes at the end of the year, indicating that investor confidence still remains.
What message does the market’s performance in 2025 send to investors?
The return of around 10% throughout 2025 suggests that even though this year may not have been exceptional, the Indian market’s foundation for long-term investment remains strong. This performance reiterates the importance of patience and discipline.
Which sectors performed better at the end of the year?
In the last month of the year, the metal, auto, and financial sectors remained relatively strong. At the same time, technology-related stocks looked weak due to global pressure. This sector rotation signals investors to maintain diversification.
What was the impact of the activity of foreign and domestic investors?
Despite the sell-off by foreign investors, domestic institutional investors and funds through SIPs provided balance to the market. This shows that the participation of local investors has become a major force in the Indian market.
What should investors look out for in 2026?
In the coming year, investors should keep an eye on economic growth, inflationary trends, and policy decisions. Systematic investments for the long term, sector diversification, and risk management can help deliver better outcomes in 2026.
Written by Hasanraza Ansari
Founder of HMA Wealth · Empowering India’s Next Generation of Investors
Finance & Operations Expert with 9+ years of experience, dedicated to simplifying wealth creation and helping Indians invest smarter through HMA Wealth.
Educational content only. Investing in the stock market involves risks. Please do your own research or consult a SEBI-registered financial advisor before making any investment decisions.