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Holiday Week: Range-Bound Markets Expected
21 Dec, 2025
Summary
- Stock markets to trade in a range this week due to holidays.
- Foreign investor activity and global data to influence sentiment.
- Markets anticipate US GDP and PCE data for economic health clues.
Indian stock markets anticipate a range-bound trading week, shortened by the Christmas holiday. Trading activity is expected to be subdued globally due to festive breaks. Market sentiment will be driven by foreign investor movements and key global macroeconomic data releases.
Domestically, investors will closely watch infrastructure output data, bank loan and deposit growth, and foreign exchange reserves. The movement of the Indian Rupee against the US Dollar and crude oil prices are also significant factors. A constructive market sentiment has emerged following lower-than-expected US inflation data, which has revived hopes of further monetary easing by the US Federal Reserve.
Last week, the BSE Sensex and Nifty experienced slight declines but saw a recovery on the final trading day, aided by value buying and renewed interest from foreign portfolio investors. This week, focus is expected to gradually shift towards the upcoming Q3 corporate earnings season, with anticipation of continued positive FII participation.
