Market Outlook - December 2025

Market update

Equity Market Performance
November saw strong market gains, buoyed by robust
Q2FY26 earnings results. Nifty moved out from its narrow
trading range, hitting a fresh new highs amidst positive global
cues. The Nifty gained 1.9%, while the Mid-cap indices also
made similar gains, the Small-cap indices underperformed
and declined by 3%. On sectoral front IT (+3.9%), Auto (+3.1%),
and Banks (+3.1%). On the other hand, Realty (-4.7%), Power
(-4.5%), and Metals (-2.9%) were the top laggards. Global
markets ended mixed. Brazil (+6.4%), Indonesia (+4.2%), and
Singapore (+2.2%) emerged as top performers, whereas
South Korea (-4.4%) Japan (-4.1%), Thailand (-4.0%) lagged
behind. Valuations remain elevated, with Nifty trading at a
one-year forward PE of 20.7x, above long-term averages.