Post Session: Quick Review

Indian equity benchmarks ended lower on Wednesday, as investors awaited fresh cues from the ongoing negotiations on the India-US bilateral trade deal. After making a cautious start, soon indices turned positive, as traders took some support after Asian Development Bank upgraded India’s growth projection to 7.2% for fiscal year ending March 2026. However, in late morning session, markets erased most of their gains and traded around neutral lines, amid profit-booking and cautious positioning emerged ahead of key economic data releases. Finally, benchmarks slipped further and closed near the day’s low points.

Some of the important factors in trade:

Ongoing selling by FIIs: Sentiments remained downbeat as Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,760.08 crore on Tuesday, according to exchange data.

ADB upgrades India’s growth projection to 7.2% for fiscal year ending March 2026: Traders overlooked the Asian Development Bank (ADB) in its latest Asian Development Outlook has upgraded India’s growth projection by 0.7 percentage points to 7.2% for fiscal year ending March 2026 from 6.5% projected in September release. 

India-US trade talks progressing: Traders took note of the Commerce and Industry Minister Piyush Goyal said that talks with the US on the proposed bilateral trade agreement are progressing.

Global front: European markets were trading mostly in red ahead of the Federal Reserve's final decision of the year on interest rates. Asian markets ended mostly in red, as investors parsed mixed inflation data from China.

The BSE Sensex ended at 84391.27, down by 275.01 points or 0.32% after trading in a range of 84313.62 and 85020.34. There were 10 stocks advancing against 19 stocks declining on the index, while one stock remained unchanged. (Provisional)

The broader indices ended in red; the BSE Mid cap index fell 1.08%, while Small cap index was down by 0.58%. (Provisional)

The gaining sectoral indices on the BSE were Metal up by 0.52%, Energy up by 0.21%, Oil & Gas up by 0.08%, Basic Materials up by 0.06% and Utilities up by 0.06%, while Consumer Durables down by 1.18%, Capital Goods down by 0.99%, IT down by 0.90%, TECK down by 0.87% and Industrials down by 0.76% were the top losing indices on BSE. (Provisional)

Meanwhile, the Reserve Bank of India (RBI) Governor Sanjay Malhotra has said that while there has been steady improvement in the health and operations of the banking sector in 2025, banks must avoid complacency and remain vigilant in a dynamic environment. These comments came during the meeting with the Managing Directors and Chief Executive Officers of Public Sector Banks and select Private Sector Banks in Mumbai. 

RBI Governor further noted that the 125 basis points easing, combined with greater use of technology, should translate into lower intermediation costs and higher efficiency, thereby supporting sustainable growth and deeper financial inclusion. Emphasising better customer service, he urged banks to focus on reducing grievances and strengthening internal systems. 

Malhotra also highlighted the growing risks from digital frauds and called for more robust, intelligence-driven safeguards. Appreciating banks’ efforts on re-KYC and unclaimed deposits, he encouraged proactive outreach and sustained awareness campaigns. He reaffirmed the Reserve Bank’s consultative approach, referring to recent initiatives in consolidation and simplification of regulations. 

The top gainers on the Sensex were Tata Steel up by 0.87%, Sun Pharma up by 0.75%, ITC up by 0.55%, NTPC up by 0.48% and HCL Technologies up by 0.38%. On the flip side, Eternal down by 3.03%, Trent down by 1.79%, Bharti Airtel down by 1.10%, Infosys down by 0.90% and Tech Mahindra down by 0.84% were the top losers. (Provisional)

The CNX Nifty ended at 25758.00, down by 81.65 points or 0.32% after trading in a range of 25734.55 and 25947.65. There were 23 stocks advancing against 27 stocks declining on the index. (Provisional)

The top gainers on Nifty were Eicher Motors up by 1.48%, Hindalco up by 1.09%, HDFC Life Insurance up by 1.07%, Tata Steel up by 0.97% and Coal India up by 0.74%. On the flip side, Interglobe Aviation down by 3.26%, Eternal down by 2.90%, Trent down by 1.64%, Adani Enterprises down by 1.50% and Shriram Finance down by 1.12% were the top losers. (Provisional)

European markets were trading mostly in red; Germany’s DAX lost 122.95 points or 0.51% to 24,039.70 and France’s CAC fell 28.81 points or 0.36% to 8,023.70, while UK’s FTSE 100 increased 12.59 points or 0.13% to 9,654.60.

Asian markets settled mostly down on Wednesday as investors were awaiting the Federal Reserve's interest rate decision later in the day, while Jerome Powell’s remarks to the press after the rate announcement also waiting for clues on the easing cycle’s direction. Investors will be focused on Fed’s final Summary of Economic Projections (SEP) for 2025, which includes forecasts from Fed officials on economic growth, inflation, and interest rates for the coming years. Chinese shares declined after the release of mixed inflation data, with consumer price inflation accelerating in November while factory deflation worsened. Attention now turns to the China's upcoming Central Economic Work Conference, where policymakers are expected to outline next year’s growth targets and policy plans. Moreover, Japanese shares slipped marginally ahead of the Bank of Japan policy meetings. Bank of Japan Governor Kazuo Ueda indicated that the central bank is getting close to its inflation target, suggesting a potential near-term rate hike.