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Cautious Markets Marked by Sector Rotation and Global Headwinds

Indian equity markets ended the week on a cautious note, with benchmark indices closing marginally lower amid clear sectoral divergence. The Nifty 50 declined 0.31% and the Sensex slipped 0.40%, reflecting subdued headline sentiment. Beneath the surface, however, sectoral rotation remained active. PSU Banks led the market with a strong 1.33% gain, supported by improving asset quality expectations, while IT stocks rose 1.09%, benefiting from rupee weakness. FMCG also saw steady inflows, gaining 0.53%, highlighting selective defensive positioning.

Broader markets showed resilience, with the Nifty Midcap 100 marginally higher and small caps flat, indicating investors are becoming more selective rather than exiting risk outright. On the downside, Energy, Auto, and Banking stocks faced pressure, while sectors such as Pharma, Realty, and Metals delivered muted performance.

Precious metals were the standout theme of the week. Silver surged 6.4%, closing above the ?2 lakh/kg mark, driven by strong industrial demand and safe-haven buying. Gold also touched a fresh all-time high, reinforcing hedging demand amid global uncertainty. Globally, a stronger US dollar with USD/INR touching ?91. Rupee weakness and FPI outflows shape near-term market dynamics.

Scroll down to understand more of such market news and perspectives for the week gone by in easily understandable charts.

Stocks

Sun pharma Long Term Returns overcome Short Term Regulatory Jitters.

Sun pharma Long Term Returns overcome Short Term Regulatory Jitters.
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Fertiliser Stocks Gain on Governments Assurance on Supply Aid.

Fertiliser Stocks Gain on Governments Assurance on Supply Aid.
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Meesho’s ?1 Lakh Crore Valuation Reflects Future Growth Bets

Meesho’s ?1 Lakh Crore Valuation Reflects Future Growth Bets
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The drone stocks which stands to benefit from defence emergency procurement

The drone stocks which stands to benefit from defence emergency procurement
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Value Unlocking potential on demerger of Vedanta’s business

Value Unlocking potential on demerger of Vedanta’s business
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The following stock may benefit from increase private participation in nuclear energy sector

The following stock may benefit from increase private participation in nuclear energy sector
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Here’s how AMC’s reacted to the change in norms of expense ratio by SEBI.

Here’s how AMC’s reacted to the change in norms of expense ratio by SEBI.
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Indices

PSU Banks and IT led weekly gains, while Energy, Auto, and Banks remained under pressure.

PSU Banks and IT led weekly gains, while Energy, Auto, and Banks remained under pressure.
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Santa Claus Rally Shows Consistent Year-End Gains Across Market Caps

Santa Claus Rally Shows Consistent Year-End Gains Across Market Caps
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Seasonality in NIFTY IT: December Strength vs April Weakness

Seasonality in NIFTY IT: December Strength vs April Weakness
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FMCG Sector GPM and EBITDA Margins at Inflection Point.

FMCG Sector GPM and EBITDA Margins at Inflection Point.
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VIX Slips Below 10: History Suggests Gradual Returns Over 6 Months.

VIX Slips Below 10: History Suggests Gradual Returns Over 6 Months.
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Here’s how the BSE Smallcap Index performs on a forward-returns basis when both MTF flows and same-month small-cap performance turn negative.

Here’s how the BSE Smallcap Index performs on a forward-returns basis when both MTF flows and same-month small-cap performance turn negative.
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December Metals: Seasonality Aligns with Strength

December Metals: Seasonality Aligns with Strength
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Economy

Cooling Wholesale Prices Strengthen Case for Growth Support

Cooling Wholesale Prices Strengthen Case for Growth Support
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The government allowed 100% FDI for Insurance sector companies.

The government allowed 100% FDI for Insurance sector companies.
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Exports find their mojo back in November 2025 alongside slowness in imports

Exports find their mojo back in November 2025 alongside slowness in imports
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Fund Flows

Large-Cap Inflows Coincide with Gradual Promoter Stake Dilution

Large-Cap Inflows Coincide with Gradual Promoter Stake Dilution
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November retail flows reflect steady confidence, with investors favouring mid- and small-caps

November retail flows reflect steady confidence, with investors favouring mid- and small-caps
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NSE Turnover 2025: Early Momentum, Waning Participation

NSE Turnover 2025: Early Momentum, Waning Participation
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Nifty Media at a Crossroads: Recovery or Relapse?

Nifty Media at a Crossroads: Recovery or Relapse?
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Opportunities

Sandur Manganese: Post-Breakout Consolidation Signals Trend Continuation

Sandur Manganese: Post-Breakout Consolidation Signals Trend Continuation
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Food for thought


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Cautious Markets Marked by Sector Rotation and Global Headwinds
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