Indian equity markets closed lower for the third consecutive session amid cautious sentiment driven by foreign outflows, rupee volatility, and mixed global signals, with the Sensex declining 120 points and the Nifty settling below 25,850. Key themes included anticipation around major IPO allotments, corporate acquisitions in pharma and packaging sectors, and subdued US economic indicators raising concerns over global demand. 

• Persistent FII outflows pressure indices amid year-end adjustments.
• Rupee volatility eases slightly after RBI interventions.
• Robust demand for ICICI Prudential AMC IPO signals strong AMC sector interest.
• SEBI approves regulatory overhauls for brokers and mutual funds.

Indian markets expect a flat-to-mildly positive start on December 17, 2025, amid global indecision, a record-low rupee, and sustained FII outflows.

Key Themes & Picks

• Gift Nifty suggests a muted, slightly positive opening.

• IT sector faces downgrades amid weak demand signals.

• Reliance Industries upgraded; consumer goods offer value opportunities.

• Key calls: Buy CG Power; TCS downgraded to neutral.

• Persistent FII outflows and weak rupee weigh on sentiment.

Indian markets exhibited a bearish sentiment on December 16, 2025, with major indices declining amid persistent foreign outflows and a weakening rupee, reflecting broader economic slowdown signals from PMI data. 

• Markets fell due to foreign outflows and a weak rupee, impacting investor confidence.
• Private sector activity slowed to a 10-month low, signaling economic caution.
• Rupee hit record low, raising import costs and inflation concerns.
• Insurance FDI hiked to 100%, aiming to boost sector growth.
• US business activity weakened, influencing global market dynamics.