Weekly Market Wrap-Up 01–05 December 2025: Nifty Slips Below 26,200, Bank Nifty Softens, INR Stable & Commodities Stay Mixed
Updated: 06 December 2025
Category: Weekly Wrap-Up | Market Analysis
By CapitalKeeper Research Desk
A complete weekly wrap-up of the Indian stock market (01–05 Dec 2025). Nifty, Bank Nifty, Sensex, Fin Nifty movements explained with INR performance, gold–crude outlook, sector analysis, FIIs/DIIs action, and forecast for the upcoming week.
Weekly Market Wrap-Up (01–05 December 2025): Markets Cool Off After Record Run, INR Holds Steady & Commodities Stay Mixed
The first trading week of December 2025 opened with optimism but gradually turned into a consolidation phase as profit-booking emerged across frontline indices. Global triggers remained largely neutral, though rising U.S. yields and mixed Asian cues kept traders cautious. Domestically, the market seemed to be absorbing the past three weeks of uninterrupted upside, giving way to a healthy cool-off.
Despite the slight decline seen toward the end of the week, broader sentiment remains constructive and rotational buying across selected pockets kept the downside limited.
Below is the complete breakdown of how the markets moved through the week.
Weekly Index Snapshot (01–05 Dec 2025)
| Index | Monday Open (01 Dec) | Friday Close (05 Dec) | Weekly Trend |
|---|---|---|---|
| Nifty 50 | 26,325.89 | 26,186.45 | ▼ Mild Pressure |
| Bank Nifty | 60,102.05 | 59,777.20 | ▼ Slight Decline |
| Sensex | 86,065.92 | 85,712.35 | ▼ Consolidation |
| Fin Nifty | 27,835.05 | 27,811.90 | ▼ Flat to Negative |
A Week Defined by Consolidation & Sector Rotation
The Indian equity market began the week with Nifty above the 26,300 mark, extending its bullish stretch from November. However, as the week progressed, traders shifted focus from heavyweights to selective mid-cap and thematic sectors. This resulted in modest profit-booking on frontline indices while pockets like FMCG, IT, railways, defence, and chemicals witnessed rotation-driven activity.
Key Highlights of the Week:
- Nifty slipped nearly 140 points from Monday’s open.
- Bank Nifty remained sideways with a soft bias, losing around 325 points.
- Sensex followed similar behavior, ending roughly 350 points lower.
- Fin Nifty stayed comparatively stable, showing resilience near 27,800.
While the week wasn’t particularly volatile, the market’s inability to surpass new highs indicates that investors may be waiting for fresh domestic triggers—especially MPC commentary, corporate guidance updates, and global data prints.
Global Market Influence: A Mixed Bag of Signals
This week’s market tone was heavily impacted by:
- U.S. 10-year bond yields moving above 4.35%, cooling global risk sentiment.
- Crude oil volatility, driven by uncertain OPEC+ supply cues.
- Weakness in Chinese equity markets, affecting Asian mood.
- U.S. non-farm payroll anticipation, prompting cautious global behavior.
Despite these, India remained relatively resilient, thanks to strong domestic liquidity and sector-specific strength.
INR Weekly Performance: Stable Around Key Levels
The Indian Rupee stayed range-bound through the week, trading around the ₹83.28 – ₹83.45 band against the USD.
Factors influencing INR stability:
- Consistent RBI presence in the forex market.
- Softening crude prices reducing import bill pressure.
- Mixed dollar strength across global currencies.
The Rupee’s behavior suggests a stable near-term outlook, although any unexpected surge in oil prices could inject short-term volatility.
Commodity Market Wrap: Gold Shines, Crude Adjusts
Gold Prices (Domestic) – Slightly Bullish
Gold stayed firm through the week as global uncertainty nudged investors toward safe-haven assets.
Drivers:
- U.S. yield fluctuations
- Weak data from Europe
- Buying interest in festive/off-season accumulation pockets
Gold traders are eyeing a breakout above ₹62,500 (MCX level) if global sentiment continues to favor safety.
Crude Oil – Range-Bound With Bearish Pressure
Crude prices cooled off due to:
- Doubts over OPEC’s additional production cuts
- Weak global demand outlook
- Higher U.S. inventory build-up
MCX crude traded cautiously, unable to sustain above the ₹6,500–6,700 band.
The overall commodity tone for the week was mixed, with gold outperforming while crude remained largely soft.
Sector-Wise Deep Dive
1. Banking & Financials
Bank Nifty slipped marginally, dragged by:
- Select profit-booking in private banks
- Slight dip in credit growth momentum data
- Cautious commentary ahead of economic releases
However, PSU banks remained relatively strong, hinting that institutional investors still favor structural stories.
2. IT
IT stocks saw a rebound as:
- Weakening dollar index boosted expectations of improved margins
- Positive commentary from global tech earnings
The broader IT index gained modestly, offering support to Nifty.
3. FMCG
Stable demand outlook and cost optimization kept FMCG stocks buoyant, making them one of the defensive shields for the week.
4. Metals
Metal stocks cooled off slightly due to:
- Soft China macro data
- Decline in steel futures
- Slowdown in global manufacturing activity
5. Auto
Auto sector remained largely mixed as EV stocks continued to attract speculative interest while traditional auto OEMs consolidated.
6. Energy
Crude-linked energy stocks corrected mildly but remained structurally positive.
FII & DII Flow (Indicative Market Mood)
- Foreign Institutional Investors (FIIs):
Slight net outflows as global risk appetite remained muted. - Domestic Institutional Investors (DIIs):
Consistent buying, absorbing corrections and providing market support.
This dynamic continues to demonstrate that domestic liquidity remains the backbone of Indian equity markets.
Technical View: Nifty, Bank Nifty & Fin Nifty
Nifty Outlook
- Support Zones: 26,050 / 25,880
- Resistance Zones: 26,350 / 26,520
- RSI cooled off from overbought regions, indicating healthy consolidation.
Bank Nifty
- Support: 59,300 – 59,000
- Resistance: 60,400 – 60,900
- Index is forming a short-term range, awaiting breakout triggers.
Fin Nifty
- Support: 27,650
- Resistance: 28,050
- The index remains one of the most stable benchmarks this week.
Outlook & Forecast for the Upcoming Week (08–12 Dec 2025)
1. Market Sentiment
The coming week may begin with mild positivity as global factors stabilize and domestic cues become clearer. Markets are likely to maintain a sideways-to-positive tone unless significant global macro shocks emerge.
2. Key Drivers to Watch
- RBI policy commentary
- U.S. inflation and employment data
- Crude price movement
- FII behavior
- INR volatility
3. Expected Market Behavior
- Nifty could attempt a move toward 26,350 again if support holds.
- Bank Nifty may outperform if private banks rebound.
- Fin Nifty may continue its stable, gradual uptrend.
- Midcaps could witness increased sector rotation, especially in:
- Infra
- Railways
- Pharma
- Defence
- EV ecosystem
4. Commodity Forecast
- Gold may stay on the stronger side until U.S. yields stabilize.
- Crude likely to remain under pressure unless supply disruptions arise.
5. INR Outlook
- Expected to remain in the 83.20–83.50 zone with low volatility.
Overall sentiment for the upcoming week is steady, slightly optimistic, and rotation-driven.
FAQs
1. Why did Nifty fall this week?
Primarily due to profit-booking after a strong November rally, along with muted global cues.
2. Is Bank Nifty weakening?
Not significantly—it’s consolidating. A breakout above 60,400 may resume momentum.
3. How is INR expected to move next week?
INR may remain largely stable unless crude spikes sharply.
4. Will gold prices rise further?
Gold remains bullish as long as global uncertainty persists.
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Ranjit Sahoo is the visionary behind CapitalKeeper.in, a leading platform for real-time market insights, technical analysis, and investment strategies. With a strong focus on Nifty, Bank Nifty, sector trends, and commodities, she delivers in-depth research that helps traders and investors make informed decisions.
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