Introduction: Weekly Market Update
The Weekly Market Update December 2nd Week reflects a phase of consolidation for Indian equity markets, where optimism from the RBI’s recent rate cut was counterbalanced by global risk-off sentiment and profit booking at higher levels. While headline indices managed to stay largely flat, broader markets showed selective weakness, indicating cautious investor positioning.
This Weekly Stock Market Update captures how declining volatility, persistent foreign selling, and currency pressure shaped market behaviour. Investors tracked domestic macro cues closely while remaining sensitive to global market movements, crude oil volatility, and U.S. dollar strength.
For readers tracking market trends consistently, you can also refer to the Weekly Market Update December 1st Week to understand how sentiment evolved leading into this week. You can explore all previous updates in our market update archive.
Indian Market Overview: Weekly Market Update December 2nd Week
In the Weekly Market Update December 2nd Week, Indian equity markets ended on a mixed and range-bound note. The positive impact of the RBI’s 25 bps repo rate cut to 5.25% was offset by global uncertainty, profit booking, and continued pressure from a weakening rupee.
Broader markets showed divergence. While large caps remained stable, small caps underperformed, indicating selective risk appetite. Volatility eased during the week, with the India VIX declining by 6.56%, signalling reduced near-term fear despite global market weakness.
The Indian Rupee weakened further to ₹90.42 per USD, marking fresh lows amid sustained dollar strength and crude oil volatility. On the flow front, FIIs turned net sellers, while DIIs continued to provide support, cushioning the downside.
Index Performance – Weekly
| Index | Closing Level | Weekly Change | % Change |
|---|---|---|---|
| Nifty 50 | 26,033.10 | -107.65 | -0.41% |
| Sensex | 85,264.79 | -145.39 | -0.17% |
| Nifty Bank | 59,397.80 | -179.00 | -0.30% |
| Nifty IT | 38,262.95 | -643.75 | -1.65% |
| S&P BSE SmallCap | 50,883.90 | +164.43 | +0.32% |
Overall, this Weekly Stock Market Update highlights a consolidation phase where investors preferred quality and defensives over aggressive positioning.
Sectoral Highlights – Weekly Market Update December 2nd Week
Sectoral performance during the Weekly Market Update December 2nd Week was clearly mixed, reflecting selective buying and cautious sentiment across the market.
Metals emerged as the top-performing space, supported by strong global commodity cues. Infrastructure stocks also showed resilience, benefiting from continued government capex momentum. Financials, banks, and consumer durables remained mildly positive following the RBI rate cut, while auto stocks benefited from robust sales data.
On the flip side, defence stocks witnessed the sharpest correction, followed by tourism-related stocks amid global economic concerns. FMCG, pharma, and IT stocks declined due to weak rural demand and margin pressures. PSU banks also ended the week with mild losses.
This sectoral divergence is a key theme of the Weekly Stock Market Update, reinforcing the importance of selective stock and sector allocation.
Best Performing Sectors – Weekly Market Update December 2nd Week
| Sector | Weekly Change |
|---|---|
| Forest Materials | +3.46% |
| Metals & Mining | +2.94% |
| Retailing | +2.29% |
| Media | +2.27% |
| Diversified | +1.40% |
Weakest Sectors – Weekly Market Update December 2nd Week
| Sector | Weekly Change |
|---|---|
| Others | -2.63% |
| Consumer Durables | -2.47% |
| FMCG | -2.35% |
| Transportation | -1.89% |
| Healthcare | -1.81% |
Industry Movers: Weekly Market Update December 2nd Week
The Weekly Market Update December 2nd Week highlights sharp divergence at the industry level, reflecting stock-specific triggers, commodity price movements, and demand outlook variations.
Metal-linked industries dominated the upside as global commodity prices strengthened, while internet retail and entertainment segments benefited from improving discretionary demand. However, aviation and defence-linked industries faced pressure due to rising costs, weak guidance, and global uncertainty.
This Weekly Stock Market Update underlines how industry rotation remained active, offering opportunities in select pockets despite broader consolidation.
Top Performing Industries – Weekly Market Update December 2nd Week
| Industry | Weekly Change |
|---|---|
| Other Non-Ferrous Metals | +11.76% |
| Internet & Catalogue Retail | +5.66% |
| Movies & Entertainment | +5.04% |
| Other Industrial Goods | +4.56% |
| Copper | +4.36% |
Strong performance in metal-linked industries aligned with gains in the broader metals sector, making them key contributors in this Weekly Stock Market Update.
Worst Performing Industries – Weekly Market Update December 2nd Week
| Industry | Weekly Change |
|---|---|
| Airlines | -10.09% |
| Computer Hardware | -8.03% |
| IT Training Services | -5.87% |
| Paints | -5.28% |
| Aerospace & Defence | -4.99% |
Airlines and defence-related industries remained under pressure amid cost concerns and global macro headwinds, reinforcing cautious positioning in cyclicals.
Top Weekly Gainers & Losers (Stocks)
Stock-specific action remained vibrant in the Weekly Market Update December 2nd Week, with several mid-cap and small-cap stocks witnessing sharp moves driven by earnings expectations, analyst actions, and volume-based momentum.
This Weekly Stock Market Update highlights how selective stock picking continued to outperform broader indices.
Top Gainers Stocks– Weekly Market Update December 2nd Week
| Stock | Weekly Change | LTP |
|---|---|---|
| Transformers & Rectifiers | +18.28% | 280.20 |
| Hindustan Zinc | +12.76% | 561.65 |
| GE T&D | +10.19% | 3050.90 |
| Latent View Analytics | +9.77% | 494.95 |
| CCL Products | +7.95% | 1025.30 |
Strong volume participation and sector tailwinds supported these stocks during the week.
Top Losers Stocks– Weekly Market Update December 2nd Week
| Stock | Weekly Change | LTP |
|---|---|---|
| Reliance Infrastructure | -12.26% | 135.75 |
| InterGlobe Aviation | -9.50% | 4860.50 |
| Reliance Power | -8.36% | 34.53 |
| eClerx Services | -7.03% | 4492.50 |
| Asian Paints | -6.86% | 2764.80 |
Weak guidance, insider activity, and sector-specific concerns drove selling pressure in these names.
Global Market Overview
A holistic Weekly Stock Market Update is incomplete without looking across the borders. The global markets are currently flashing mixed signals which directly impact Indian sentiment, especially for IT and Export-oriented sectors.
As of the close of this week (December 13, 2025), the US markets are undergoing a correction. The Dow Jones is down 0.51%, and the tech-heavy Nasdaq Composite has shed a significant 1.69%. This weakness in the US generally translates to pressure on Indian IT stocks, which we observed with Nifty IT falling 1.65% this week.
However, the Asian peers are decoupling. The Nikkei 225 rallied 1.37% and the Hang Seng surged 1.75%. This indicates that while the West is risk-off, money is potentially rotating back into Asian emerging markets. For Indian investors, this is a positive sign—if the domestic valuation comfort returns, FII flows could reverse from negative to positive.
Investors should keep an eye on these global indices on platforms like BSE India or global trackers to gauge the gap-up or gap-down potential for Monday morning.
Upcoming Economic Events Next Week
The upcoming week will be data-heavy and critical for market direction, as highlighted in the Weekly Market Update December 2nd Week. Key domestic and global economic indicators are expected to influence currency movements, bond yields, and sectoral sentiment.
Key Economic Events to Watch
| Date | Time | Event | Previous |
|---|---|---|---|
| Monday, Dec 15 | 12:00 | WPI Food Inflation YoY | -5.04% |
| WPI Fuel Inflation YoY | -2.55% | ||
| WPI Inflation YoY | -1.21% | ||
| WPI Manufacturing YoY | 1.54% | ||
| 15:30 | Balance of Trade | -41.68 B$ | |
| 16:00 | Unemployment Rate | 5.2% | |
| Tuesday, Dec 16 | 10:30 | HSBC PMI Flash (Composite, Mfg, Services) | 59.7 / 56.6 / 59.8 |
| 17:00 | RBI Market Borrowing Auctions | — | |
| Friday, Dec 19 | 17:00 | Foreign Exchange Reserves | 687.26 B$ |
| Monetary Policy Meeting Minutes | — |
These data points will be crucial in shaping expectations around inflation, liquidity, and growth—key themes for the next Weekly Stock Market Update.
Conclusion – Weekly Market Update December 2nd Week
The Weekly Market Update December 2nd Week reflects a phase of consolidation with selective opportunities. While RBI’s rate cut provided structural support, global uncertainty, rupee weakness, and profit booking limited upside momentum.
Large-cap indices remained stable, but small-cap volatility highlighted the importance of stock selection. Sector rotation continued, favouring metals and retail-linked plays, while defensives and consumption-focused sectors faced pressure.
As we move into the next trading week, investors should closely track inflation data, PMI readings, and currency movements. For ongoing insights, explore our Weekly Market Update archive or subscribe to our pre-market analysis newsletter for early market cues.
Overall, the Weekly Stock Market Update suggests staying disciplined, focusing on quality stocks, and aligning portfolios with evolving macro trends.
For a comparison with last week’s movement, Explore all reviews and daily recaps here: All Weekly Stock Market Update Reports
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References
- NSE India — for benchmark index data & FPI flows.
- BSE India — for corporate results and announcements.
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