Indian Stock Market Weekly Updates: Indian stock market indexes witnessed a profit booking in the third trading session of 2025. Indian stock markets traded on an optimistic note in the first two trading sessions of the year, with expectations of solid Q3 earnings in IT stocks and strong sales in the automobile sector. Investors remain cautious ahead of the Q3 earnings which is set to begin from the next week.
Sensex and Nifty: Profit Booking Halts Early Gains
The S&P BSE Sensex declined 720.60 points or 0.90% to 79223.11, while the Nifty 50 index ended lower 0.76% to 24004.75The Nifty index holds the 24000 level in the end despite the heavy selling pressure in IT Pharma and Pvt Banking stocks. However, some buying was witnessed in the media and oil & gas stocks.
Heavyweight stocks like HDFC Bank, TCS, and ICICI Bank were the major losers in the Nifty 50 stocks. In the broader market, the Nifty midcap index declined by 0.30% while the Nifty smallcap index fell by 0.24%. The market breadth was almost neutral as 1189 shares advanced while 1201 shares declined on the NSE. The NSE’s volatility index “India VIX” dropped 1.43% to 13.54.
Sensex and Nifty on Weekly Updates
The key indices, Sensex and Nifty closed higher for the second consecutive week. The market witnessed moderate gain on the 3rd Jan ended the week despite weaker domestic economic data. The equity benchmarks ended lower for 3 out of 5 trading sessions during the week. The broader markets outperformed the benchmarks.
The BSE Sensex gained 524.04 points or 0.67% and closed at 79,223.11, while the Nifty 50 index was up by 191.35 points or 0.80% and settled at 24004.75. The BSE Midcap index gained 1.31% while the BSE Smallcap index was up by 1.94% during the week.
Economic News Impacting the Indian Stock Markets
Forex Reserves:
- Forex reserves fell by $8.478 billion to $644.391 billion as of December 20, per RBI data.
- Gold reserves dropped by $2.33 billion to $65.726 billion.
- SDRs decreased by $112 million to $17.885 billion.
- IMF reserve position declined by $23 million to $4.217 billion.
Fiscal Deficit and Spending:
- The fiscal deficit for April-November was Rs 8.5 lakh crore (52.5% of the target), which came higher than 50.7% last year.
- Capital expenditure was Rs 5.13 lakh crore (46.2% of the target), below last year’s 58.5%.
- Overall spending reached 60.1%, slightly up from 59% last year.
- Net tax revenue was 55.9%, lower than the previous year.
Manufacturing:
- December 2024 PMI fell to 56.4 from 56.5 in November, showing slower but robust growth above the 54.1 average.
Conclusion:
The Indian stock market faced profit booking in the third trading session of 2025, with Nifty holding critical levels despite selling pressure in key sectors like IT, pharma, and private banking. Investors remain cautiously optimistic as the Q3 earnings season approaches. Broader markets continued to outperform benchmarks, signaling opportunities for selective growth.
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