As India enters the final month of 2025, investor sentiment remains upbeat on expectations that the stock market will continue its historical pattern of strong December performance. Seasonal trends have typically favoured bulls, and analysts believe the market is positioned for potential upside—provided key triggers align.

On Friday, however, the Indian markets ended flat, with traders booking profits ahead of Q2 GDP data and global cues offering little support.

Market Closing Snapshot

• Sensex: 85,706.67 (–14 points, –0.02%)
• Nifty 50: 26,202.95 (–13 points, –0.05%)
• BSE Midcap: –0.04%
• BSE Smallcap: –0.13%

📈 How the Market Has Performed in December (Last 10 Years)

Nifty 50: 6 Positive Years, 4 Negative

Historical data shows that Nifty 50 has delivered gains in 6 out of the last 10 Decembers, averaging over 1.6% positive returns.

Years Nifty ended positive:
2015, 2017, 2019, 2020, 2021, 2023

Years Nifty ended negative:
2016, 2018, 2022, 2024

Worst decline:
–3.48% in 2022

Best December rally:
+7.94% in 2023
Close second: +7.81% in 2020

Midcap & Smallcap Outperformance

• Nifty Midcap: Positive in 7 out of 10 years; avg return 2.1%
• Nifty Smallcap: Positive in 8 out of 10 years; avg return 2.8%

Best-Performing Sectors in December

Historically strong sectors include:

• Metals: +4.3% average
• Real Estate: +3.9%
• IT: +3.7%

Sectors with moderate growth:

• FMCG
• Energy
• Auto
• Pharma
• Banking

🔮 Stock Market Outlook for December 2025

According to Ponmudi R (CEO, Enrich Money), upcoming domestic and global events will play a crucial role in determining whether the current rally can extend further.

Technical Views

📌 Sensex

Sensex is consolidating below its lifetime high:

• Trading zone: 85,700
• Breakout above 86,000 → Rally toward 86,700–88,000
• Break below 85,500 → Correction toward 85,200–84,850
• Broader trend remains positive and constructive

📌 Nifty 50

The index is in tight consolidation before its next move:

• Range: 26,150–26,300
• Support zone: 26,150–26,000 (remains intact = bullish structure)
• Resistance: 26,450–26,600
• Derivatives positioning signals bullish undertone

📌 Bank Nifty

Holding well above key support levels:

• Support zone: 59,500–59,600
• Break below → 59,000–58,600
• Sustaining above 59,600 may push index toward 60,000–61,000+

A star-doji candle on Friday signals short-term indecision but does not weaken the broader uptrend.

⚠️ Disclaimer

This article is for educational purposes. Market views belong to respective analysts. Investors should consult certified financial experts before making investment decisions.