Last week (December 8–12, 2025) saw mixed trends in global and Indian stock markets. While the US markets faced pressure in technology and high-growth stocks, Indian markets closed the week with a slight recovery and positive momentum. Investors closely monitored global economic indicators, monetary policies, and interest rate trends. In this article, we analyze the key reasons behind market movements, highlight major stock performances, and provide insights into potential trends for the upcoming week.
United States: Tech Pressure Amid Dow Strength
Major US stock indices exhibited mixed performance last week:
- S&P 500 fell by approximately 0.6%.
- Nasdaq Composite declined by about 1.6% due to selling pressure in technology stocks.
- Dow Jones Industrial Average remained relatively strong, gaining around 1%.
Experts note that the decline was primarily due to weak forecasts from technology and AI-related companies, including Broadcom. Investors became cautious, impacting tech-heavy indices.
Key Factors:
- Pressure in technology stocks: AI and other high-growth stocks experienced selling, weighing on Nasdaq.
- Market rotation: Investors shifted from high-risk tech stocks toward defensive and value sectors.
- Federal Reserve policy: Potential interest rate decisions kept investors cautious.
Treasury yields slightly increased last week, adding pressure on riskier assets. Investors were drawn toward higher-yielding investments, while tech stocks experienced selling.
Performance of Major US Companies
- Apple and Microsoft: Slight declines due to investor concerns in the tech sector.
- Broadcom: Declined following weaker-than-expected earnings forecasts.
- Coca-Cola and Johnson & Johnson: Relatively stable, supporting Dow’s strength.
The week highlighted investor caution, particularly in high-growth and technology sectors.
India: Mixed Start, Positive Week-End
Indian stock markets began the week under mild pressure but ended with positive momentum:
- BSE Sensex closed up by 0.53%.
- NSE Nifty 50 gained approximately 0.55%.
Analysts attribute the positive finish to domestic investor activity and slight recovery in foreign investment sentiment.
Key Stock Performances
- Tata Steel: Gained +3.34%, leading sector performance.
- Bajaj Finance: Rose about +1.15%.
- Reliance Industries: Marginal increase, slightly underperforming some large-cap peers.
While mid-cap and small-cap indices faced minor pressure, particularly in defense and specialty sectors, overall Sensex and Nifty ended on a positive note.
Impact of Global Factors
Global factors influenced the Indian market significantly:
- US Federal Reserve signals: Anticipated interest rate decisions affected investor sentiment.
- Strength of the US dollar: Dollar strength impacted foreign investor outlook.
- RBI policies: Domestic liquidity and banking regulations helped maintain stability.
These trends indicate that Indian markets are influenced by a combination of domestic and global factors.
US vs. India: Market Comparison
| Aspect | United States | India |
| Weekly Trend | Mixed, tech sector decline | Positive close after mixed trends |
| Main Drivers | Tech stock selling, Fed policy, rising Treasury yields | Global signals, RBI policies, domestic investor sentiment |
| Investor Sentiment | Cautious and balanced | Positive and stable |
Outlook for the Upcoming Week
United States:
- Fed decisions and interest rate direction will influence technology and risk assets.
- Earnings and forecasts from AI and tech companies will remain key drivers.
India:
- RBI monetary policy, foreign investment inflows, and USD/INR movement will guide market direction.
- Domestic large-cap and value stocks may provide support and growth potential.
Outcome
Last week, both US and Indian markets showed mixed signals. US markets experienced tech-driven pressure and cautious investor sentiment, while India benefited from a combination of domestic policies and global factors, leading to slight recovery and positive closing.
Investors should monitor global economic indicators, interest rate trends, and corporate earnings this week. The market presents opportunities and risks, emphasizing the need for cautious and strategic investment approaches.
Source: Analysis based on market research and latest financial data.
