Stock Market Outlook, 12 December 2025: Nifty, Sensex Today Likely to Consolidate After Fed Rate Cut

Indian stock markets are likely to begin 12 December 2025 on a cautious note, following a sharp recovery in the previous session. The U.S. Federal Reserve's 25-basis-point rate cut provided a much-needed boost to investor sentiment, reversing the three-day decline in benchmark indices. However, with foreign fund outflows continuing and domestic triggers limited, analysts expect the market to consolidate within a defined range rather than extend the rally aggressively.

Stock Market Outlook Today, 12 December 2025; Will Fed Rate Cut Decision Impact Nifty50, Sensex Trading?

At the close, the Sensex rose 426.86 points, or 0.51%, to 84,818.13, while the Nifty50 gained 140.55 points, or 0.55%, to 25,898.55. Broader market indices also performed well, with the midcap index up 0.9% and the small-cap index rising 0.8%. Sectoral momentum was broad-based, with autos, IT, pharma, telecom, PSU and private banks, metals, and realty recording gains between 0.5-1%.

"Indian equities traded higher on Thursday, with the Nifty snapping a three-session slide to end 0.5% higher, after the U.S. Federal Reserve delivered a widely anticipated 25-basis-point rate cut-a move investors hope will help temper foreign outflows," said Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.

He added that while the Fed's dovish stance supported markets, volatility may persist in the coming days due to continuous foreign fund selling and ongoing uncertainty around India-US trade negotiations.

Foreign Institutional Investors (FIIs) remained net sellers for the tenth consecutive session, offloading equities worth Rs 1,651 crore, while Domestic Institutional Investors (DIIs) infused Rs 3,752 crore into the market. Investors are now closely watching key global and domestic data, including U.S. initial jobless claims, India CPI and UK GDP figures, which could influence short-term market direction.

Nifty Prediction Today; What Traders Can Expect Today?

According to Bajaj Broking Research, the Nifty formed a bullish candle on 11 December, with a long lower shadow indicating strong buying interest around the 25,700 support area. "Key support lies around 25,700-25,800, which aligns with the bullish gap from November 12, the 50-day EMA, and a key retracement zone of the prior uptrend. Sustaining above this band will be crucial for continuation of the positive momentum of the last three months," the brokerage noted.

Bajaj Broking expects the Nifty to trade in a 25,700-26,200 consolidation range today. Immediate resistance is seen at 25,950-26,000, while a break above 26,000 could open the upside towards 26,200. "A clear breakout or breakdown will determine the next directional move for the index," the report added.

Bank Nifty Outlook for 12 December 2025

Bank Nifty also displayed bullish consolidation around the 20-day EMA. "The index is forming a base in the 58,500-60,100 range. Key short-term support is placed at 58,200-58,600 levels, while resistance is at 59,500. The major hurdle remains at the recent all-time high of 60,100. The index may continue its consolidation before taking directional cues from global developments and domestic fund flows," Bajaj Broking said.

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