Published on: 18 Dec, 2025 08:30

Markets anticipate a cautious, flat-to-negative opening on December 18, 2025, amid global tech weakness, FPI outflows, and safe-haven demand.

Key Themes & Picks

  • GIFT Nifty points to a soft open following global risk-off sentiment.

  • IT sector in focus with Infosys upgraded to Buy on AI optimism.

  • Renewable energy gains traction after major international agreements.

  • Vedanta and KPI Green Energy highlighted as key picks.

  • Rising crude oil prices support energy stocks amid geopolitical tensions.

The Indian stock market is poised for a cautious start on December 18, 2025, amid global headwinds and persistent foreign portfolio investor (FPI) outflows. Overnight, US indices like the Dow Jones and Nasdaq tumbled amid renewed concerns over AI spending and tech valuations, with Dow futures signaling further weakness. Asian markets, including Nikkei and Hang Seng, opened lower, reflecting risk-off sentiment. Domestically, GIFT Nifty futures hovered around 25,871-25,892, indicating a flat to mildly negative open for Nifty 50 and Sensex, down about 0.02-0.06% from previous closes. Crude oil reclaimed $60/bbl on geopolitical tensions, providing a boost to energy stocks, while gold and silver rose as safe-havens. Key themes today include IT sector resilience amid AI optimism, renewables push with fresh MoUs, and rail/infra orders. We found over 30 fresh recommendations from analysts like Vaishali Parekh, Sumeet Bagadia, and Religare Broking. Standout calls: Infosys upgraded to Buy with a ₹1,710 target, Vedanta seen favorable with +61 sentiment score, and KPI Green Energy in focus post-$4B Botswana tie-up.

Index Outlook

Indian indices are expected to trade sideways-to-downward, with Nifty 50 facing immediate support at 25,700-25,750 and resistance at 26,000 amid weak global cues and FPI selling pressure. A bearish candle on the daily chart signals potential downside toward 25,500 if breached, while upside is capped by yen carry trade fears and tech sell-offs. Sensex may mirror this, with expected open around 84,500-84,800. Bank Nifty remains under pressure from FPI outflows but could find support from domestic credit growth. Overall outlook is neutral-to-bearish, with volatility likely on Nifty weekly expiry.

Index Recommendation Target/Range Key Driver Source
Nifty 50 Neutral-Hold 25,700-26,000 Weak global cues, FPI outflows ET Markets
Sensex Cautious 84,500-85,200 Tech sell-off, Asia lower Business Standard
Bank Nifty Hold 54,000-55,000 Credit partnerships, RBI watch Moneycontrol

Sector-Wise Stock Picks

Banking & Financials

Banking stocks are in focus amid new credit partnerships and regulatory nods, but FPI outflows weigh. M&M Financial Services sees buy calls on strong rural demand.

  • Mahindra & Mahindra Financial Services (M&MFIN.NS) – Buy, Target: ₹360 (Upside: ~8%), Rationale: Breakout above key resistance with high volumes; rural recovery expected. Source: Sumeet Bagadia, Mint.
  • Axis Bank (AXISBANK.NS) – Accumulate, Target: ₹1,250 (Upside: ~5%), Rationale: UPI-linked credit card launch with Google to boost digital lending. Source: Stocks to Watch, Business Standard.
  • PNB Housing Finance (PNBHOUSING.NS) – Hold, Target: ₹950 (Upside: ~3%), Rationale: New CEO appointment signals stability; affordable housing push. Source: Sharad Dubey, X.

IT & Tech

IT leads with AI optimism from TCS analyst meet and HCLTech partnerships. Infosys upgraded on earnings strength.

  • Infosys (INFY.NS) – Buy, Target: ₹1,710 (Upside: ~7%), Rationale: Strong momentum post-rally; AI deals to drive growth. Source: Religare Broking, Business Standard.
  • HCL Technologies (HCLTECH.NS) – Buy, Target: ₹1,850 (Upside: ~6%), Rationale: Strategic IT partner for ASN Bank; digital economy focus. Source: Stocks to Watch, Moneycontrol.
  • Tata Consultancy Services (TCS.NS) – Accumulate, Target: ₹4,500 (Upside: ~5%), Rationale: Targets 26-28% margins via AI; world's largest AI services ambition. Source: Market Pulse, X.
  • Cyient (CYIENT.NS) – Buy, Target: ₹2,200 (Upside: ~10%), Rationale: Acquisition of Kinetic Technologies boosts semiconductor exposure. Source: Plus Trades, X.

Energy & Metals

Energy shines with crude rebound and renewables MoUs. Vedanta tops sentiment scores.

  • Oil & Natural Gas Corporation (ONGC.NS) – Buy, Target: ₹280 (Upside: ~5%), Rationale: Intraday pick on weak market sentiment; oil price support. Source: Vaishali Parekh, Mint.
  • Vedanta (VEDL.NS) – Buy, Target: ₹550 (Upside: ~22%), Rationale: Favorable sentiment (+61); aluminum demand up. Source: ET Markets.
  • KPI Green Energy (KPIGREEN.NS) – Accumulate, Target: ₹1,000 (Upside: ~15%), Rationale: $4B MoU with Botswana for 5GW renewables. Source: Snehi Shah, X.
  • NTPC (NTPC.NS) – Hold, Target: ₹400 (Upside: ~4%), Rationale: Commercial ops of 38MW solar at Khavda; capacity hits 85,541MW. Source: Market Pulse, X.

Industrials & Infra

Rail and infra gain from orders; Titagarh leads.

  • Titagarh Rail Systems (TITAGARH.NS) – Buy, Target: ₹1,600 (Upside: ~10%), Rationale: ₹273Cr railway order; first safety/signaling win. Source: Plus Trades, X.
  • Larsen & Toubro (LT.NS) – Buy, Target: ₹4,000 (Upside: ~8%), Rationale: Favorable (+45 sentiment); infra projects. Source: DarwinKnows AI, X.
  • GMR Power & Urban Infra (GMRP&UI.NS) – Accumulate, Target: ₹150 (Upside: ~12%), Rationale: ₹1,200Cr capital raise approved. Source: Moneycontrol.

Pharma & Healthcare

Glenmark and AstraZeneca in spotlight.

  • Glenmark Pharmaceuticals (GLENMARK.NS) – Buy, Target: ₹1,600 (Upside: ~10%), Rationale: Identified as top pick; pipeline strength. Source: MSN.
  • AstraZeneca Pharma India (AZN.NS) – Hold, Target: ₹7,000 (Upside: ~5%), Rationale: Approval for oncology drug import. Source: Anand Ganapathy, X.

Consumer & Others

FMCG and auto mixed.

  • Grasim Industries (GRASIM.NS) – Buy, Target: ₹2,650 (Upside: ~4%), Rationale: Intraday on textile recovery. Source: Vaishali Parekh, Mint.
  • India Cements (INDIACEM.NS) – Buy, Target: ₹310 (Upside: ~6%), Rationale: Bullish breakout. Source: Business Standard.
  • Tata Power (TATAPOWER.NS) – Buy, Target: ₹500 (Upside: ~15%), Rationale: Renewables portfolio key driver. Source: ET Markets.

Global & Thematic Insights

Global brokerages like Morgan Stanley maintain overweight on India for 2025, citing robust GDP growth and private equity opportunities in midcaps, though dated to earlier outlooks. Thematically, renewables surge with KP Group's $4B Botswana MoU and NTPC's solar ops. BSE/NSE announcements highlight analyst meets for stocks like Reliance and Trent, implying potential upgrades. Cross-border views emphasize AI-led IT and infra value.

Conclusion & Disclaimer

Overall market sentiment leans neutral-bearish amid global sell-offs, but stock-specific positives in IT, energy, and infra offer opportunities. Investors should watch KPI Green Energy and Infosys for upside. This is a pre-market snapshot—updates may evolve. This aggregated data is for informational purposes; consult a financial advisor. Not investment advice.

Sources & Citations



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