Markets brace for another cautious start on December 09, 2025, following a sharp sell-off, with focus on Fed anxiety and domestic volatility.

Key Themes & Picks

• GIFT Nifty points to a gap-down opening after Monday's steep correction.

• Volatility spikes in mid/small-caps; banking under regulatory scrutiny.

• Infrastructure and select IT stocks show relative resilience.

• Calls: Buy Latent View (IT), Buy KNR Constructions (Infra).

• Bearish view persists on State Bank of India (Sell).

The Indian markets exhibited bearish sentiment on December 08, 2025, with sharp declines in major indices driven by profit booking, persistent FII outflows, and rupee depreciation near record lows. Global cues, including anxiety over the upcoming US Federal Reserve decision, added to the volatility, overshadowing recent RBI rate cut benefits. Overarching themes focused on market corrections, corporate mergers, and sector-specific pressures amid broader economic uncertainties.

• Sensex and Nifty post worst day in months on FII selling.
• Investor wealth erodes by over ₹7 lakh crore in single session.
• IndiGo shares crash amid operational disruptions and market caution.
• US stocks dip ahead of anticipated Fed rate decision.
• Trump announces $12 billion aid for disrupted US farmers.

Indian markets face a muted start on December 08, 2025, balancing global caution with domestic liquidity support and sector-specific opportunities.

Key Themes & Picks

• Flat opening indicated by Gift Nifty, with mixed global cues.

• Domestic sentiment supported by RBI's recent rate cut and liquidity infusion.

• Financials and autos show strength; IT/pharma act as defensive plays.

• Stock picks: Indus Towers (Buy), L&T, and Maruti Suzuki highlighted.

• Monitor IPO activity and sector rotation from commodities to banks.