India Stock Market Today (December 22, 2025): Sensex, Nifty Close Higher as IT, Financials Lead; Rupee Volatility Still in Focus

India’s stock market extended its rebound on Monday, December 22, 2025, with benchmark indices finishing in the green amid broad-based buying across sectors, renewed optimism around foreign flows, and continued focus on currency moves after last week’s sharp rupee swings.

By the close, the BSE Sensex ended at 85,422.47, up 0.58%, while the NSE Nifty 50 settled at 26,117.60, also up 0.58%. ^[1]

The rally came in a holiday-shortened trading week (with Indian exchanges shut on December 25 for Christmas), a period that often brings thinner volumes—but this time with a clear push higher led by information technology and financials, alongside strength in metals and selective mid- and small-cap counters. ^[2]

Sensex and Nifty today: Closing snapshot and key levels

Monday’s session saw a steady upward bias, with both indices holding gains into the close.

Sensex close: 85,422.47 (+0.58%)
- Day’s range: 85,145.90 – 85,466.14 ^[3]
Nifty 50 close: 26,117.60 (+0.58%)
- Day’s range: 26,055.65 – 26,152.40 ^[4]

Broader participation remained supportive earlier in the day as well, with Reuters noting all 16 major sectors trading higher at one point, alongside gains in broader indices. ^[5]

Why the Indian stock market rose today: What changed on Dalal Street

Several narratives converged on December 22, helping risk appetite improve after a choppy stretch driven by currency weakness and concerns about foreign outflows.

1) A “rupee factor” rebound improved sentiment—despite ongoing volatility

Equities took heart from the rupee’s recovery below the 90-per-dollar mark late last week, after the currency hit an all-time low earlier in December. In early trade on Monday, the rupee slipped from a one-month peak and was quoted around 89.60 per U.S. dollar, but the broader message for equity traders was that RBI intervention has become more forceful, reducing the odds of a one-way slide. ^[6]

Mint also pointed to the rupee rebound and foreign fund flows as key drivers behind the market’s two-session jump. ^[7]

2) Signs of returning foreign flows (FPI/FII) supported the upmove

Foreign portfolio investors were net buyers of Indian shares worth ₹18.31 billion on Friday, taking net purchases to ₹37.76 billion over the last three sessions, according to Reuters’ report citing provisional data. This helped ease one of the market’s biggest near-term concerns: persistent foreign selling amid the rupee’s depreciation. ^[8]

3) Policy and rate-cut expectations came back into the conversation

Minutes from the Reserve Bank of India’s December policy meeting suggested that if growth moderates next year while inflation remains subdued, more rate cuts could be possible, which markets generally treat as supportive for equities—especially rate-sensitive segments. ^[9]

Global cues also helped: several market reports highlighted expectations around further easing in the U.S. rate cycle as part of the broader risk-on tone. ^[10]

4) Technical positioning: the market looked primed for a year-end bounce

Reuters cited market commentary suggesting a potential year-end rally, with a combination of rupee stabilization and foreign inflows potentially triggering short covering. ^[11]

Top gainers and stocks in focus today

From large-cap IT to financials and metals, stock-specific headlines played an outsized role in shaping intraday leadership.

Infosys jumps after ADR volatility, clarification

Infosys was among the most discussed names on Monday after a sharp move in its U.S.-listed ADRs late last week. The company clarified that there were no material events requiring disclosure after volatility-driven surges and halts in ADR trading, while the stock gained in India. ^[12]

Shriram Finance hits new highs on MUFG stake optimism

Shriram Finance rallied as brokerages reacted positively to MUFG’s 20% investment, with reports highlighting expectations of balance-sheet strengthening and potential rating benefits—fueling upgrades and higher target prices from multiple firms. ^[13]

GE Vernova T&D India surges on multi-year HVDC contract

GE Vernova T&D India jumped after it secured a multi-year contract for high-voltage direct current (HVDC) infrastructure, according to Reuters. ^[14]

Hindustan Zinc rises with silver at record highs

Hindustan Zinc gained as silver prices pushed to fresh records in 2025, with the company seen as a beneficiary given its silver production exposure and commentary around the silver market remaining tight. ^[15]

Varun Beverages climbs after Twizza acquisition plan

Varun Beverages moved higher after its board approved the acquisition of South Africa-based Twizza at an enterprise value of about ₹1,118.7 crore, with at least one brokerage (Citi) flagging upside potential in reaction to the deal. ^[16]

Bondada Engineering rallies on ₹945 crore solar order

In the broader market, Bondada Engineering saw a sharp move after news it won an order worth about ₹945 crore from NLC India Renewables for solar project balance-of-system work. ^[17]

Business Standard’s live coverage also highlighted strength in pockets of the broader tape, while noting that IT and metal indices led sectoral gains during the session. ^[18]

Rupee and bonds: Why currency volatility is still the market’s pressure point

While equities rose, currency and rates remain central to the near-term market narrative—especially because FX volatility can influence foreign flows, imported inflation expectations, and hedging costs.

Rupee pulls back from a one-month high; forward premiums stay elevated

Reuters reported the rupee fell from its recent highs amid dollar demand in the non-deliverable forwards (NDF) market and increased corporate hedging interest. It also noted forward premiums stayed “on the boil”, with the one-month premium around 43 paise and the one-year implied yield near 2.89%, both hovering around multi-year highs—an important development for corporates managing currency risk. ^[19]

RBI liquidity actions and bond yields remain in focus

In rates, Reuters pointed to bond market attention on RBI cues and offshore flows, noting the 10-year benchmark yield traded in a watched range and that market participants were tracking RBI liquidity moves (including injections through debt purchases and FX swaps). ^[20]

Market outlook and forecasts: Nifty 50 and Bank Nifty levels to watch next

With the market attempting to build on a rebound, traders are closely watching key breakout levels and downside supports.

Nifty 50: 26,100 remains the “line in the sand” for momentum

Moneycontrol’s trading plan framed 26,100 as a pivotal level:

A close above 26,100 could invite fresh buying and open the path toward 26,350–26,500.
Key supports were highlighted around 25,800–25,700 (with deeper downside levels if that breaks). ^[21]

Reuters also cited a similar technical zone, noting that Nifty needs to clear the 26,050–26,200 area to improve conviction for further upside. ^[22]

Bank Nifty: Consolidation range still in play

Goodreturns’ outlook suggested Bank Nifty remains in a consolidation/base-building phase, with a range of roughly 58,500–60,100 in focus. A sustained move above 59,500 could bring a retest of the recent highs, while support was placed around 58,300–58,600. ^[23]

Volumes may be muted, but triggers are not

As The Times of India noted in its weekly outlook, foreign flows, currency movement, and global macro data are expected to remain the key drivers through a holiday-disrupted week. ^[24]

Bigger picture forecast: ICICI Direct’s 2026 targets in the spotlight

Among the more widely circulated forecasts published today, ICICI Direct projected a stronger phase for Indian equities into 2026, targeting:

Nifty 50 at 29,500 by December 2026
Sensex at 98,500 (as part of the same strategy framework)

The note tied its outlook to an expected earnings revival, supportive macro conditions, and valuations it views as more reasonable across segments. ^[25]

Other major headline risk today: India–New Zealand free trade agreement

Beyond markets, a significant macro headline on December 22 was the announcement that India and New Zealand concluded a Free Trade Agreement aimed at boosting bilateral trade, including tariff reductions and an investment commitment highlighted in early reporting. While not the primary driver of today’s equity move, trade headlines can influence sector narratives—especially exporters and companies with cross-border exposure. ^[26]

What to watch on Tuesday, December 23: Cues that can move “India stock market tomorrow”

Looking ahead, the market’s near-term direction is likely to be shaped by a familiar trio:

FPI flow follow-through after the recent buying streak ^[27]
Rupee direction and RBI stance, especially given elevated forward premiums and lingering FX volatility ^[28]
Global macro releases (notably U.S. data scheduled for Dec 23 in India time, per Reuters’ calendar) that can influence the dollar, yields, and risk appetite ^[29]

And operationally: Indian markets will trade a shortened week, with the NSE holiday calendar listing December 25, 2025 (Thursday) as a trading holiday. ^[30]

Bottom line

The India stock market today delivered a constructive close, with the Sensex and Nifty rising ~0.6% as IT and financials led a broad-based recovery. The key question for Dalal Street now is whether foreign inflows and rupee stabilization can persist long enough to push the Nifty decisively beyond the 26,100 zone—or whether holiday-thinned volumes and lingering FX volatility will keep the market range-bound into year-end. ^[31]