WPI Inflation, India–US Trade Talks, Rupee Movement Likely to Drive Markets Next Week

Mumbai: After benchmark indices ended the week on a strong note, Indian equity markets are expected to take cues next week from a combination of key domestic and global factors, including wholesale price inflation data, developments in India–US trade talks, movements in the rupee, and continued foreign investor activity.

On Friday, the Sensex advanced 450 points, or 0.53 per cent, to close at 85,267.66, while the Nifty gained 148 points, or 0.57 per cent, to settle at 26,046.95.

The broader markets outperformed the benchmarks, with the BSE Midcap index rising 1.14 per cent and the Smallcap index climbing 0.65 per cent.

Investor wealth also saw a significant jump during the session. The total market capitalisation of BSE-listed companies surged to over Rs 470 lakh crore, up from Rs 466.6 lakh crore in the previous session, adding more than Rs 3 lakh crore in a single day.

Looking ahead, inflation data is expected to be one of the key market triggers next week. The Ministry of Commerce and Industry is scheduled to release wholesale price inflation (WPI) data for November on December 15.

Developments on the India–US trade front will also remain in focus. According to reports, India and the United States have agreed to continue constructive and forward-looking engagement following two days of discussions between an Indian delegation and a US team led by Deputy US Trade Representative Rick Switzer. The talks covered key trade issues and ongoing negotiations aimed at finalising a mutually beneficial bilateral trade agreement, with potential long-term implications for trade-sensitive sectors.

The movement of the rupee will be another important factor to watch. Persistent foreign investor outflows, uncertainty surrounding the India–US trade deal, and strong dollar demand from importers have kept the domestic currency under pressure.

Foreign investor activity continues to be a concern for the markets. Foreign portfolio investors have remained net sellers throughout 2025 and are close to recording the second-highest number of net selling days in the past two decades.

Commenting on the Nifty outlook, market experts said that immediate resistance on the upside is placed at 26,200, followed by 26,400 and 26,500. On the downside, support is seen at 25,900 and then 25,800, with a break below 25,700 likely to invite additional selling pressure.

— With inputs from IANS