Indian Stocks Extend Rebound as IT, Metals Rally; Rupee Weakens

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

By Dehuti Jani

December 22, 2025 at 11:50 AM IST

Indian equity benchmarks rose sharply on Monday, extending the rebound for a second straight session as optimism around foreign investors potentially turning buyers after an aggressive selloff earlier this month lifted sentiment. A firmer rupee, improving global cues and expectations of further US Federal Reserve rate cuts early next year supported risk appetite. The Nifty 50 gained 0.79% to 26,172.4, while the BSE Sensex advanced 0.75% to 85,567.48.

The rally was broad-based, with 15 of the 16 major sectors ending higher, led by information technology and commodity-linked stocks, which rose 2.1% and 1.4%, respectively, while consumer durables slipped marginally. Buying interest in IT and metal stocks anchored the benchmarks, aided by optimism surrounding the signing of the India–New Zealand free trade agreement. On the BSE, Trent, Infosys and Bharti Airtel were the top gainers, while SBI, Kotak Mahindra Bank and L&T lagged. On the NSE, Trent, Shriram Finance and Wipro led gains, while HDFC Life, Tata Consumer and SBI weighed on the index.

Top Movers of the Day
Several stocks hit new all-time highs, including Ashok Leyland, India Cements, Laurus Labs, MCX, and TVS Motor Company. Financials such as Federal Bank, Mahindra Finance, and Shriram Finance, along with metals like Hindalco, NALCO, and Vedanta, also traded at fresh highs, reflecting broad-based strength across sectors.

Kinetic Engineering surged nearly 15%, hitting an intraday high of ₹314, after its subsidiary Kinetic Watts and Volts announced a technology partnership with JioThings to add connected and digital features to its electric two-wheelers. The stock later pared gains but still traded firmly higher.

Jupiter Wagons jumped 12.2% to an intraday high of ₹292 on the BSE after the company’s promoter increased his stake, triggering strong buying interest.

Billionbrains Garage Ventures (Groww’s parent) rallied up to 7% to ₹172, extending gains to a third straight session and taking its three-day rise to over 20%, backed by strong investor interest.

R R Kabel touched an all-time high of ₹1,563.10, gaining about 5% on a healthy outlook. The stock is up 15% in two weeks and 25% over two months, supported by record half-yearly revenue and robust profitability.

Hindustan Construction Company jumped over 11%, hitting ₹20.70, its highest level since early December, after a major order win. The stock has gained nearly 20% over the past three sessions.

KEC International advanced more than 7% after the Delhi High Court put Power Grid Corporation’s bidding ban in abeyance, lifting sentiment around future order prospects.

Knowledge Marine & Engineering Works soared 17% to a fresh high of ₹1,939, as the stock turned ex–split following a 1:1 stock split.

Hindustan Zinc gained over 3%, extending its month-long rally beyond 25%, tracking a sharp surge in silver prices. The stock hit its highest level since August 2024.

Emmvee Photovoltaic Power rose about 6% after its group company commenced operations at a 2.5 GW solar module line in Karnataka.

RITES shares were in demand, gaining nearly 3% to an intraday high of ₹233.32 on the NSE after the company announced the signing of a Memorandum of Understanding with the Government of Botswana, strengthening its international project pipeline.

Futures & Options
Nifty December 2025 futures settled at 26,201.40, trading at a premium of 29 points over the Nifty’s cash market close of 26,172.40. The NSE India VIX edged up 1.60% to 9.68, indicating a marginal rise in near-term volatility expectations. Infosys, Shriram Finance and HDFC Bank emerged as the most actively traded individual stock futures in the NSE’s F&O segment.

Bonds
Indian government bond yields rose at the start of the holiday-shortened week as persistent supply concerns and a larger-than-expected state borrowing plan weighed on sentiment. The benchmark 10-year yield climbed to 6.6678%, up from 6.6017% on Friday, extending the post-policy rise in yields despite the RBI’s 25-basis-point rate cut earlier this month. Traders remained cautious ahead of the quarter-end, with sustained debt supply pressuring bond prices and pushing yields higher. Adding to the supply overhang, states are set to raise ₹332.2 billion via bond sales on Tuesday nearly 25% higher than the scheduled ₹268.55 billion reinforcing upward pressure on yields.

Forex
The rupee weakened on Monday, snapping a three-session winning streak, as renewed dollar demand from local corporates and pressure from the non-deliverable forwards market pared gains from recent central bank support. The currency closed at 89.65 per US dollar, down 0.4% on the day, after having touched a near one-month high of 89.25 on Friday. Intraday, the rupee traded in a narrow 89.45–89.72 range, with increased importer hedging limiting further appreciation despite remaining comfortably on the stronger side of the 90 level.

Crypto
Crypto markets remained calm, with Bitcoin holding firmly above the $89,000 level as traders focused on year-end positioning. BTC was trading near $89,441, up just over 1% on the day, showing resilience despite renewed competition from traditional safe-haven assets. Ethereum followed a similar trend, hovering around $3,032 with modest gains, while most large-cap altcoins posted controlled, low-volatility moves.

US Stock Futures
US stock futures edged higher early Monday as Wall Street entered a holiday-shortened week, with sentiment pulled in two directions renewed momentum in mega-cap AI stocks on one side, and risk-off signals from commodities on the other as gold and silver climbed to fresh record highs. Attention is also turning to a delayed batch of US economic data due Tuesday, including third-quarter GDP and durable goods orders.

US Treasury Notes
US Treasury yields rose in a holiday-shortened week, with the benchmark 10-year yield rising about 1 basis point to around 4.17%, retracing part of last week’s decline. The move reflects spillover pressure from higher Japanese government bond yields following recent Bank of Japan rate hikes. Investors are closely watching this week’s key auctions, including a $69 billion sale of 2-year notes later today, followed by $70 billion of 5-year notes on Tuesday and $44 billion of 7-year notes on Wednesday, which are expected to set the tone for near-term yield direction.

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