Equities Slip as Investors Await Fed Decision

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

Front entrance of the Marriner S. Eccles building built in 1937.

US Federal Reserve

By Dehuti Jani

Dehuti Jani is an experienced project manager who also works as an independent financial journalist.

December 10, 2025 at 12:00 PM IST

Indian benchmark indices ended lower on Wednesday as investors turned cautious ahead of the US Federal Reserve’s monetary policy announcement tonight. The BSE Sensex fell 275.01 points or 0.32% to 84,391.27, while the Nifty50 declined 81.65 points or 0.32% to 25,758.

On the Sensex, Tata Steel, Sun Pharma and ITC emerged as the top gainers, while Eternal, Trent and Bharti Airtel were the biggest drags. Sectorally, metals led the uptrend, supported by sustained risk appetite, while FMCG, pharma, realty and healthcare displayed steady resilience indicating selective rotation into defensives and consumption plays. Banks, financials and IT saw mild pressure as traders booked profits and trimmed positions ahead of key global cues.

Adding to domestic sentiment, the Asian Development Bank sharply upgraded India’s FY26 growth forecast to 7.2% from 6.5%, citing stronger-than-expected Q2 expansion and robust consumption supported by recent tax cuts. The upgrade also boosts Asia’s projected growth to 5.1% for 2025, up from the earlier 4.8%.

Top Movers of the Day

Reliance Industries gained 1% to hit an intraday high of ₹1,547.50, outperforming a weak market. The stock has surged 27% YTD, far ahead of the 8% rise in the Sensex, driven by strong sentiment across its consumer and energy businesses.

Godrej Industries rose 1.6% after its subsidiary signed an MoU with the Telangana government to invest ₹150 crore in a new dairy processing facility.

SpiceJet rallied 5%, extending its winning streak to the fourth straight session (up 19% in four days). The airline continues to benefit from sectoral disruption as IndiGo, facing acute pilot shortages, cuts flights shifting incremental demand to rivals. SpiceJet also announced the induction of two Boeing aircraft, boosting capacity.

Groww slipped 3.7% as selling pressure emerged with the expiry of a one-month shareholder lock-in.

Vodafone Idea gained another 3%, extending its two-day rally to 8%, supported by heavy volumes. Analysts expect 12% ARPU CAGR for FY25–28, driven by sector consolidation and Jio’s higher tariff requirements ahead of its planned H1CY26 IPO.

AU Small Finance Bank surged 4% to a new 52-week high of ₹1,007.65 after the government raised its foreign investment limit from 49% to 74%, bringing it in line with private banks.

Adani Green Energy rose about 2% after a ₹2,718 crore block deal, where 28 million shares (1.7% equity) changed hands at an average of ₹970.

Kaynes Technology fell 9% to ₹3,960, despite issuing clarifications on recent concerns flagged by Kotak Institutional Equities. The stock had rebounded 21% on Tuesday after touching a 52-week low.

Vidya Wires jumped 12% after a flat listing, while Aequs gained 8% following a debut at a 13% premium. Meesho delivered a blockbuster listing at ₹161.20, a 45% premium to its issue price of ₹111.

Sammaan Capital spiked 9% after the CCI approved Avenir Investment RSC’s bid to acquire a controlling stake.

Futures & Options
Nifty December 2025 futures closed at 25,857, trading at a 99-point premium to the Nifty’s cash close of 25,758. India VIX eased 0.36% to 10.91, reflecting subdued near-term volatility. Kaynes Technology India, InterGlobe Aviation (IndiGo) and Dixon Technologies were the most actively traded stock futures in the session. The December 2025 F&O contracts will expire on 30 December 2025.

Bonds
Indian government bond yields moved higher on Tuesday, with the 10-year benchmark closing at 6.6283%, extending the recent upward momentum as markets reassessed expectations of further RBI easing after the central bank’s 25 bps rate cut last week. Traders remained cautious amid shifting rate expectations and continued pressure from the rupee. Meanwhile, the RBI’s Treasury Bills auction saw robust demand across all three maturities. The 91-day, 182-day, and 364-day T-bills drew bids far exceeding supply, resulting in cut-off yields of 5.2702%, 5.4785%, and 5.4949% respectively, indicating firm appetite for short-term sovereign debt even as longer-tenor yields drifted higher.

Forex
The rupee weakened marginally on Wednesday, ending a volatile session shaped by portfolio flows, likely NDF position maturities, and caution ahead of the US Federal Reserve’s policy decision. The rupee closed at 89.9650 per dollar, slightly softer than 89.8750 in the previous session. Intraday trade saw the currency oscillate within a 89.77–90.08 range, stabilising modestly after last week’s record low of 90.42.

Crypto
Crypto markets were buoyant on Wednesday as Bitcoin briefly reclaimed the $94,000 level, reinforcing its short-term bullish structure ahead of US Federal Reserve Chair Jerome Powell’s rate-cut decision later today. Ethereum also extended its outperformance, trading near two-week highs, supported by short covering and improving sentiment ahead of the FOMC. Altcoins traded mixed but continued to display selective pockets of strength as Bitcoin consolidated.

US Stock Futures
US stock futures hovered near the flatline on Wednesday as investors stayed on pause ahead of the Federal Reserve’s final policy decision of the year. Dow Jones, S&P 500, and Nasdaq 100 futures all held steady, following several sessions of sideways trade as markets avoided major positioning. Traders are pricing in nearly a 90% probability of a third consecutive 25 bps rate cut, keeping sentiment cautious but stable ahead of the announcement.

US Treasury Notes
US Treasury yields held near multi-month highs on Wednesday, with the 10-year note hovering around 4.2%, as investors positioned cautiously ahead of the Federal Reserve’s policy decision. While a third consecutive 25 bps rate cut is fully priced in, traders are increasingly doubtful that the easing cycle will continue into 2026 amid stubborn inflation and growing divisions within the FOMC.

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