US Markets Navigate Year-End Repositioning as Indian Equities Display Broadening Strength

US equity markets experienced notable volatility throughout the last week, driven by technology-sector corrections and year-end portfolio re-balancing.

Major American indices delivered mixed performance, with the Nasdaq under pressure from profit-taking in AI-related stocks following substantial year-to-date gains.

Market sentiment improved markedly after December 12, supported by expectations of steady Federal Reserve policy and encouraging consumer spending data, including robust 4.1% growth in Black Friday retail sales.

Indian equity markets closed the week on an optimistic note, demonstrating remarkable resilience despite global headwinds and domestic profit-booking pressure. While frontline indices traded sideways, the broader market showed impressive strength.

This outperformance in mid- and small-cap segments suggests selective buying and improving investor risk appetite following a prolonged period of underperformance.

Asian stocks opened the week on firmer footing, building on Friday’s Wall Street rally that reinforced optimism for a strong year-end across global markets.

IT stocks captured market attention with a 1.2% advance following strong quarterly results from global technology bellwether Accenture.

The Infosys (INFY) ADR experienced a trading anomaly on December 19, 2025—a nearly 50% intraday price surge attributable to a data-feed error. Some systems mistakenly linked the ‘INFY’ ticker to an incorrect company, triggering automated buy orders and a short squeeze that led to NYSE volatility halts.

From a technical perspective, Nifty has broken above a downward-sloping trendline connecting recent lower swing highs, signalling potential easing of bearish momentum. The index held above the swing low of 25,693 and formed a higher bottom at 25,726, accompanied by follow-through buying—a constructive technical development.

A sustained move above 26,058 would confirm a bullish higher-high, higher-low structure on the daily chart and potentially signal a resumption of the primary uptrend. In that scenario, Nifty could advance toward next resistance levels at 26,202 and 26,330. On the downside, 25,726 now serves as near-term support.

The Indian markets are likely to open higher today on the back of positive global cues.