Domestic Investors Counter FII Outflows Amid Muted Dalal Street Rally

The Indian stock market witnessed a subdued 'Santa Rally' in December 2025 due to significant foreign institutional investor (FII) outflows. However, strong buying by domestic institutional investors (DIIs) largely cushioned the market against sharper declines, acting as a crucial stabilizing force.

• Indian market experiences muted 'Santa Rally' with FIIs as net sellers.
• Domestic institutional investors (DIIs) provide strong market support.
• Sensex faces potential second consecutive December monthly loss in 2025.
• DIIs recorded substantial net buying, offsetting foreign portfolio investor (FPI) outflows.
• Global macro realities and geopolitical factors influenced market sentiment.
• Nifty 50 maintained a consolidation phase through December 2025.

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