Stock Market Outlook Today: Sensex, Nifty Set for Steady Start on December 1 Amid Strong GDP Data, Global Cues

Indian equity markets are expected to open the week on December 1, 2025, with a cautiously optimistic undertone as investors weigh strong domestic macroeconomic data, improving global cues and a set of key economic triggers lined up over the next few days. Market sentiment remains broadly constructive, even though profit-booking at higher levels and continued foreign institutional investor outflows may keep volatility elevated in the near term.

Stock Market Outlook Today, 1st December 2025

The market mood comes on the heels of a largely steady session on Friday, when benchmark indices ended marginally lower. According to Siddhartha Khemka, Head of Research for Wealth Management at Motilal Oswal Financial Services Ltd, "Nifty ended flat, closing 0.05% lower (-12 pts) on Friday, as investors bet on impending rate cuts in the U.S. and India."

He added that sentiment was supported by robust macro data after India's Q2 GDP grew 8.2%, an improvement from 7.8% in the previous quarter. While the broader market underperformed-with the Nifty Midcap100 down 0.1 percent and the Smallcap100 slipping 0.3 percent-most major sectors still ended in the green, led by Nifty Auto and Nifty Pharma, both gaining 0.6 percent. Meanwhile, profit-booking was visible in Oil & Gas, Financial Services and Realty.

Stocks in Focus Today; Sector-wise Stocks Performance Trends

Auto and metal stocks remained key contributors to market strength. Khemka noted that the Nifty Auto index hit a new record high, backed by resilient retail demand in November and "improving trends across segments," especially SUVs in passenger vehicles and a gradual recovery in two-wheelers.

Metal stocks were also firm, supported by expectations of supportive global monetary policies. He further highlighted a major structural development in the financial sector, stating that India's BFSI market capitalisation has climbed to approximately Rs 105 trillion, with banks' dominance reducing to 54 percent from 70 percent a decade ago, reflecting the rise of insurers, capital market intermediaries and digital-first financial platforms.

Khemka added that after making a new high this week, "markets are expected to maintain a gradual up-move, with investors focusing on the RBI policy meeting next week."

Sensex, Nifty Prediction Today; What Traders Can Expect on December 1, 2025

On the technical front, the Nifty is showing signs of consolidation after hitting a fresh all-time high. Pravesh Gour, Senior Technical Analyst at Swastika Investmart, observed that the index remains above its short-term moving averages, which keeps the broader outlook positive, but also signalled a pause due to profit booking.

"The 26,142-26,310 zone will act as a crucial range to watch; a move above this band could open the way for 26,405 and 26,570, while a breach below 26,150 may result in a corrective drift toward 26,025 and 25,850," he said. These levels are expected to guide early-week sentiment on December 1.

The Sensex is likely to mirror the Nifty's movement with a mild upward bias. Supported by robust GDP numbers, strong demand in sectors such as auto and metals and broadly favourable global cues, the index is poised to attempt incremental gains. However, FII selling pressure and cautious positioning ahead of the RBI policy announcement may cap sharp upside moves during early trade on Monday.

Bank Nifty Outlook Today

The Bank Nifty continues to demonstrate strong bullish momentum, having recently hit a new all-time high of 59,897. Gour noted that the index is trading comfortably above key moving averages and continues its pattern of higher highs and higher lows. "A decisive move above the 60,000 psychological mark could lead to further upside toward 60,400, while 59,400 and 59,000 are expected to act as reliable support zones," he said.

With banking stocks driving much of the recent strength in the markets, the Bank Nifty is expected to remain a key driver for Monday's market sentiment.

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