TLDR
Market Recap: December 08, 2025
On December 08, Indian equities reversed their recent gains, with broad-based selling ahead of this week’s US Fed decision and on persistent rupee weakness. The Sensex closed at 85,102.69, down 609.68 points (0.71 percent), while the Nifty 50 ended at 25,960.55, down 225.90 points (0.86 percent). The correction was sharper across the broader market, with the Nifty Midcap 100 down about 1.8 percent and the Nifty Smallcap 100 down roughly 2.6 percent. India VIX edged up to the low 11s, approximately 8 percent higher, signalling a pickup in near-term risk aversion.
Key Drivers :
Fed caution and global rates: Indices slipped as traders de-risked before the US FOMC outcome, with higher global yields reviving worries on risk assets.
Rupee and FII flows: Ongoing rupee weakness and continued FII selling weighed on near-term sentiment, overriding support from robust domestic macro data and the recent RBI rate cut.
Broad risk off in cyclicals: Realty, PSU banks, media, and metals led sector losses, while IT was relatively resilient as defensives found some support.
Today’s Top Stories:
IndiGo Turbulence Deepens: Massive flight cancellations, regulatory scrutiny, and a credit negative tag from Moody’s have knocked IndiGo’s stock down sharply.
Wakefit IPO Opens: Mattress and home solutions player Wakefit launched its issue, but early subscription looks measured in a crowded mid-market IPO pipeline.
Luxury Time SME Frenzy: Luxury Time’s SME IPO closed with over 600 times subscription, pointing to a strong appetite and likely volatile listing dynamics.
SpiceJet Rides IndiGo’s Woes: SpiceJet jumped into double digits as travellers and traders bet on a short-term windfall from IndiGo’s operational crisis.
Dr Reddy’s Adds Cancer Option: A 370 million licensing deal with Immutep boosts Dr Reddy’s late-stage oncology pipeline, with limited near-term earnings impact.
TOP STORIES
1. IndiGo Turbulence Deepens, Shares Hit Air Pocket
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Operational stress: IndiGo has cancelled hundreds of flights over several days, cut schedules, and offered waivers, refunds, and alternate travel to manage the chaos at key airports.
Regulatory and credit view: DGCA and the Civil Aviation Ministry are monitoring; Moody’s calls the disruptions credit negative, given lost revenue, compensation, and potential penalties.
Market reaction: The stock has dropped about 8 percent in a session and over 10 percent this week as investors price in operational and reputational damage.
IndiGo is facing large-scale flight cancellations, regulatory scrutiny, and a sharp stock drop. How do you see this disruption?
2. Wakefit IPO Opens, Retail Sleep Story Tests Demand
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Offer details: Wakefit Innovations’ IPO opened today with a three-day window, targeting fresh capital to expand its sleep and home solutions franchise.
Business pitch: The issue leans on Wakefit’s online-first brand, mattress and furniture portfolio, and plans to deepen offline distribution in key urban markets.
Early subscription: Initial subscription trends are modest, suggesting investors are selective after a crowded mid-market IPO pipeline in recent months.
Wakefit’s IPO is open with modest early subscription in a crowded primary market. What is your stance on this issue?
3. Luxury Time SME IPO Draws Frenzied Bids
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Book build: Luxury Time’s SME IPO, sized at about ₹19 crore, closed today after a heavily oversubscribed three-day book build in the ₹78–₹82 band.
Investor mix: Strong demand from HNIs and retail points to appetite for branded discretionary plays in the SME segment despite rich valuations and low float.
Subscription spike: Final subscription crossed 600 times, setting up expectations of a sharp listing pop but also signalling elevated near-term volatility.
Luxury Time’s SME IPO has seen extreme oversubscription and frenzy. How do you read this kind of demand?
4. SpiceJet Rallies As IndiGo’s Pain Becomes Its Gain
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Price action: SpiceJet surged up to the mid-teens intraday as volumes spiked several-fold against the two-week average on the BSE.
Demand shift: IndiGo’s widespread cancellations are temporarily pushing spillover demand to smaller carriers, improving SpiceJet’s near-term load factors and pricing power.
Market reaction: Traders are treating the move as a high-risk tactical trade rather than a structural rating, given SpiceJet’s balance sheet constraints.
SpiceJet has rallied sharply as a possible near term beneficiary of IndiGo’s issues. How do you view this move?
5. Dr Reddy’s Signs Oncology Licensing Deal With Immutep
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Deal structure: Dr Reddy’s will pay Immutep 20 million dollars upfront and up to 370 million dollars in milestones for rights to a phase 3 LAG 3 asset.
Strategic fit: The pact strengthens Dr Reddy’s late-stage oncology pipeline in select territories and deepens its presence in higher-value specialty products.
Stock response: Shares were broadly steady, with investors viewing the deal as a long-dated optionality play rather than an immediate earnings driver.
Dr Reddy’s has licensed an oncology asset from Immutep with big milestone potential. Your take on this deal?
GYAANI HOT TAKES
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