Indian equity markets finish holiday-shortened week in positive terrain

By Samira Vishwas On Dec 27, 2025

Sensex, Nifty open lower amid weak global cuesIANS

Indian equity markets ended the week in a positive terrain, buoyed by expectations of stronger domestic demand, a favourable liquidity outlook and optimism over potential Fed policy easing in 2026, analysts said on Saturday.

The holiday-shortened week opened with a bullish undertone; however, momentum tapered off as the days progressed.

On Friday, Sensex closed at 85,041.45, slipping 367.25 points or 0.43 per cent. Nifty also ended in the red, falling 99.80 points or 0.38 per cent to settle at 26,042.30.

According to market watchers, the year-end lull kept trading largely range-bound, with hopes for a Santa Claus rally diminishing amid the absence of fresh catalysts, limited progress in US–India trade talks, and caution ahead of the upcoming earnings season.

“Sectoral trends were mixed, marked by selective profit booking across most segments, while metals, FMCG, and media stocks offered notable resilience,” said Vinod Nair, Head of Research, Geojit Investments Ltd.

Nifty 50 ended the week at 26,042, continuing to respect its long-term rising channel on the daily chart. The index remains comfortably above the 20-day EMA cluster, preserving the medium-term bullish structure, said analysts, adding that as long as Nifty sustains above the 26,000–25,900 support zone, the overall bias remains positive.

Indian stock markets opened weak on Thursday as pressure from a falling rupee and continued foreign investor selling kept sentiment muted on Dalal Street. The opening also coincided with the weekly F&O expiry for the Sensex, adding to the cautious mood among traders. The rupee hit a fresh record low of 90.56 against the US dollar in early trade, worsening concerns about capital outflows. The sustained depreciation has been fuelled by steady foreign investor selling, firm demand for the dollar, and lingering uncertainty surrounding India’s trade negotiations with the US. Against this backdrop, the benchmark Sensex began the day at 84,958, down 148 points or 0.17 per cent. The Nifty opened at 25,953, slipping 33 points or 0.13 per cent. Most heavyweight stocks on the Sensex traded lower in the morning session. HUL, Titan, Eternal, ICICI Bank, Power Grid, Trent, Ultratech Cement, Bajaj Finserv, Tata Motors PV, NTPC, Bajaj Finance, and HDFC Bank were among the major laggards. Only a handful of large-cap counters managed to stay in the green. IT majors TCS, HCL Tech, Infosys, and Tech Mahindra led the gainers’ list, supported by a stronger dollar. Asian Paints and Bharti Airtel also opened with mild gains. In the broader market, sentiment was mixed. The Nifty MidCap index edged up 0.17 per cent, showing some resilience, while the Nifty SmallCap index slipped 0.07 per cent. Market participants said the recent pressure on equities is closely linked to the rupee’s sharp fall. After breaching the 90-per-dollar mark on Wednesday, the currency’s slide has become a key worry for investors, raising concerns over imported inflation and higher costs for companies dependent on overseas supplies. With global cues still uncertain and the domestic currency under strain, traders expect markets to remain volatile through the day, according to experts.IANS

On the domestic front, RBI’s liquidity interventions, such as open market operations and a USD/INR buy–sell swap, helped stabilise the rupee, though persistent FII outflows continued to weigh on sentiment.

Meanwhile, gold advanced on safe-haven demand, while crude prices hovered near multi-year lows, though U.S. steps to tighten pressure on Venezuelan oil shipments could exert upward pressure in the near term

Looking ahead, market sentiment is likely to stay cautious as investors brace for the upcoming earnings season while remaining attuned to global developments and currency movements, said analysts.

Attention will also turn to next week’s data releases, including India’s industrial and manufacturing output figures, manufacturing PMI, and the US FOMC minutes, said Nair.

(With inputs from IANS)