Sensex, Nifty Edge Up in Year-End Trade; Focus Shifts to 2026 Catalysts

The benchmark Nifty 50 index opened at 26,018.45, registering a gain of 79.60 points or 0.31 per cent. The BSE Sensex opened at 84,908.44, up 233.36 points or 0.28 per cent.

Market participants remained cautious despite the positive opening, with experts pointing to weak December performance and low foreign investor participation.

Ajay Bagga, Banking and Market Expert, told ANI, "Indian markets had an uninspiring December series and FPI positioning at just 9 per cent longs remains a barrier to market recovery. The triple catalysts of Q3 earnings revival, Union Budget 2026 stimulus and reforms boost, as well as a potential trade deal with the EU and US, will be watched carefully. India has underperformed both DMs and EMs and the shift from "valuation concerns" in 2025 to "earnings validation" in 2026 will be the key move to watch. A lot will depend on the earnings season coming up in 15 days."

In the broader market, all major indices on the NSE opened in the green. The Nifty 100 rose 0.28 per cent, the Nifty Smallcap 100 gained 0.51 per cent, while the Nifty Midcap 100 was up 0.49 per cent, indicating broader-based buying despite subdued sentiment.

Sectorally, all major indices on the NSE opened higher. Nifty Metal surged more than 1 per cent following the extension of steel import curbs for three years. Nifty IT was up 0.2 per cent, FMCG gained 0.24 per cent, and Nifty PSU Bank edged higher by 0.07 per cent. Nifty Realty rose 0.47 per cent, while Nifty Pharma gained 0.21 per cent.

Ponmudi R, CEO of Enrich Money, said, "Indian equity markets are set to conclude 2025 on a subdued note in the final trading session, as extremely thin year-end liquidity, global holiday closures, and continued FII caution limit meaningful participation. With most global markets either shut or operating in shortened sessions for New Year's Eve, intraday volatility is expected to remain compressed. In the absence of fresh domestic triggers, markets are likely to stay range-bound, with selective stock-specific action driven by year-end portfolio adjustments rather than broad directional conviction".

On the fund flow front, data for December 30 showed FPIs were net sellers in the cash market to the tune of Rs 3,844 crore, while domestic institutional investors (DIIs) provided support with net purchases of Rs 6,159.8 crore.

Globally, U.S. equities slipped for a third consecutive session as technology stocks lagged, even as precious metals rebounded. The S&P 500 continued to track a strong 2025 despite Tuesday's loss. Asian markets were largely weak, although Japan ended the year at a lifetime high.

On Wednesday, markets in Korea and Japan remained shut for New Year's Eve celebrations, while Hong Kong closed early.

- ANI