Sensex, Nifty End 2025 on a High Note as Markets Eye 2026 Catalysts

Indian equity benchmarks traded higher on the final trading day of 2025, with the Nifty crossing the 26,000 mark. Sectoral gains were led by metals, chemicals, and PSU banks, while mid and small-cap indices also advanced. Analysts note the market's potential is tempered by persistent FII selling and a wait for fresh catalysts like corporate earnings and the upcoming budget. The positive domestic session contrasted with mostly lower closes across major Asian and US markets.

Key Points: Sensex Up, Nifty Crosses 26,000 on Final 2025 Trading Day

  • Nifty crosses 26,000 mark
  • Metals & PSU Banks lead gains
  • FII selling remains a headwind
  • Focus shifts to Q3 results & 2026 budget
2 min read

Sensex up in early trade, Nifty crosses 26,000 on final trading day of 2025

Indian markets closed 2025 in the green with Nifty above 26,000. Gainers included metals and PSU banks. Outlook hinges on earnings, budget, and Fed.

"Market has the potential to rise, but sustained FII selling and lack of fresh triggers are weighing it down. - Analysts"

Mumbai, Dec 31

The Indian benchmark indices traded in the green zone early on Wednesday on the final day of the trading year.

As of 9.30 am, Sensex advanced 167 points, or 0.20 per cent to 84,872 and Nifty gained 67 points, or 0.26 per cent to 26,005.

Main broad-cap indices performed in line with benchmark indices, with the Nifty Midcap 100 adding 0.55 per cent, while the Nifty Smallcap 100 gaining 0.58 per cent.

Among sectoral gainers, the Nifty Metal was the top gainer up 1.33 per cent, followed by Nifty Chemicals adding 1.09 per cent and Nifty PSU Bank gaining 0.79 per cent.

Immediate support is placed at 25,750-25,800 zone, while resistance is placed near 26,050-26,100 zone, analysts said.

Market has the potential to rise, but sustained FII selling and lack of fresh triggers like US-India trade news are weighing it down, they added.

Investors are looking for cues from December auto sales data, Q3 corporate results, budget expectations, and Fed action in 2026. Traders are hopeful that earnings will rebound in 2026, market watchers said.

Asia-Pacific markets mostly fell in the morning session, on the holiday-shortened and final trading day of the year.

In Asian markets, China's Shanghai index eased 0.07 per cent, and Shenzhen edged down 0.67 per cent, Japan's Nikkei declined 0.37 per cent, while Hong Kong's Hang Seng Index lost 1.12 per cent. South Korea's Kospi declined 0.15 per cent.

The US markets ended in the red zone during the previous trading day, as Nasdaq lost 0.24 per cent, the S&P 500 eased 0.14 per cent, and the Dow moved down 0.2 per cent.

On December 30, foreign institutional investors (FIIs) sold equities worth Rs 3,844 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 6,160 crore.

- IANS

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Reader Comments

S
Sarah B
Interesting that while most Asian markets are down, India is holding up. Shows some underlying strength. But the constant FII selling is a worry. DIIs can't keep covering for them forever. Need more policy clarity to attract long-term foreign money.
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Priya S
Metals and PSU banks leading the charge! My portfolio is finally seeing some green after a tough few months. Hope this isn't just a year-end rally and the momentum continues into January. Fingers crossed for the budget announcements.
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Rohit P
Small and midcaps outperforming again. That's where the real action is for common investors. But one has to be very careful with stock selection in this segment. Bhai, volatility bahut hai!
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Michael C
Respectfully, while crossing 26,000 is a milestone, the gains are very modest (0.26%). The article itself points out the lack of fresh triggers. This feels more like window dressing by funds for their year-end books rather than genuine bullishness. The real test will be in early 2026.
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Kavya N
The support and resistance levels mentioned are key for traders. 26,100 is the next big hurdle. If we break that with volume, we could see a proper rally. For now, it's a cautious optimism. Let's see what the new year brings. Happy New Year to all investors! 🎉

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