Sensex and Nifty Movement

The BSE Sensex opened the day 122.62 points higher but reversed course to close at 85,486.55, reflecting a decline of 0.09%. Similarly, the Nifty 50 index traded with volatility, ending the session with a slight loss. The Sensex currently stands approximately 0.79% below its 52-week high of 86,159.02, indicating some resistance near recent peaks. Notably, the Sensex is trading above its 50-day moving average (DMA), which itself remains above the 200 DMA, signalling that the medium-term trend retains a positive bias despite the recent pullback.

Sectoral Performance: Winners and Laggards

Out of 37 sectors tracked on the BSE, 20 sectors recorded gains while 17 sectors declined, reflecting a mixed market environment. The BSE PSU sector emerged as the top gainer, rising by 0.55%, buoyed by select public sector undertakings showing resilience amid broader market caution. Conversely, the Information Technology (IT) sector faced pressure, declining by 1.16%, weighed down by profit booking and subdued global tech sentiment.

Market Breadth and Capitalisation Trends

The advance-decline ratio across the BSE 500 index stood at 253 advances against 244 declines, yielding a ratio of 1.04x. This near-even breadth underscores the cautious stance among investors, with no clear directional bias prevailing. In terms of market capitalisation segments, small caps led the gains with the BSE Small Cap index rising by 0.17%. Meanwhile, the BSE Small Cap segment showed a rise of 0.13%, the BSE 100 large cap index edged lower by 0.04%, and the mid cap index declined by 0.15%, indicating a slight preference for smaller companies in the current market environment.

Top Gainers and Losers Across Market Caps

Among the top gainers on the BSE 500, Cholaman Investment & Finance led the pack with a notable 5.70% rise, followed by GMDC at 3.76% and Ircon International at 3.44%. On the downside, Coforge was the most prominent loser, slipping 4.94%, impacting both large and mid cap segments. Neuland Laboratories and AIA Engineering also faced declines of 2.27% and 1.97% respectively. In the small cap space, Electrotherm (India) stood out with a robust 14.30% gain, while Jubilant Agri retreated by 6.24%, marking the steepest fall in that category.

Foreign Institutional and Domestic Institutional Activity

Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) activity remained subdued, reflecting a wait-and-watch approach ahead of the year-end. While detailed net inflow or outflow figures were not disclosed, the cautious positioning was evident in the muted price action and balanced market breadth. Global cues, including mixed signals from US and European markets, alongside concerns over inflation and monetary policy outlooks, contributed to the restrained investor appetite.

Global Market Influence and Outlook

Global markets showed a mixed trend on 23 December 2025, with US indices fluctuating amid economic data releases and geopolitical developments. European markets closed modestly lower, while Asian markets were mixed, reflecting ongoing uncertainty over central bank policies and economic growth prospects. These global factors influenced the Indian market’s cautious tone, with investors opting for selective stock picking rather than broad-based buying.

Technical Indicators and Market Sentiment

Technically, the Sensex’s position above its 50 DMA, which remains above the 200 DMA, suggests that the medium-term uptrend is intact. However, the recent intraday reversal from a higher opening and the inability to sustain gains near the 52-week high indicate some resistance and profit-taking at elevated levels. The small cap segment’s relative strength may signal investor interest in higher growth potential stocks, although volatility remains a factor to monitor closely.

Investor Takeaway

Investors should note the mixed market signals as the year draws to a close. While the broader indices have shown resilience, the divergence between sectors and market capitalisation segments suggests a selective approach remains prudent. The strength in small caps and certain mid cap stocks may offer opportunities for those willing to navigate volatility, whereas caution is warranted in sectors facing headwinds such as IT. Monitoring global developments and institutional flows will be key to gauging market direction in the near term.

Looking Ahead

As 2025 concludes, market participants will be closely watching corporate earnings updates, macroeconomic data, and policy announcements for cues on 2026’s trajectory. The current technical setup indicates that while the uptrend is not broken, consolidation or intermittent corrections could occur before fresh momentum emerges. Investors may benefit from balancing exposure across sectors and market caps, aligning with their risk tolerance and investment horizon.

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