Sensex Climbs 240 Points as Oil & Gas Sector Leads; Small Caps Outperform

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The Indian equity market closed higher on 31 Dec 2025, with the Sensex advancing 240.55 points, or 0.42%, to settle at 85,034.13. Buoyed by strong sectoral breadth and robust gains in small caps, the market demonstrated resilience amid mixed global cues. The Nifty mirrored this positive momentum, supported by leadership from the oil and gas sector, while IT stocks lagged marginally.



Sensex and Nifty Performance Overview


After opening 118.50 points higher, the Sensex extended gains throughout the session, closing with a net increase of 240.55 points. This brought the index to 85,034.13, just 1.32% shy of its 52-week high of 86,159.02. The index remains comfortably above its 50-day moving average (DMA), which itself is positioned above the 200 DMA, signalling a sustained bullish trend. The Nifty followed a similar trajectory, reflecting broad-based strength across large caps.



Sectoral Trends: Oil & Gas Outperform, IT Faces Pressure


Market breadth was overwhelmingly positive, with 35 out of 38 sectors advancing on the BSE. The oil and gas sector led the charge, gaining 2.13%, driven by optimism around crude price stability and improving refining margins. Conversely, the BSE IT sector was the only notable decliner, slipping 0.35% amid profit-booking and cautious global technology demand outlooks.



Large, Mid and Small Cap Movements


Large caps traded largely flat, with selective strength seen in key stocks. JSW Steel emerged as the top large-cap gainer, surging 4.86% on expectations of improved steel demand and favourable pricing. PB Fintech was the largest large-cap laggard, declining 2.05%, reflecting sector-specific headwinds and profit-taking.


Mid caps also showed positive momentum, rising 0.77%, with Gujarat Gas leading gains at 6.49%. Small caps outperformed, advancing 0.87%, bolstered by a sharp rally in Orient Technologies, which soared 16.99%. On the downside, Privi Speciality Chemicals fell 11.58%, marking the steepest decline among small caps.



Market Breadth and Advance-Decline Ratio


The BSE500 index recorded a strong advance-decline ratio of 387 advances to 109 declines, a ratio of approximately 3.55 times, underscoring broad market participation. This breadth confirms the underlying strength across market capitalisation segments and sectors, supporting the positive price action seen in benchmark indices.




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Top Gainers and Losers Across BSE500


Among the broader BSE500 constituents, HEG led the gainers with a robust 9.85% rise, followed closely by Zydus Wellness at 9.50% and Graphite India at 8.54%. These stocks benefited from sector-specific tailwinds and positive earnings outlooks.


On the flip side, Aptus Value Housing Finance declined 2.89%, Aditya AMC slipped 2.72%, and Radico Khaitan fell 2.59%, reflecting profit-booking and sector rotation pressures.



Foreign Institutional and Domestic Institutional Activity


Foreign Institutional Investors (FIIs) exhibited cautious buying, supporting the market’s upward trajectory, while Domestic Institutional Investors (DIIs) remained net buyers, reinforcing the positive sentiment. This balanced participation helped sustain the rally despite mixed global cues.



Global Market Cues and Outlook


Global markets closed mixed on the last trading day of 2025, with US indices edging higher on strong economic data, while European markets retreated amid geopolitical concerns. Crude oil prices stabilised near recent highs, providing support to energy stocks domestically. The Indian market’s resilience amid these global dynamics highlights investor confidence in the country’s growth prospects heading into 2026.



Technical Indicators and Moving Averages


The Sensex’s position above its 50 DMA, which itself is above the 200 DMA, indicates a healthy technical setup. This alignment suggests that the medium-term trend remains bullish, with potential for further upside as long as key support levels hold. Investors should monitor these moving averages closely for any signs of trend reversal.



Upcoming Corporate Earnings


Market participants are eyeing upcoming quarterly results, with Corona Remedies scheduled to announce on 02 Jan 2026 and Canara Robeco on 20 Jan 2026. These earnings releases could provide fresh catalysts for sector-specific movements and broader market direction in the early weeks of the new year.




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Investor Takeaway


With the Sensex closing above 85,000 and maintaining a positive technical stance, investors may find selective opportunities in sectors showing strength, particularly oil and gas, steel, and select mid and small caps. However, caution is warranted in IT and other lagging sectors until clearer signs of recovery emerge. The broad market participation and healthy advance-decline ratio suggest a constructive environment for equities as 2026 begins.



Summary of Key Market Metrics


Sensex closed at 85,034.13, up 240.55 points (0.42%). The index remains 1.32% below its 52-week high of 86,159.02. BSE Small Cap index led gains with a 0.87% rise, followed by Mid Cap at 0.77% and BSE100 at 0.55%. The advance-decline ratio on BSE500 was a strong 3.55x, with 387 advances against 109 declines. Sector-wise, Oil & Gas led with a 2.13% gain, while IT lagged with a 0.35% decline.



Top Performers


JSW Steel (+4.86%), Gujarat Gas (+6.49%), Orient Technologies (+16.99%), HEG (+9.85%), Zydus Wellness (+9.50%), Graphite India (+8.54%)



Top Decliners


PB Fintech (-2.05%), Privi Speciality Chemicals (-11.58%), Aptus Value Housing Finance (-2.89%), Aditya AMC (-2.72%), Radico Khaitan (-2.59%)






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