Sensex and Nifty Trends

The benchmark Sensex opened 118.50 points higher and steadily climbed throughout the session, ultimately gaining 624.80 points to close at 85,299.88. This marks a 0.74% increase on the day and brings the index within 1.01% of its 52-week high of 86,159.02. The Nifty followed a similar trajectory, buoyed by broad-based buying across sectors.

Technical indicators remain constructive, with the Sensex trading comfortably above its 50-day moving average (DMA), which itself is positioned above the 200 DMA, signalling a sustained uptrend. Midcaps and small caps also participated in the rally, with the BSE Midcap index rising 1.09% and the BSE Small Cap index gaining 1.11%, outperforming the broader market.

Sectoral Performance: Oil & Gas Leads, IT Faces Headwinds

Out of 38 sectors tracked, 36 advanced while only two sectors declined. The Oil & Gas sector was the top performer, surging 2.56% on the back of strong gains in key stocks such as MRPL, which rallied 9.99%, and Graphite India, which rose 9.33%. This sector’s outperformance was driven by rising crude oil prices globally and positive earnings outlooks.

Conversely, the Nifty IT sector was the sole laggard, slipping 0.19% amid profit-taking and cautious investor sentiment ahead of the new calendar year. Despite this, the broader market’s strength helped offset the IT sector’s weakness.

Top Gainers and Losers Across Market Caps

Among large caps, JSW Steel emerged as the top gainer, advancing 4.75%, supported by robust demand outlook and favourable commodity prices. On the downside, PB Fintech was the largest large-cap loser, declining 1.44% amid sector rotation.

In the midcap space, Gujarat Gas led the gainers with a 5.76% rise, while Emcure Pharma lagged, falling 1.99%. Small caps witnessed the most dramatic moves, with Orient Technologies surging 14.98%, reflecting renewed investor interest in select under-the-radar stocks. Meanwhile, Privi Speciality Chemicals dropped sharply by 11.35%, marking the steepest fall among small caps.

Breadth and Market Participation

The advance-decline ratio across the BSE 500 was a healthy 4.67 times, with 411 advances against 88 declines, indicating broad-based buying interest. The BSE 100 index rose 0.86%, reflecting strength in large and mid-sized companies. This widespread participation underscores the market’s positive momentum as investors position themselves ahead of the new year.

Notable Movers in the BSE 500

Among the broader BSE 500 constituents, MRPL led the charge with a near 10% gain, followed closely by Graphite India and Zydus Wellness, which rose 9.33% and 8.68% respectively. These stocks benefited from sector tailwinds and positive earnings revisions.

On the downside, Embassy Developments fell 3.60%, Asahi India Glass declined 2.92%, and Aditya AMC dropped 2.69%, reflecting profit-booking and sector-specific concerns.

Institutional Activity and Global Cues

Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) remained active participants in the market, with net inflows supporting the rally. While exact figures for the day are yet to be disclosed, the positive market breadth and sectoral gains suggest sustained buying interest from these key players.

Globally, markets closed mixed but largely stable, with US indices ending the year on a positive note and Asian markets showing resilience. Crude oil prices firmed up amid supply concerns, bolstering the Oil & Gas sector in India. These global factors contributed to the domestic market’s upbeat mood.

Technical Outlook and Near-Term Expectations

The Sensex’s proximity to its 52-week high and the positive positioning of moving averages indicate a bullish technical setup. Small and midcaps leading the rally suggest risk appetite is intact among investors. However, cautiousness remains around IT stocks and select pockets of the market that have seen recent sharp gains.

Upcoming corporate results, including Corona Remedies on 02 Jan 2026 and Canara Robeco on 20 Jan 2026, will be closely watched for cues on earnings momentum and sectoral trends.

Summary

In summary, the Indian equity market ended 2025 on a positive note, with the Sensex gaining 0.74% and strong participation from mid and small caps. The Oil & Gas sector led the advance, while IT stocks faced mild pressure. Market breadth was robust, and institutional investors remained supportive amid encouraging global cues. Technical indicators suggest the market is poised for further gains, though investors should monitor upcoming earnings and sector-specific developments closely as the new year begins.

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