Sensex and Nifty Performance Overview

The benchmark Sensex opened 118.50 points higher and gained momentum throughout the day, adding a further 582.04 points to finish near its intraday peak. The index is now just 0.92% shy of its 52-week high of 86,159.02, signalling sustained bullishness. The Nifty followed a similar trajectory, buoyed by strong performances in key sectors such as oil and gas and metals.

Technical indicators remain supportive, with the Sensex trading comfortably above its 50-day moving average (DMA), which itself is positioned above the 200 DMA, indicating a healthy medium-term uptrend. This technical alignment often attracts momentum-driven buying and suggests that the market is well poised for further gains in the near term.

Sectoral Trends: Oil & Gas Leads, IT Lags

Sectoral performance was broadly positive, with 37 sectors advancing against just one in decline. The oil and gas sector emerged as the top gainer, rising 2.62%, driven by strong gains in companies such as MRPL, which soared 10.66% on robust refining margins and positive outlook for crude prices. The metals sector also contributed significantly, with JSW Steel rallying 4.69% among large caps.

Conversely, the IT sector was the sole decliner, slipping 0.17%. This marginal decline reflects profit-booking after recent strong rallies and some cautiousness ahead of upcoming global tech earnings. Despite this, the overall market breadth remained healthy, supported by strong advances in mid and small caps.

Market Breadth and Capitalisation Trends

The advance-decline ratio across the BSE500 was a robust 4.75x, with 413 stocks advancing and only 87 declining. This breadth confirms broad participation in the rally, a positive sign for market sustainability. Small caps led the charge, with the BSE Small Cap index gaining 1.18%, followed closely by mid caps, which rose 1.12%. The BSE100 index also recorded a respectable 0.93% gain, reflecting strength across market capitalisation segments.

Among mid caps, HPCL was a standout performer, climbing 5.76%, while Orient Technologies led small caps with an impressive 15.42% surge. On the downside, small cap Privi Speciality Chemicals fell sharply by 10.98%, highlighting pockets of volatility within the broader rally.

Top Gainers and Losers Across Market Caps

Among the top gainers on the BSE500, MRPL led with a 10.66% jump, followed by Graphite India at 9.56% and HFCL at 9.10%. These gains were supported by sector tailwinds and positive corporate developments. On the flip side, Embassy Developments declined 3.85%, Navin Fluorine International fell 3.42%, and Asahi India Glass dropped 2.44%, reflecting profit-taking and sector-specific pressures.

Large caps traded largely flat, with JSW Steel the top gainer at 4.69%, while PB Fintech was the largest laggard, down 1.34%. Mid caps showed more volatility, with HPCL gaining 5.76% and Emcure Pharma declining 1.91%. Small caps exhibited the widest swings, with Orient Technologies surging 15.42% and Privi Speciality Chemicals plunging 10.98%.

Foreign Institutional and Domestic Investor Activity

Foreign institutional investors (FIIs) maintained a steady buying stance, supporting the market’s upward momentum. Domestic institutional investors (DIIs) also participated actively, though with a more cautious approach. This balanced activity helped sustain the rally without excessive volatility. The inflows were particularly noticeable in oil and gas, metals, and select mid-cap sectors, reflecting confidence in cyclical recovery themes.

Global Cues and Outlook

Global markets closed mixed, with US indices edging higher on optimism over economic data, while Asian markets showed subdued performance amid concerns over geopolitical tensions and inflationary pressures. Crude oil prices remained firm, underpinning gains in the energy sector domestically. The Indian market’s resilience in this environment underscores its relative strength and the positive impact of domestic economic indicators.

Upcoming Corporate Earnings to Watch

Investors are also keeping an eye on upcoming quarterly results, with Corona Remedies scheduled to announce on 02 Jan 2026 and Canara Robeco on 20 Jan 2026. These earnings reports are expected to provide further directional cues for their respective sectors and could influence market sentiment in the early weeks of the new year.

Conclusion: Market Positioned for Continued Momentum

The final trading day of 2025 showcased a broad-based rally led by small and mid caps, supported by strong sectoral performances in oil and gas and metals. The Sensex’s technical positioning above key moving averages and proximity to its 52-week high suggest that the market remains in a constructive phase. While pockets of weakness in IT and select small caps warrant caution, overall market breadth and institutional participation indicate a healthy risk appetite among investors.

As global uncertainties persist, domestic economic resilience and corporate earnings will be key drivers to watch. Investors should continue to monitor sectoral rotations and valuation levels carefully while positioning portfolios for potential opportunities in emerging turnaround stories and cyclical sectors.

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