Sensex and Nifty Trends
The benchmark Sensex opened 118.50 points higher and maintained its upward momentum throughout the session, closing just 1.44% below 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 mirrored this positive sentiment, supported by gains in heavyweight sectors.
Sectoral Performance: Metals Lead, IT Trails
Out of 38 sectors tracked, 35 advanced while only three declined, reflecting broad market participation. The metal sector emerged as the top performer, rising 1.62%, buoyed by strong gains in key constituents such as JSW Steel, which surged 4.73%. This sector’s outperformance was driven by improving global commodity prices and positive domestic demand outlook.
Conversely, the BSE IT sector was the sole notable laggard, declining 0.29%, pressured by profit booking and cautious global technology spending forecasts. Other sectors such as financials and consumer discretionary also contributed positively but with more moderate gains.
Market Capitalisation and Breadth
Small caps led the charge with the BSE Small Cap index rising 0.94%, outperforming mid caps (up 0.78%) and large caps (up 0.46% on BSE100). This rotation towards smaller stocks suggests investor appetite for higher growth potential amid stable macroeconomic conditions. The advance-decline ratio across the BSE500 was a robust 412 advances to 87 declines, a strong 4.74 times more advances, indicating healthy market breadth.
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Top Gainers and Losers
Among the BSE500 stocks, Zydus Wellness led the gainers with a 9.00% jump, followed by HEG at 8.59% and HFCL at 8.44%. These stocks benefited from sector-specific tailwinds and positive earnings outlooks. On the downside, Aptus Value Housing declined 2.85%, Aditya AMC fell 2.74%, and Asahi India Glass slipped 2.71%, reflecting profit booking and sector-specific concerns.
Breaking down by market cap segments, the top large-cap gainer was JSW Steel (+4.73%), while PB Fintech was the largest large-cap loser (-1.79%). Gujarat Gas led mid caps with a 5.94% rise, whereas Patanjali Foods declined 2.21%. In the small-cap space, Dynacons Systems surged an impressive 16.25%, contrasting with Privi Speciality Chemicals, which dropped 11.12%.
Institutional Activity and Global Cues
Foreign institutional investors (FIIs) remained net buyers, supporting the market’s upward trajectory, while domestic institutional investors (DIIs) also maintained steady inflows. This combined institutional interest helped sustain momentum despite mixed global cues, including cautiousness over US economic data and geopolitical developments.
Global markets closed mixed, with US indices ending slightly lower amid concerns over interest rate policies, while Asian markets showed resilience. The Indian market’s relative strength reflects domestic economic stability and positive corporate earnings expectations heading into the new year.
Technical Outlook and Key Levels
The Sensex’s position above the 50 DMA, which remains above the 200 DMA, confirms a bullish medium-term trend. The index’s proximity to its 52-week high suggests potential for further upside, though investors should watch for profit booking near resistance levels. Small and mid caps leading the rally indicate a healthy risk appetite, which could sustain market breadth in the near term.
Upcoming Corporate Results
Market participants will closely monitor upcoming quarterly results, including Corona Remedies scheduled for 02 Jan 2026 and Canara Robeco on 20 Jan 2026. These earnings reports are expected to provide further clarity on sectoral trends and corporate profitability, potentially influencing market direction in early 2026.
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Summary
In summary, the Indian equity market ended the final trading day of 2025 on a positive note, with broad sectoral participation and strong small-cap performance driving gains. Metals led the charge, supported by favourable commodity dynamics, while IT stocks lagged amid global uncertainties. Institutional buying and healthy market breadth underpin the current bullish trend, with technical indicators signalling potential for further upside. Investors should remain attentive to upcoming earnings and global developments as they position for 2026.
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