Sensex and Nifty Trends
The Sensex opened 118.50 points higher and maintained its upward trajectory to close with a gain of 0.22%, trading at 84,862.89. This level places the index just 1.53% shy of its 52-week high of 86,159.02, underscoring a resilient market environment. The index remains comfortably above its 50-day moving average (DMA), which itself is positioned above the 200 DMA, indicating a sustained bullish trend in the medium term.
The Nifty mirrored this positive momentum, with 37 out of 38 sectors advancing, reflecting broad-based strength. The only sector to decline was NIFTY PSU Banks, which slipped 0.17%, marginally detracting from the overall market gains.
Sectoral Performance: Metals Lead, PSU Banks Lag
The metal sector led the charge with a notable 1.38% gain, buoyed by strong performances from key constituents. This sectoral strength was a key driver behind the Sensex’s modest rise. Conversely, the PSU banking sector faced pressure, declining 0.17%, weighed down by concerns over asset quality and subdued credit growth prospects.
Other sectors such as IT, FMCG, and Pharma also contributed positively, albeit with more moderate gains, reflecting a balanced market mood.
Market Breadth and Capitalisation Trends
Market breadth was decidedly positive, with the BSE500 index recording 385 advancing stocks against 110 decliners, yielding an advance-decline ratio of approximately 3.5x. This breadth indicates healthy participation across market segments rather than a narrow rally.
Small caps outperformed, with the BSE Small Cap index rising 0.47%, slightly ahead of the Mid Cap index’s 0.44% gain and the BSE100’s 0.28% increase. This leadership from smaller companies suggests investor appetite for higher growth potential remains intact despite broader market caution.
Top Gainers and Losers Across Market Caps
Among large caps, JSW Steel stood out as the top gainer, surging 4.38% on the back of strong metal sector momentum. On the downside, PB Fintech declined 1.42%, reflecting profit-taking after recent gains.
Mid caps saw Lloyds Metals rise 3.11%, while AIA Engineering slipped 1.43%. Small caps exhibited the widest swings, with Z F Steering soaring 14.77%, a remarkable rally that highlights speculative interest in select names. Conversely, Privi Speciality Chemicals fell sharply by 12.02%, marking it as the day’s most significant small-cap loser.
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Foreign Institutional and Domestic Institutional Activity
Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) continued to play a pivotal role in market dynamics. While detailed net inflow/outflow figures for the day are not disclosed, the sustained upward momentum in indices and breadth suggests that institutional participation remained constructive. Historically, FIIs have been net buyers during the last quarter of the year, positioning portfolios ahead of the new fiscal year, which may be influencing current market trends.
Global Cues and Their Impact
Global markets closed mixed on the last trading day of 2025, with US indices edging higher on optimism over economic data, while Asian markets showed cautious gains amid geopolitical uncertainties. The Indian market’s positive close aligns with the broader risk-on sentiment globally, although investors remain watchful of inflationary pressures and central bank policies worldwide.
Upcoming Corporate Results to Watch
Investors are gearing up for key earnings announcements in early January, which could set the tone for market direction in 2026. Corona Remedies is scheduled to report results on 02 Jan 2026, followed by Canara Robeco on 20 Jan 2026. These results will be closely analysed for insights into sectoral health and corporate earnings momentum.
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Technical Outlook and Market Sentiment
Technically, the Sensex’s position above its 50 DMA, which itself is above the 200 DMA, signals a bullish medium-term trend. The proximity to the 52-week high suggests limited immediate upside but also indicates strong support levels. The advance-decline ratio of 3.5x across the BSE500 reinforces the breadth of the rally, reducing the risk of a narrow market advance.
Small caps leading the market with a 0.5% gain further indicates investor willingness to embrace riskier assets, often a precursor to broader market strength. However, the modest losses in select large and mid caps highlight pockets of profit-taking and sector-specific concerns.
Summary
In summary, the Indian equity market closed 2025 on a positive note, with the Sensex gaining 0.22% and broad sectoral participation. Metals led sectoral gains, while PSU banks lagged slightly. Small caps outperformed, reflecting investor appetite for growth. Market breadth was robust, and technical indicators remain supportive of a continued uptrend. Institutional activity and global cues have been favourable, setting a constructive backdrop for the new year. Investors will be closely watching upcoming corporate results for further direction.
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