Sensex and Nifty Performance Overview
The BSE Sensex opened the day 122.62 points higher but reversed course to close at 85,517.32, reflecting a loss of 50.16 points or 0.06%. This places the index approximately 0.75% below its 52-week high of 86,159.02. The index remains above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a sustained medium-term uptrend despite the day's minor setback.
The Nifty index mirrored this cautious tone, with sectoral breadth showing 25 advancing sectors against 13 decliners out of 38 sectors tracked. This breadth indicates a market with pockets of strength amid broader uncertainty.
Sectoral Trends: Divergence Between PSU and IT
The BSE Public Sector Undertakings (BSEPSU) sector led the gains with a rise of 0.78%, buoyed by select heavyweight stocks. Conversely, the Nifty IT sector experienced the steepest decline, falling by 1.21%, pressured by profit booking and subdued global technology demand. This divergence highlights the market's rotation from growth-oriented IT stocks towards value-oriented PSU names.
Market Breadth and Capitalisation Segments
Market breadth on the BSE500 index was positive, with 325 stocks advancing against 171 declining, resulting in an advance-decline ratio of approximately 1.9 times. This breadth supports the notion of a broadly constructive market environment despite the Sensex's slight dip.
Among capitalisation segments, small caps led the charge with the BSE Small Cap index gaining 0.42%. Mid caps and large caps showed more muted movements, with the BSE Mid Cap index rising by 0.02% and the BSE 100 index edging up 0.04%. This suggests investor preference for smaller, potentially higher-growth companies in the current market context.
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Top Gainers and Losers Across Market Caps
Among the BSE500 stocks, Alok Industries led the gainers with a robust 8.15% rise, followed by Jupiter Wagons at 6.63% and Cholamandalam Investment and Finance Company at 5.64%. These stocks demonstrated strong buying interest, reflecting positive sentiment in select industrial and financial services sectors.
On the downside, Coforge was the most notable decliner, falling 4.28%, impacting both large and mid-cap indices. Neuland Laboratories and Dixon Technologies also faced selling pressure, declining 3.75% and 1.87% respectively. In the small-cap space, Steel Exchange stood out with a significant 14.29% gain, while Jubilant Agri retreated 6.24%.
Large Cap and Mid Cap Highlights
Large caps traded largely flat, with Cholamandalam Investment and Finance Company emerging as the top gainer, advancing 5.64%. Aarti Industries led the mid-cap segment with a 3.30% rise, signalling selective strength in specialty chemicals and industrial sectors. Coforge's decline of 4.28% was the largest loss in both large and mid-cap categories, reflecting sector-specific headwinds.
Foreign Institutional and Domestic Institutional Activity
Foreign institutional investors (FIIs) remained cautious, with subdued buying interest observed in the broader market. Domestic institutional investors (DIIs) showed selective participation, particularly in small and mid-cap stocks, supporting the outperformance of these segments. The cautious stance from FIIs aligns with global uncertainties and profit-taking ahead of year-end.
Global Cues and Their Impact
Global markets exhibited mixed trends, with US and European indices showing modest gains amid ongoing economic data releases and central bank commentary. Asian markets were subdued, reflecting concerns over inflation and geopolitical tensions. These global factors contributed to the cautious tone in Indian markets, with investors balancing optimism on domestic growth against external risks.
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Technical Outlook and Moving Averages
The Sensex's position above its 50-day moving average, which itself is above the 200-day moving average, suggests that the medium-term technical trend remains intact. However, the day's inability to sustain early gains and the slight decline indicate some profit booking or consolidation near recent highs. Investors may watch for confirmation of support levels around current index values to gauge the next directional move.
Conclusion: Market Sentiment and Outlook
Overall, the Indian equity market on 23 December 2025 displayed a cautious but constructive tone. Small caps led the advance, reflecting investor appetite for growth opportunities in less-covered segments. Large caps remained steady, with select stocks like Cholamandalam Investment and Finance Company and Aarti Industries showing resilience. Sectoral divergence, particularly the weakness in IT stocks contrasted with PSU gains, underscores the ongoing rotation within the market.
Foreign institutional investors maintained a cautious stance amid global uncertainties, while domestic investors supported smaller companies. The technical setup remains positive, though near-term volatility cannot be ruled out as the market approaches key resistance levels. Investors may benefit from monitoring sectoral trends and stock-specific developments to navigate the evolving landscape.
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