Indian stock markets start the year’s last session on a positive note; Tata Steel, BEL, and Adani Ports lead early gains while FIIs continue to sell.
Indian equity markets began the final trading session of 2025 on a positive note, with both benchmark indices — the BSE Sensex and NSE Nifty 50 — opening in the green amid mixed global cues and persistent selling pressure from foreign investors.
At the opening bell, the 30-share BSE Sensex gained 118.5 points to start the day at 84,793.58, while the Nifty 50 added 32.2 points to open at 25,971.05. This comes after Tuesday’s closing levels, where the Sensex had settled at 84,675.08 and the Nifty 50 at 25,938.85.
Broader indices trade positive
Alongside the benchmark indices, the broader market indices also opened in positive territory. The BSE Midcap index rose by 133.84 points or 0.29%, while the BSE Smallcap index gained 153.50 points, or about 0.30%, to trade at 51,074.78 in early deals.
Analysts suggest this slight uptick in the broader market reflects selective buying activity in mid- and small-cap stocks as investors look to position themselves ahead of the new year.
Sensex gainers and laggards
In the early trade, several heavyweights from the Sensex pack contributed to the market’s upward momentum. Tata Steel, Bharat Electronics Limited (BEL), Adani Ports, Kotak Mahindra Bank, and HCL Technologies were among the top gainers.
Tata Steel led the rally, surging 2.25% in the early session on the back of firm global metal prices and improved demand outlook.
On the downside, Bharti Airtel, Mahindra & Mahindra, TCS, Bajaj Finance, and Bajaj Finserv traded weak, dragging the index slightly. Bharti Airtel slipped 0.74% in early trade, possibly due to profit booking after recent gains.
Market breadth remained favorable in the early session. About 1,631 stocks were trading in the green, while 646 stocks were in the red, and 110 remained unchanged — indicating broader market participation.
Technical outlook for the day
According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the market continues to remain in a non-trending phase, with traders waiting for a decisive move in either direction.
He stated, “The resistance zones around 26,000 for Nifty and 85,000 for Sensex could be crucial for the bulls. A breakout above these levels may drive the markets higher towards 26,100–26,150 on Nifty and 85,300–85,500 on Sensex. Conversely, a fall below 25,870 for Nifty or 84,500 for Sensex could trigger additional selling pressure and push the markets down toward 25,800–25,750 / 84,200–84,000 levels.”
This technical perspective suggests that while markets are holding firm near record highs, traders will likely remain cautious ahead of year-end holidays and quarterly earnings season in January.
Gift Nifty signals positive sentiment
Ahead of the domestic market opening, early indications from the Gift Nifty pointed toward a positive start. The Gift Nifty — which acts as an early indicator for the Nifty 50 — opened 23 points higher at 26,126, compared to the previous close of 26,103.
Analysts say the mildly positive cues from the Gift Nifty reflected a stable global setup despite weakness in US equities overnight.
FIIs remain net sellers, DIIs support markets
On the institutional front, Foreign Institutional Investors (FIIs) continued their selling streak for the sixth straight session on December 30, offloading equities worth ₹3,844.02 crore. Meanwhile, Domestic Institutional Investors (DIIs) extended their buying momentum, with net purchases worth ₹2,643 crore.
This tug-of-war between FIIs and DIIs has become a defining feature of December trading. While FIIs have been cautious due to high valuations and global risk-off sentiment, domestic investors — led by mutual funds and insurance firms — continue to provide structural support to Indian equities.
Market experts believe that the strong domestic liquidity and long-term optimism around India’s economic growth may offset the foreign outflows to some extent.
Global market overview
In the broader global context, Asian markets traded mixed during the early session on Wednesday. Major bourses in Tokyo (Nikkei) and Seoul (Kospi) were closed for year-end and New Year holidays, resulting in lower trading volumes across the region.
Among other markets, the Hong Kong Hang Seng Index saw mild gains, while Shanghai Composite remained marginally lower amid concerns over China’s economic slowdown.
In the United States, equity markets closed slightly lower on Tuesday after a choppy session, as investors balanced concerns about inflation and interest rate policy with optimism over upcoming corporate earnings.
Outlook for the day
Market participants expect volatility to remain subdued as investors close their books for the year and position themselves for 2026. With the year coming to an end, traders anticipate a relatively range-bound session driven more by technical cues and institutional activity than by major fundamental developments.
Short-term sentiment remains cautiously optimistic, supported by domestic institutional buying and firm cues from select sectors like metals, auto, and IT services.
As India closes out another strong year for equities, attention now turns to new catalysts — including Union Budget expectations, corporate earnings, and global monetary policy trends — which will shape the market’s tone in early 2026.
