The Sensex closed at 85,041.45, down 367.25 points or 0.43 per cent from its previous close of 85,408.70
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Benchmark indices closed lower on Friday but managed to snap a three-week losing streak, ending the holiday-shortened week marginally higher by about 0.4 per cent each, supported by strength in metal stocks and improving demand signals from China.
The Sensex closed at 85,041.45, down 367.25 points or 0.43 per cent from its previous close of 85,408.70, while the Nifty fell 99.80 points or 0.38 per cent to settle at 26,042.30. The broader market witnessed mixed trends with 1,690 advances against 2,540 declines among 4,379 stocks traded on the BSE.
Gainers and losers
Among Nifty gainers, Titan Company led with a 2.17 per cent rise to ₹3,994.00 from its previous close of ₹3,909.30, followed by Hindalco Industries, which gained 0.99 per cent to close at ₹873.00 from ₹864.45. Nestle India added 0.82 per cent to reach ₹1,270.00 from ₹1,259.70, while NTPC rose 0.53 per cent to ₹324.25 from ₹322.55 and Cipla gained 0.51 per cent to end at ₹1,504.00 from ₹1,496.30.
On the losing side, Asian Paints fell 1.40 per cent to ₹2,746.60 from ₹2,785.50, Shriram Finance declined 1.37 per cent to ₹960.40 from ₹973.70, and Bajaj Finance dropped 1.30 per cent to ₹998.50 from ₹1,011.70. TCS slipped 1.27 per cent to ₹3,276.80 from ₹3,319.00, while Tech Mahindra fell 1.16 per cent to close at ₹1,612.50 from ₹1,631.50.
“Domestic equities ended lower today as thin year-end trading volumes and a cautious mood ahead of upcoming earnings prompted broad-based profit booking,” said Vinod Nair, Head of Research at Geojit Investments Limited. “The optimism around the Santa Claus rally has diminished amid the absence of fresh catalysts, such as progress on a possible US-India trade agreement, while continued FII outflows weighed on the Indian rupee.”
FII outflows
Foreign institutional investors sold equities worth ₹1,721 crore in the previous session, marking the third consecutive day of net selling. The Indian rupee weakened by 23 paise to close at 89.94 against the US dollar, pressured by sustained foreign fund outflows and higher crude oil prices.
Jateen Trivedi, VP Research Analyst at LKP Securities, noted that “the rupee traded weaker near 89.80, down about 0.07 per cent, as the absence of FII buying kept equity markets under pressure.” He added that “rising bullion and non-agricultural commodity prices have added pressure on the rupee due to higher import costs,” with the currency expected to trade in the 89.45-90.25 range next week.
Sectoral split
Sectoral indices ended mostly in the red, with Nifty Financial Services down 0.49 per cent at 27,430.75 and Nifty Bank falling 0.29 per cent to 59,011.35. However, the Defence index emerged as the week’s top gainer, rallying over 3 per cent, while the PSU Bank index shed nearly 1 per cent.
Ponmudi R, CEO of Enrich Money, observed that “the railway sector outperformed, reflecting investor confidence in sustained government capital expenditure, strong order inflows, and long-term visibility on infrastructure spending.” He noted that Nifty’s “26,000 support zone remains technically significant, coinciding with the 20-day EMA, heavy Put OI accumulation, and the classic Pivot S1 level.”
Ajit Mishra, SVP Research at Religare Broking, said, “In the absence of any major triggers, consolidation is likely to persist amid subdued activity. However, news-based sectoral moves may continue to offer selective trading opportunities.”
Crude oil prices edged higher globally, with Brent crude rising 0.4 per cent to $62.48 per barrel following geopolitical developments and increased US pressure on Venezuelan oil exports. The Nifty Midcap 100 declined 0.23 per cent to 60,314.45, while the Nifty Smallcap 100 fell 0.08 per cent to 17,695.10.
Cautious Outlook
Looking ahead, market participants expect cautious sentiment to continue as investors brace for the upcoming earnings season. “Key drivers will include progress in India-US trade talks, rupee stability, FII trends, and movements in commodity prices,” Nair said, adding that attention will turn to next week’s industrial and manufacturing output figures, manufacturing PMI, and US FOMC minutes.
Published on December 26, 2025
