Market overview
Indian equities started the last trading week of 2025 on a weak note. Benchmarks opened marginally higher but quickly lost momentum as traders booked profits amid thin year‑end volumes, persistent foreign fund outflows and lack of major domestic triggers. The BSE Sensex slid 0.41 % to close at 84,695.54, while the Nifty 50 fell 0.38 % to 25,942.10, slipping below the psychological 26,000 level. The Nifty Bank settled 0.13 % lower at 59,932, mirroring the cautious mood. Mid‑cap and small‑cap indices also declined, highlighting broad‑based selling pressure.
Top indices at the close of 29 Dec 2025
| Index | Close (approx.) | Change* | Notes |
|---|---|---|---|
| Nifty 50 | 25,942.10 | −0.38 % | slipped below 26k; profit‑booking led fall |
| BSE Sensex | 84,695.54 | −0.41 % | 4th straight decline |
| Nifty Bank | 59,932 | −0.13 % | banking shares weak |
| BSE Midcap | 46,508.89 | −0.45 % | mid‑caps under pressure |
| BSE Smallcap | 43,601.84 | −0.61 % | broader market weaker |
*percentage change versus previous close; approximate values.
Sectoral performance
| Sector/index | Performance | Observations |
|---|---|---|
| Media | +0.93 % | only sector with meaningful gains; investors rotated into defensive media names |
| FMCG | +0.11 % | marginally higher as defensive buying supported stocks like Hindustan Unilever and Nestlé |
| PSU Bank | +0.05 % | small gains; selective buying in public‑sector banks |
| Metal | flat to slightly positive | Tata Steel and some metal shares outperformed |
| IT | −0.75 % | heaviest drag; profit‑taking in large‑cap IT names such as TCS and HCL Tech |
| Realty | −0.67 % | extended previous week’s losses; cautious outlook on real‑estate demand |
| Auto | −0.53 % | selling in auto shares following weak monthly sales expectations |
| Pharma/healthcare | around −0.4 % | profit‑booking after recent rally |
| Power/Utilities | down 0.4–0.9 % | energy stocks, including Reliance Industries, weighed on indices |
Overall, except for media and selective defensive sectors, most sectoral indices closed in the red. IT, realty and auto were the notable laggards.
Key market statistics
| Statistic | Value/Observation |
|---|---|
| Advances vs declines | ~1,022 advances, 2,188 declines, 84 unchanged out of ~3,300 traded stocks – broad negative breadth. |
| 52‑week highs/lows | 76 stocks hit new 52‑week highs; 130 stocks touched 52‑week lows, reflecting profit‑taking and weakness in small‑caps. |
| FII/DII flows | Foreign institutional investors (FIIs) sold about ₹317 crore while domestic institutional investors (DIIs) bought roughly ₹1,773 crore on a net basis. Persistent FII selling remains a headwind. |
| India VIX (volatility gauge) | jumped ~6 % to around 9.7, but remains below long‑term averages; the increase signalled caution ahead of monthly F&O expiry. |
| Rupee movement | The rupee depreciated to around ₹89.95 per US dollar, adding to risk‑off sentiment. |
Top gainers and losers (Nifty 50)
| Top gainers | Brief notes | Top losers | Brief notes |
|---|---|---|---|
| Tata Steel | up ~1.9 %; metal sector strength on resilient steel prices | Adani Ports & SEZ | down ~2.3 %; selling pressure in port stocks |
| Tata Consumer Products | modest gain; defensive FMCG demand | HCL Technologies | declined after profit‑booking in IT names |
| Asian Paints | buying interest in consumer discretionary | Power Grid Corp. | slipped due to weakness in power/utilities index |
| Grasim Industries | positive despite broad weakness; chemicals segment resilient | Trent | fell amid profit booking in retail stocks |
| Nestlé India | defensive buying lifted stock | Adani Enterprises / BEL | selective selling; Bharat Electronics also fell after recent rally |
Other notable movers: Hindustan Unilever, Eternal, NTPC and Axis Bank closed higher; Adani Ports, Power Grid, HCL Tech and Trent were among the biggest laggards. In the broader market, more than 100 stocks such as Hindustan Copper, Vedanta and Titan Company hit 52‑week highs, while over 180 names including Dixon Technologies and ACC hit 52‑week lows.
What moved the market
- Profit‑booking and FII selling – After a sharp rally in November and early December, investors booked profits ahead of the year‑end. Foreign investors continued to pare holdings, citing global trade uncertainties, stretched valuations and a weaker rupee. Net FII selling of ~₹317 crore contrasted with DII buying of ~₹1,773 crore.
- Sectoral drag – Weakness in IT, realty, auto and pharma stocks pulled the indices lower. Heavyweights like HCL Technologies, Power Grid and Trent weighed on the market, while metal and FMCG names offered some resilience.
- Global cues – US equity futures were largely flat and Nasdaq 100 futures slipped about 0.2 %, suggesting a muted Wall Street lead. European stocks briefly touched record highs but traded flat later in the day. Japanese markets declined, with the Nikkei falling 0.44 % as tech stocks lagged. Base‑metal prices (copper) retreated after hitting record highs, while gold and silver prices crashed from historic peaks, denting sentiment toward commodity stocks. The rupee’s weakness against the US dollar and rising US Treasury yields also weighed on foreign inflows.
- Volatility and derivatives expiry – India VIX climbed roughly 6 % to near 9.7. Monthly F&O expiry scheduled later in the week led traders to trim positions, adding to intraday volatility.
Global cues snapshot
| Asset/Region | Latest trend (approx.) | Impact |
|---|---|---|
| US indices | S&P 500 futures flat; Nasdaq 100 futures down ~0.2 % | provided no positive lead for Indian markets |
| Europe | STOXX 600 near record; resource stocks up on metals rally | early boost offset later by profit‑booking |
| Japan | Nikkei fell ~0.44 % as tech names sold off | signalled caution in Asian equities |
| Commodities | Gold and silver fell sharply after hitting record highs; copper eased from record high | triggered profit‑booking in metal stocks despite resilience in select names |
| Rupee/USD | rupee weakened to ~₹89.95; FII outflows continued | added to risk‑off sentiment |
| India VIX | rose ~6 % to around 9.7 | indicates rising short‑term volatility |
Stocks to watch
| Company/stock | Reason to watch |
|---|---|
| Ceigall India (Ceigall Infra Projects) | subsidiary won a ₹1,000 + crore Indore–Ujjain Greenfield highway contract from MPRDC. Could boost revenue visibility. |
| Arvind Fashions | announced acquisition of Flipkart’s 31.25 % stake in Arvind Youth Brands for ₹135 crore, consolidating its Flying Machine apparel brand. |
| Zepto | quick‑commerce start‑up filed for a ₹110 billion (~$1.22 bn) IPO via the confidential route; watch for listing prospects in 2026. |
| Larsen & Toubro (L&T) | transportation infrastructure arm won a significant order to build a 22.3 km Hyderabad Greenfield radial road; highlights strong order book. |
| Hikal | shares fell after the company disclosed discrepancies in revenue reporting over the past three quarters. Investors may monitor any regulatory action. |
| Diamond Power Infrastructure | received a letter of intent from Hild Projects worth ₹66 crore for power‑cable supply; stock modestly lower despite order. |
| Graphite India | rallied ~4.6 % on heavy volumes, hitting a two‑month high; strong technical momentum could continue if volumes persist. |
| Defence stocks (Midhani, Mazagon Dock, Bharat Dynamics) | surged up to 11 % ahead of the Defence Acquisition Council meeting; traders anticipate fresh orders worth ₹79,000 crore. |
| Realty and railway‑linked stocks | DLF, Brigade Enterprises and Anant Raj declined as real estate index lagged; Indian Railway Finance Corporation and Rail Vikas Nigam fell up to 4 % after multi‑session gains. These names may remain volatile. |
Corporate updates
- Ceigall India’s subsidiary Ceigall Infra Projects will construct the Indore–Ujjain Greenfield four‑lane access‑controlled highway, a contract valued at over ₹1,000 crore awarded by MPRDC.
- Arvind Fashions will purchase Flipkart’s 31.25 % stake in Arvind Youth Brands for ₹135 crore to strengthen the Flying Machine clothing brand.
- Zepto filed confidential papers for a ₹110 billion (~$1.22 bn) IPO, positioning it as one of India’s anticipated listings for 2026.
- L&T’s transportation infrastructure division secured a significant order for the Hyderabad Greenfield radial road project, adding to its robust order book.
- Hikal revealed revenue‑recognition discrepancies across three quarters, resulting in investor concerns and a drop in its share price.
- BirlaNu shares surged ~9 % after a significant block deal; SEPC gained on winning a ₹230 crore order from MOIL; Vikran Engineering and Solarworld Energy rose on new order wins; Timex Group India declined after promoter stake sale.
Outlook and technical levels for 30 Dec 2025
Analysts expect the market to remain in consolidation mode in the near term. Lack of fresh catalysts, holiday‑light trading and F&O expiry could keep indices range‑bound with an underlying cautious tone.
Key technical levels (Nifty 50):
- Immediate resistance: 26,145–26,250 – the index needs to close above this zone to regain momentum.
- Major resistance: 26,300 – a breakout above this level could open room toward 26,500.
- Immediate support: 25,900 – holding above this can prevent deeper corrections.
- Key support zone: 25,700–25,800 – confluence of the 50‑day moving average, previous lows and Fibonacci retracement; a decisive break could drag the index to 25,500.
Bank Nifty levels:
- Support: 58,500–58,800; a base around this zone could lead to a bounce.
- Resistance: 59,500–59,800; sustained trade above 59,500 may allow a retest of the record high near 60,100.
Expected market tone for Tuesday:
- Cautious to neutral – traders may prefer selective, stock‑specific opportunities while overall indices consolidate.
- Volatility likely due to monthly derivatives expiry; intraday swings could remain sharp within the defined range.
- Sector rotation may continue; defensive pockets such as FMCG, media and PSU banks could stay resilient, while IT, realty and auto may remain under pressure.
- Watch global cues – US macro data releases, commodity price movements and foreign fund flows will influence sentiment. A sustained bounce in global markets or clarity on geopolitical tensions could trigger a relief rally, whereas continued weakness abroad might extend the corrective phase.
Conclusion
On 29 December 2025, Indian equities extended their losing streak amid profit‑taking, foreign selling and weak global signals. Broader market breadth remained negative, with most sectors in the red except for media and select defensive areas. While some metal and FMCG names offered support, heavyweights in IT, real estate, auto and power dragged the indices lower. Volatility spiked modestly but remained below long‑term averages. With the Nifty hovering around the 26,000 mark and Bank Nifty around 60,000, traders may see a range‑bound market leading into the final session of the year. Attention will be on upcoming corporate announcements, global market trends and the monthly derivatives expiry to gauge whether consolidation continues or a directional breakout occurs.
