Benchmark Indices Close Flat Amid Year-End Caution and F&O Expiry Volatility
| Index | Price | Change | % Chg |
| Nifty 50 | 25,938.85 | 3.25 | -0.01% |
| Nifty Bank | 59,171.25 | 238.90 | +0.41% |
| Nifty Financial | 27,382.80 | 19.30 | +0.07% |
| BSE SENSEX | 84,675.08 | 20.46 | -0.02% |
Indian equity markets ended the second-last trading session of 2025 almost unchanged, extending their recent losing streak as monthly futures and options (F&O) expiry, thin year-end volumes, and persistent foreign fund outflows kept investors cautious. The Sensex slipped just 20 points to close at 84,675.08, while the Nifty 50 ended virtually flat at 25,938.85, down a marginal 0.01 percent.
The session was marked by intraday volatility, with early gains failing to sustain amid selling pressure in IT and select consumer stocks. Despite supportive global cues and a firmer rupee, the overall sentiment remained subdued as institutional participation stayed muted.
A market strategist said, “Expiry-day volatility combined with year-end portfolio rebalancing is keeping the market directionless. Clear trends are likely only when institutions return in full force in the new year.”
Also Read : India’s IPO Activity In 2025 Relied Strongly On Institutional Participation
Sensex, Nifty Extend Weekly Losses as Foreign Selling Persists
The Sensex and Nifty have now declined nearly 1 percent over the past five sessions, weighed down by steady foreign institutional investor (FII) selling and low trading volumes typical of the year-end period. Global funds were seen trimming risk ahead of 2026, while quarterly changes in Nifty indices also triggered stock-specific flows.
ICICI Bank and HDFC Bank witnessed outflows due to index rebalancing, whereas stocks such as Maruti Suzuki, Eicher Motors, and Asian Paints attracted selective buying interest. However, this rotation was not strong enough to lift the broader indices decisively into positive territory.
IT Stocks Drag as Eternal Slides on Blinkit CFO Exit
On the 30-stock Sensex, Eternal, Infosys, Asian Paints, UltraTech Cement, and Bajaj Finance were among the top losers, falling between 1 and 2 percent. Eternal dropped nearly 2 percent after reports that the chief financial officer of its quick-commerce arm, Blinkit, had resigned, reviving concerns around management stability amid rising competition.
The IT sector remained under pressure, reflecting cautious sentiment around global tech spending and valuation concerns. Realty, consumer durables, healthcare, and defence stocks also ended lower, losing between 0.5 and 1 percent.
Broader markets underperformed frontline indices, with mid-cap stocks down 0.2 percent and small-caps shedding 0.3 percent, highlighting selective risk aversion.
PSU Banks and Metals Provide Support to the Market
While IT weighed on the indices, PSU banks and metal stocks offered meaningful support. The PSU Bank index gained nearly 2 percent, aided by improved asset quality expectations and clarity around capital-raising plans by select lenders.
Metal stocks jumped over 2 percent, tracking higher global copper and aluminium prices, which are expected to improve realisations for domestic producers. Auto stocks also gained around 1 percent, supported by robust industrial production data and optimism ahead of monthly sales numbers.
Top gainers on the Nifty included Shriram Finance, Tata Steel, Hindalco Industries, M&M, and Bajaj Auto, while losers featured Max Healthcare, Eternal, Apollo Hospitals, InterGlobe Aviation, and Tata Consumer.
Top Gainers and Losers in Today’s Session
The market witnessed a mixed trend, with select stocks posting notable gains while others faced selling pressure amid cautious investor sentiment and stock-specific developments.
Top Gainers: Bajaj Auto (+2.32%), Hindalco Industries (+2.12%), Shriram Finance (+1.99%), Tata Steel (+1.96%), and Mahindra & Mahindra (+1.89%).
Top Losers: Eternal (-2.21%), Eicher Motors (-1.92%), Tata Consumer Products (-1.79%), Max Healthcare (-1.64%), and InterGlobe Aviation (IndiGo) (-1.52%).
Sectoral Performance Highlights Selective Buying
Sector-wise, performance remained mixed:
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Top gaining sectors: Metal (+2.03%), Auto (+1.08%)
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Top losing sectors: Realty (-0.84%), Consumer Durables (-0.81%), IT (-0.74%), Oil & Gas (-0.31%), FMCG (-0.29%)
Despite some pockets of strength, most indices ended lower, reflecting the lack of broad-based conviction among investors.
Stock-Specific Action Dominates a Range-Bound Session
Stock-specific moves continued to dominate amid index-level consolidation. Notable gainers included:
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Concord Drugs, up 3.4%, after bagging an order worth Rs 14.71 crore
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Shriram Finance, up 2%, following its first credit rating upgrade post the MUFG deal
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Cupid, up 4%, on plans to set up a new FMCG manufacturing facility in Saudi Arabia
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Timex Group India, up 3.4%, as promoters exercised an oversubscription option in its OFS
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Orient Technologies, up over 20%, after shareholder approval for a bonus issue
On the flip side, Gujarat Kidney and Super Speciality shares ended 9 percent lower on debut, despite listing at a premium, reflecting profit booking after strong subscription.
Market Breadth Mixed as Highs and Lows Reflect Divergence
Market breadth remained weak, with decliners outnumbering advancers. More than 100 stocks hit fresh 52-week highs, including Jindal Stainless, NALCO, AIA Engineering, Shriram Finance, UPL, Maruti Suzuki, and Canara Bank. At the same time, nearly 200 stocks touched their 52-week lows, such as Happiest Minds, Tata Chemicals, Dixon Technologies, Colgate Palmolive, Godrej Agrovet, and ACC.
This divergence underscores a market driven by stock-specific fundamentals rather than broad momentum.
Daily Market Action
Advancers: 1,410
Decliners: 1,723
52-week High: 49
52-week Low: 143
High Band Hitters: 72
Low Band Hitters: 58
Key Factors Influencing Market Movement
Several factors shaped Tuesday’s market action:
- Value buying supports the market near key levels:
After the Nifty declined for three consecutive sessions, selective value buying emerged in quality large-cap stocks. Investors used recent weakness to accumulate fundamentally strong names, helping the indices recover from intraday lows despite overall cautious sentiment. - Auto and metal stocks attract buying interest:
Auto shares saw renewed demand ahead of the release of monthly sales data, which is expected to offer cues on the sustainability of consumption growth. Metal stocks also gained, tracking higher global copper and aluminium prices, which improved earnings visibility for domestic producers. - Positive global cues provide limited support:
Asian equity markets traded in positive territory, with Hong Kong’s Hang Seng and Japan’s Nikkei 225 posting gains. US futures were also marginally higher, offering mild support to domestic markets, although global optimism failed to translate into a strong risk-on rally. - Rupee strength offers marginal relief:
The Indian rupee strengthened against the US dollar, supported by a weaker greenback and robust domestic macro data. However, continued foreign fund outflows and higher crude oil prices capped sharp appreciation in the local currency. - Strong IIP data boosts economic sentiment:
India’s industrial production growth rose to a two-year high in November, led by strong performance in manufacturing and mining. The data reinforced confidence in domestic economic momentum, lending support to cyclical sectors such as auto and metals. - Monthly F&O expiry adds to intraday volatility:
The session coincided with the weekly and monthly expiry of Nifty derivative contracts. Position rollovers and unwinding by traders led to sharp intraday swings, keeping benchmark indices range-bound and preventing a decisive directional move.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said, “A clear directional change will happen only early in the new year when large institutions are back in action. Weakness can be used to nibble at high-quality large caps.”
Technical View Suggests Indecision Near Key Support
Technically, the Nifty formed a small-bodied doji candle near an important support zone, signalling indecision after recent declines. The index has slipped below the 21-day EMA and the middle Bollinger Band, while the RSI has entered a bearish crossover, reinforcing short-term caution.
Immediate support is seen in the 25,850–25,870 range. A decisive break below this zone could intensify bearish sentiment, while resistance is placed near 26,000–26,100. Analysts believe a sustained move above these levels could confirm a near-term reversal.
Anand James, Chief Market Strategist at Geojit Investments, noted, “We expect early pullback attempts, but a push above 25,970–26,000 is needed to play such upswings with confidence.”
Volatility Eases, Rupee Strengthens
The India VIX eased by 0.43 percent to 9.68, indicating a moderation in near-term volatility expectations. Meanwhile, the rupee traded in a range of 89.72–89.98 during the session before closing stronger, offering some comfort to equity markets amid foreign outflows.
Outlook: Markets in Wait-and-Watch Mode Heading Into 2026
With year-end rebalancing largely done, markets are expected to remain range-bound in the near term. Investors are now looking ahead to clearer global cues, progress on US-India trade talks, and the upcoming Q3 earnings season for direction in 2026.
As one fund manager summed it up, “This is a classic pause before the next trend. The real action will begin once liquidity and earnings visibility improve.”
FAQs Sensex And Nifty End Slightly Lower
Why did the Sensex and Nifty close flat despite gains in PSU banks and metal stocks?
The benchmark indices ended flat as gains in PSU banks and metal stocks were offset by losses in IT, FMCG, and consumer-oriented stocks, while monthly F&O expiry and thin year-end volumes kept overall sentiment cautious.
How did monthly F&O expiry impact market volatility and index movement?
Monthly F&O expiry led to position unwinding and rollovers, resulting in sharp intraday swings and preventing the market from sustaining early gains, keeping indices range-bound throughout the session.
Why were IT stocks under pressure even as global cues remained supportive?
IT stocks faced selling pressure due to valuation concerns, cautious outlook on global tech spending, and persistent foreign institutional selling, despite stable global markets.
What supported PSU bank stocks during an otherwise subdued trading session?
PSU bank stocks gained on improving asset quality trends, expectations of better capital adequacy, and optimism around fundraising plans and government stake dilution initiatives.
Why did market breadth remain negative even though benchmark indices closed almost unchanged?
While index heavyweights provided selective support, broader market stocks witnessed selling pressure, leading to more decliners than advancers and reflecting risk aversion among investors.
How did rupee movement and IIP data influence market sentiment?
The rupee’s strength against the US dollar and strong industrial production data provided macro-level support, but these positives were insufficient to offset concerns around foreign fund outflows.
What should investors watch after the year-end session as markets head into 2026?
Investors should track global cues, FII flow trends, Q3 earnings announcements, policy signals, and key technical levels around Nifty 25,850–26,000 for clearer directional cues.
