Sensex, Nifty End Marginally Lower as Pre-Holiday Volatility and Sectoral Selling Weigh on Markets
| Index | Price | Change | % Chg |
| Nifty 50 | 26,142.10 | 35.05 | -0.13% |
| Nifty Bank | 59,183.60 | 115.95 | -0.20% |
| Nifty Financial | 27,565.50 | 19.05 | -0.07% |
| BSE SENSEX | 85,408.70 | 116.14 | -0.14% |
Indian equity benchmarks closed marginally lower on December 24 after a volatile, low-volume session, as investors stayed cautious ahead of the Christmas holiday and continued foreign fund outflows capped risk appetite. The Sensex and Nifty moved largely sideways through the day, struggling to sustain early gains amid sectoral pressure from FMCG, PSU banks, pharma, oil & gas, and IT stocks.
The market will remain closed on Thursday, December 25, on account of Christmas, further contributing to subdued participation in the holiday-shortened week.
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Benchmark Indices Drift Lower Amid Thin Volumes and Lack of Fresh Triggers
The BSE Sensex ended the session down 0.14 percent at 85,408.70, while the NSE Nifty 50 slipped 0.13 percent to close at 26,142.10. Both indices failed to build on modest early gains, reflecting investor reluctance to take fresh positions ahead of the year-end break.
Markets opened on a cautious note and traded within a narrow range for most of the session, as persistent selling by foreign portfolio investors and profit booking offset supportive global cues. Analysts noted that the absence of major domestic triggers and muted global signals kept traders largely on the sidelines.
“Pre-holiday sessions typically see reduced risk appetite, and today’s range-bound trade reflects that caution,” said a market participant tracking institutional flows.
Top Gainers and Losers Reflect Stock-Specific Rotation Amid Cautious Trade
Despite the benchmarks ending marginally lower, stock-specific action remained vibrant, with investors selectively positioning themselves ahead of the holiday break. Several frontline stocks recorded notable gains, while profit-booking and sectoral pressure weighed on others.
Top Gainers on the Nifty 50
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Trent gained 2.26 percent, supported by sustained momentum in organised retail and strong relative strength.
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Shriram Finance rose 1.69 percent, extending recent gains amid optimism around credit growth and improving asset quality.
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Apollo Hospitals advanced 1.46 percent, benefiting from defensive buying in select healthcare names.
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Bajaj Auto added 0.82 percent, aided by stable domestic demand expectations.
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UltraTech Cement climbed 0.79 percent, tracking resilience in infrastructure-linked plays.
Top Losers on the Nifty 50
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InterGlobe Aviation (IndiGo) fell 1.55 percent, emerging as the biggest drag amid profit booking.
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Adani Enterprises slipped 1.37 percent, extending recent volatility.
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Dr Reddy’s Laboratories declined 1.28 percent as pharma stocks came under pressure.
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Wipro lost 1.20 percent, reflecting weakness across IT stocks.
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Tata Motors PV (TMPV) dropped 1.10 percent, weighed down by cautious sentiment in auto counters.
Sectoral Gainers and Losers Highlight Defensive Tilt in the Market
Sectoral trends during the session underscored a defensive bias, with investors preferring selective pockets even as broader participation remained muted.
Top Gaining Sectors
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Media rose 0.44 percent, supported by stock-specific buying.
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Realty gained 0.17 percent, helped by selective accumulation after recent consolidation.
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Metal added 0.15 percent, tracking firm global metal prices and continued strength in non-ferrous counters.
Top Losing Sectors
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Oil & Gas declined 0.76 percent, emerging as the worst-performing sector amid profit booking.
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Information Technology fell 0.51 percent, pressured by concerns around changes in US H-1B visa norms.
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Pharma slipped 0.51 percent, as investors rotated out of defensives.
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Consumer Durables lost 0.48 percent, reflecting subdued discretionary demand sentiment.
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FMCG eased 0.42 percent, weighing on the benchmarks despite its defensive nature.
Market Breadth Signals Caution Despite Stock-Level Strength
While several stocks touched fresh 52-week highs, overall market breadth remained negative, reinforcing the cautious undertone.
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Advancers: 1,361
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Decliners: 1,770
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52-week highs: 90
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52-week lows: 60
Analysts noted that the divergence between headline indices and stock-level action suggests ongoing sectoral and thematic rotation rather than broad-based selling.
The India VIX fell 1.99 percent to 9.19, indicating subdued volatility expectations even as markets consolidated.
More than 90 stocks hit 52-week highs, including Hindustan Copper, Manappuram Finance, City Union Bank, Vedanta, Shriram Finance, Hindalco, Vodafone Idea, NMDC and Bharat Forge, pointing to selective strength beneath the surface.
Sectoral Performance Shows Broad Weakness Despite Pockets of Resilience
Sectoral indices ended mostly in the red, barring media and metal stocks, which managed modest gains. Pressure was visible across defensives and cyclicals alike.
Key sectoral trends included:
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Oil & Gas, IT, Pharma and PSU Bank indices fell around 0.4–0.5 percent
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FMCG and consumer durables also ended lower, weighing on benchmarks
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Media, Realty and Metal indices posted marginal gains
The BSE midcap index slipped 0.3 percent, while the smallcap index ended flat, indicating selective buying at lower levels even as broader sentiment remained cautious.
Stock-Specific Action Keeps Traders Engaged Amid Flat Market
Despite muted headline indices, several stocks saw sharp moves on news flow and corporate developments.
Notable gainers included:
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Oswal Pumps, up 3 percent on securing a ₹180-crore order
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Coal India, which gained after receiving in-principle approval to list South Eastern Coalfields and Mahanadi Coalfields
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VIP Industries, which surged 9.5 percent after 36.8 million shares changed hands in a block trade
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Rail Vikas Nigam, up 1 percent after appointing Saleem Ahmad as CMD
On the downside, Monte Carlo Fashions slipped 3 percent despite securing multiple letters of award from Madhya Pradesh Urja Vikas Nigam.
Among Sensex stocks, InterGlobe Aviation, Sun Pharma, Asian Paints, Reliance Industries, Hindustan Unilever and Tata Steel were the biggest drags, while Trent, UltraTech Cement, Maruti and Power Grid provided limited support.
IT Stocks Slip on US Visa Policy Changes
Information technology stocks declined around 0.5 percent, extending losses after reports that the US Department of Homeland Security plans to amend the H-1B visa selection process.
Under the proposed framework, visa allocation will shift away from a lottery system toward prioritising higher-skilled and higher-paid foreign workers, raising concerns over near-term cost pressures and workforce deployment for Indian IT firms.
Market participants noted that while the long-term impact may be manageable, sentiment remains cautious in the near term, especially in low-volume sessions.
Technical Charts Signal Resistance at Higher Levels
From a technical perspective, the Nifty continued to face stiff resistance near the 26,230–26,235 zone, which coincides with the previous session’s highs. For the second consecutive session, the index failed to post a decisive close above this band.
On daily charts, Nifty formed a small-bodied candle with pronounced upper wicks, highlighting selling pressure at higher levels.
Key technical levels to watch:
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Resistance: 26,200–26,250; a breakout could open the path toward 26,350 and 26,500
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Support: 26,050–26,000, aligned with the 20-day EMA
Bank Nifty Remains Under Pressure Below Key Trendline
Bank Nifty ended the session down 0.20 percent at 59,183.60, continuing to trade below its upward-sloping trendline broken on December 17. Despite multiple intraday attempts, the index failed to reclaim this crucial resistance.
Over the past five sessions, Bank Nifty has consistently formed candles with long upper wicks, indicating supply emerging at higher levels.
According to technical analysts:
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Immediate support: 59,000–58,900
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Downside risk: Below 58,900, the index could drift toward 58,600 and 58,300
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Upside hurdle: 59,500–59,600 remains a strong resistance zone
Rupee Weakens Amid FII Outflows and Dollar Demand
In the currency market, the rupee pared early gains and closed 16 paise lower at 89.79 per dollar, pressured by continued foreign capital outflows and increased demand for dollars from bullion importers.
Traders said currency volatility could remain elevated, though RBI liquidity measures such as OMOs and USD/INR buy-sell swaps are expected to provide some stability.
Global Cues Mixed as Investors Await Fresh Direction
Asian markets showed mixed trends, with Japan’s Nikkei and South Korea’s Kospi ending lower, while Shanghai and Hong Kong closed in the green. European markets traded marginally higher, and US equities ended higher on Tuesday.
Stronger-than-expected US GDP data pointed to economic resilience, though rising unemployment tempered optimism. Gold continued to rally on a softer dollar and geopolitical risks, while Brent crude hovered near multi-year lows, supporting a benign inflation outlook.
Outlook: Consolidation Likely to Continue Post-Holiday
With markets heading into the Christmas break and the year drawing to a close, analysts expect muted activity and consolidation to persist in the near term. Investors are likely to remain selective, tracking global cues, FII flows, currency movements and upcoming trade developments.
“The broader structure remains intact, but a decisive breakout above resistance levels is needed for fresh momentum,” said a technical analyst, adding that buy-on-dips strategies may work selectively in fundamentally strong stocks.
FAQs Sensex, Nifty End Lower in Volatile Session
Why do Sensex and Nifty often trade sideways during holiday-shortened weeks?
Holiday-shortened trading weeks usually see lower participation from institutional investors, especially foreign funds. With reduced liquidity and fewer global cues, markets tend to consolidate rather than take decisive directional moves, even if underlying stock-specific activity continues.
What does selective buying in top gainers indicate when benchmark indices fall?
When benchmarks decline but select stocks continue to rise, it signals sectoral rotation rather than panic selling. Investors often reallocate capital toward fundamentally strong or defensive names, indicating underlying market stability despite headline volatility.
How does a falling India VIX influence investor strategy during volatile sessions?
A declining India VIX reflects lower perceived market risk. Even when indices move sideways or correct marginally, a low volatility index reassures investors that sharp drawdowns are less likely, encouraging buy-on-dips strategies instead of aggressive selling.
Why do IT and pharma stocks react sharply to changes in US immigration policy?
Indian IT and pharma companies derive a significant portion of revenue from the US market. Policy changes affecting H-1B visas can raise operational costs, disrupt onsite staffing models, and impact margins, making these sectors particularly sensitive to US regulatory developments.
What does strong resistance near key Nifty levels signal for short-term traders?
Repeated failure to break above resistance zones suggests supply pressure at higher levels. For traders, this often means markets may consolidate further unless supported by fresh triggers such as earnings upgrades, policy clarity, or sustained foreign inflows.
Why do foreign investor outflows impact the rupee and equities simultaneously?
When foreign investors sell Indian assets, demand for the US dollar rises, pressuring the rupee. This currency weakness can further weigh on equities, creating a feedback loop where capital outflows affect both financial markets and exchange rates.
How should long-term investors interpret mixed sectoral performance in a range-bound market?
Mixed sectoral trends typically indicate a transition phase rather than a market top. Long-term investors can use such periods to accumulate quality stocks in outperforming sectors while avoiding over-leveraged or momentum-driven plays.
