Dalal Street Begins Final Week Of 2025 On A Soft Note, Nifty Over 26K, Sensex Highly Volatile

Indian stock markets geared up for the last trading week of 2025 with a weak sentiment. The BSE Sensex started trading today below 85,150, climbing close to 100 points, while the NSE Nifty50 rang the opening bell near 26,100, rising more than 30 points, at 9:15 AM. Volatility reigned high and both benchmarks started paring their gains soon after markets opened.

In the pre-open session, the Sensex tanked as the Nifty stood nearly flat, giving indications of a tepid session ahead. The Sensex tumbled over 150 points and the Nifty hovered near 26,045, around 9:03 AM.

On the 30-share Sensex, BEL, Infosys, Tata Steel, Eternal, and Trent stood among the early gainers. Meanwhile, the laggards included Adani Ports, Bajaj Finserv, HCL Tech, Reliance, and Axis Bank.

In the broader markets, majority of the indices traded flat. The Nifty Smallcap50 index slipped 0.28 per cent. Sectorally, the Metal index remained among the only three in green, climbing 1 per cent. On the other hand, the Midsmall IT & Telecom index clocked a loss of 0.51 per cent.

With markets transitioning into 2026 and trading volumes expected to remain thin, experts anticipate range-bound movement with a mildly positive bias. Auto sales data and key domestic and global economic indicators are likely to remain in focus, they added.

Year-End Trade Seen Range-Bound

With only a handful of sessions left this year, Indian equity markets are expected to consolidate rather than stage any sharp moves. Analysts pointed out that the ongoing foreign fund outflows could keep volatility elevated but directional clarity limited.

In the previous holiday-shortened week, the  Sensex rose 112.09 points or 0.13 per cent, while the  Nifty gained 75.90 points or 0.29 per cent, reflecting cautious optimism despite intermittent profit booking.

Domestic Data In Focus: IIP, PMI And Auto Sales

On the domestic front, investors will closely track November’s industrial production (IIP) data, which is expected to offer fresh insights into trends across mining, manufacturing and electricity output, said Ajit Mishra, Senior Vice-President (Research) at Religare Broking Ltd.

The final HSBC manufacturing Purchasing Managers’ Index (PMI) reading for December will also be watched for signals on factory activity and demand conditions, particularly as India moves into the new calendar year.

Automobile sales data for November will be another key trigger, offering confirmation on whether the post-GST rationalisation boost in vehicle demand is being sustained, said Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm. Together, these indicators are expected to provide clarity on domestic consumption trends as 2026 approaches.

Global Cues: US Fed Minutes, China Data 

Globally, market participants will be tracking macroeconomic developments from the US, including the minutes of the latest Federal Open Market Committee (FOMC) meeting and updates on the Federal Reserve’s balance sheet, Mishra said. These signals could shape near-term expectations around interest rates, liquidity conditions and global risk appetite.

In addition, key global data points such as US initial jobless claims, manufacturing PMI readings from the US and China, and broader cues from global equity markets are likely to influence sentiment, said Siddhartha Khemka, Head of Research (Wealth Management) at Motilal Oswal Financial Services Ltd.