Indian Markets Brace for Subdued Start on Wednesday
India's key stock market indices, the Sensex and Nifty 50, are poised for a largely unchanged opening on Wednesday, December 24, 2025. The muted sentiment stems from a clash between positive global cues and persistent headwinds from foreign capital outflows and significantly reduced trading activity typical of the holiday season.
Global Optimism Meets Local Caution
Early indicators pointed to a flat start. The Gift Nifty futures, which trade on the NSE International Exchange, were seen at 26,234 points as of 7:46 AM Indian Standard Time. This level suggests the benchmark Nifty 50 index will open near its previous close of 26,177.15 points.
The positive global cue came from Wall Street, where stocks gained overnight. This rally was fueled by data showing the U.S. economy grew faster than anticipated in the third quarter, powered by robust consumer spending. Asian markets mirrored this optimism, trading about 0.3% higher.
Analysts noted that a strong U.S. Gross Domestic Product (GDP) reading is generally favorable for Indian IT and pharmaceutical companies. These sectors derive a substantial portion of their revenue from the world's largest economy.
Persistent Foreign Outflows Dampen Sentiment
However, the domestic market's momentum is being checked by continuous selling from foreign institutional investors (FIIs). Provisional data from the exchanges revealed that FIIs sold Indian shares worth 17.95 billion rupees (approximately $215 million) on Tuesday alone.
This selling spree has been a defining trend for December and the entire year. So far this month, foreign portfolio investors have pulled out a net $1.3 billion from Indian equities. The total outflow for the calendar year 2025 has reached a staggering $17.7 billion, creating a significant overhang on market performance.
Compounding the issue is a sharp decline in trading volumes. Turnover in the cash market on Tuesday was roughly 9% lower than the previous session. More strikingly, it was about 15% below the average daily turnover recorded in November on the National Stock Exchange of India (NSE). This thinning of trade is a seasonal phenomenon observed globally as major financial centers approach the Christmas and New Year holidays.
Key Stocks in Focus on December 24
Despite the overall muted trend, specific stocks are likely to see action based on recent corporate developments:
• Emcure Pharmaceuticals: The company announced that the U.S. Food and Drug Administration (USFDA) classified its manufacturing facility in Gujarat as "No Action Indicated" following a recent inspection. This is a positive regulatory outcome.
• Vikran Engineering: The firm has received a major order valued at 20.35 billion rupees for the development of 600 MW solar power projects in the state of Maharashtra.
• Coal India: The state-owned mining giant's board has granted in-principle approval for the separate listing of two of its subsidiaries: South Eastern Coalfields Limited and Mahanadi Coalfields Limited. This move is part of the government's broader divestment strategy.
In summary, Indian equities are caught between supportive global economic data and persistent local challenges. While a strong U.S. economy benefits export-oriented sectors, the twin pressures of foreign capital flight and evaporating liquidity are likely to keep the benchmarks range-bound in the final trading sessions of the year.
