Indian stock markets welcomed the final trading day of the calendar year 2025 with modest gains, as both key benchmark indices opened in positive territory. The BSE Sensex and the Nifty50 edged higher, reflecting cautious optimism in a session marked by thin global participation due to New Year holidays.
Market Opens Firm on Year's Last Session
At 9:17 AM on Wednesday, December 31, 2025, the Nifty50 was trading at 26,015.70, registering a gain of 77 points or 0.30%. The BSE Sensex stood at 84,901.19, climbing 226 points or 0.27%. This upward move placed the Nifty firmly above the psychologically significant 26,000 mark as investors looked to close the year on a steady note.
Analysts See Range-Bound Trade, Pin Hopes on Earnings
Market experts believe the indices are likely to trade in a narrow range with selective buying interest. Participation is expected to remain subdued with several major global markets shut for holidays. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, provided a nuanced outlook.
"The market has the potential for a directional move upwards but is being weighed down by sustained FII selling and absence of fresh triggers," he stated. He pointed to upcoming events that will shape the market trajectory, including auto sales data for December, Q3 corporate results, budget expectations, and global cues like potential Federal Reserve actions in 2026.
Dr. Vijayakumar emphasized the critical role of corporate earnings. "The Q3 results have to be watched carefully for indications of uptick in earnings. Earnings growth will be the single most important factor determining the market trend in 2026. The FII flows in 2026, too, will depend on the earnings performance and expectations surrounding that," he explained.
Global Cues and Institutional Activity
Overnight, Wall Street ended marginally lower after a volatile session. The S&P 500 and Nasdaq slipped slightly as losses in technology and financial shares offset gains in communication services. Despite this, global equities are on track for their strongest annual performance in six years, fueled by US Fed rate cuts and AI-driven optimism.
On the institutional front, data from Tuesday showed a clear divergence: Foreign Portfolio Investors (FPIs) were net sellers, offloading Indian equities worth Rs 3,844 crore. In a contrasting move, Domestic Institutional Investors (DIIs) provided robust support, purchasing shares worth Rs 6,160 crore, thereby cushioning the market from FPI outflows.
In the commodities space, gold and silver saw a dip in early trade but remained poised to achieve record annual milestones, capping a year of notable gains for precious metals.
As the year concludes, the market's focus swiftly turns to the immediate future. The upcoming quarterly earnings season, the Union Budget, and the flow of foreign capital will be the primary drivers determining whether the early green of the last day translates into a sustained rally for Indian equities in 2026.
