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Benchmarks Trade Lower in Early Session
Mumbai (Maharashtra), December 24:
Indian equity markets opened flat to marginally lower on Wednesday as continued Foreign Portfolio Investor (FPI) selling weighed on sentiment ahead of the Christmas holiday.
The Nifty 50 traded at 26,154.20, down 12.85 points or 0.05 per cent in early trade. The BSE Sensex slipped 93.51 points, or 0.11 per cent, to 85,431.33.
FPI Outflows Cap Market Gains
Market experts said supportive domestic fundamentals failed to lift indices due to profit booking and foreign fund outflows during the holiday-shortened week.
Ajay Bagga, Banking and Market Expert, said Indian markets were unable to cross key resistance levels despite positive cues. He noted that two consecutive days of FPI selling and overbought conditions, as indicated by PCR levels, triggered cautious trading.
He added that investors may continue booking profits during the shortened trading week.
RBI Liquidity Measures Offer Support
Bagga said liquidity conditions are likely to improve after the Reserve Bank of India announced open market operations worth ₹2 lakh crore. The RBI also introduced a USD 10 billion dollar-rupee swap.
These steps may support liquidity and offer some relief to the rupee. However, Bagga pointed out that the rupee remains the worst-performing Asian currency in calendar year 2025.
Rupee Weakness Impacts Sentiment
Despite a weaker US dollar index at 97.7, the rupee depreciated by five paise against the dollar on Tuesday. Currency weakness continues to discourage fresh FPI inflows.
On Tuesday, domestic institutional investors bought equities worth ₹3,812.37 crore. Foreign institutional investors sold equities worth ₹1,794.80 crore.
Nifty in Consolidation Phase
Ponmudi R, CEO of Enrich Money, said the Nifty 50 is currently consolidating below resistance after a strong rally.
He said immediate support lies at 26,100, supported by strong put open interest. The 26,000–25,950 zone forms a solid demand base. As long as the index stays above 26,000 on a closing basis, the short-term outlook remains mildly bullish.
Global Markets Provide Positive Cues
In the US, economic data remained strong. Q3 GDP growth reached a two-year high of 4.3 per cent. Consumer spending rose 3.5 per cent, while exports increased by 8.8 per cent.
US markets ended higher, supported by AI-led investments and increased defence spending. The S&P 500 closed at a record high, while the Dow and Nasdaq extended gains for the fourth straight session.
Asian Markets Mostly Higher
Asian markets traded mostly positive on Wednesday. Japan’s Nikkei rose 0.08 per cent, Hong Kong’s Hang Seng gained 0.34 per cent, and South Korea’s Kospi advanced 0.06 per cent.
Taiwan’s weighted index climbed 0.12 per cent, while Singapore’s Straits Times traded lower. The Australian index slipped slightly amid concerns of potential rate hikes by the RBA in 2026.
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