Nifty, Sensex Open Flat Amid Thin Year-End Volumes

Mumbai, December 29:
Indian equity benchmark indices opened on a flat to mixed note on Monday, tracking thin year-end trading volumes and a lack of fresh triggers. Market experts cautioned that index expiry could bring short-term volatility, even as overall participation remains muted due to holiday-led inactivity.

The Nifty 50 opened at 26,063.35, gaining 21.05 points or 0.08%, while the BSE Sensex started lower at 85,004.75, slipping 36.70 points or 0.04% in early trade.

Year-End Holidays Keep Trading Volumes Low

Market participants largely stayed away from fresh positions as the year-end holiday season reduced overall activity. Experts expect markets to remain flat to mildly negative in the absence of strong domestic or global cues.

Ajay Bagga, Banking and Market Expert, said trading volumes have declined sharply as most investors are on vacation.

“The last three days of an eventful year are here. Volumes are down as most of the working population is on year-end vacations. Indian markets will see the December index expiry for two key indices on Tuesday, which could bring some volatility, even though India VIX remains at historically low single-digit levels,” Bagga told ANI.

Index Expiry May Trigger Short-Term Volatility

Bagga noted that markets have shifted from overbought levels to neutral-to-oversold territory, creating the possibility of a positive move later.

“For now, low volumes and the absence of catalysts may keep markets flat to negative. Profit booking and reluctance to take fresh positions will dominate trading this week,” he added.

He further said that stronger triggers may emerge only later in January 2026, including:

Union Budget 2026
Q3 FY26 corporate earnings recovery
Progress on the US–India trade deal

Broader Markets and Sectoral Performance Mixed

In the broader market:

Nifty Midcap 100 slipped 0.07%
Nifty Smallcap 100 edged up 0.06%

Sector-wise on the NSE:

Nifty Auto gained 0.02%
IT, FMCG, Pharma, and PSU Bank indices traded lower
Nifty Metal outperformed, rising 0.65%

Santa Rally Likely Missing This Year

Market experts believe the traditional year-end ‘Santa rally’ may be absent this year. Instead, precious metals and copper are leading asset-class performance.

Silver briefly touched USD 80 in Asian trade and now ranks as the third-best performing asset, behind gold and Nvidia. Gold, after hitting record highs last week, traded flat on Monday morning.

Nifty Near ATH, But FII Selling Persists

Sunil Gurjar, SEBI-registered analyst and Founder of Alphamojo Financial Services, said the Nifty continues to hover near its all-time high, despite persistent foreign institutional investor (FII) selling.

“If the Nifty crosses the 26,250 level, a strong bullish rally could emerge. Although the index has gained only around 10% this year, it remains technically strong and trades above key moving averages,” Gurjar said.

Outlook: Flat End to 2025, Muted Start to 2026

With limited economic data, low volumes, holiday sentiment, and strength in commodities, experts expect Indian markets to close 2025 on a flat note and begin 2026 with subdued momentum.