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Mumbai (Maharashtra), December 31:
Indian equity benchmarks opened marginally higher on Wednesday, the last trading session of 2025, as investors remained cautious amid thin year-end volumes and limited global cues.
The Nifty 50 opened at 26,018.45, gaining 79.60 points or 0.31 per cent. Meanwhile, the BSE Sensex began the session at 84,908.44, up 233.36 points or 0.28 per cent.
Investor Caution Persists Despite Positive Start
Despite the positive opening, market sentiment stayed muted. Experts pointed to weak December performance and subdued foreign investor participation as key concerns.
Market expert Ajay Bagga said Indian markets witnessed an uninspiring December series. He noted that foreign portfolio investor (FPI) positioning at just 9 per cent longs continues to act as a hurdle for a sustained recovery.
He added that investors will closely track Q3 earnings, the Union Budget 2026, and potential trade agreements with the EU and the US. According to him, the shift from valuation concerns in 2025 to earnings validation in 2026 will be critical for market direction.
Broader Markets Trade in Green
Meanwhile, broader markets showed modest strength. All major indices on the National Stock Exchange opened higher.
The Nifty 100 rose 0.28 per cent, the Nifty Smallcap 100 gained 0.51 per cent, and the Nifty Midcap 100 advanced 0.49 per cent, indicating selective buying across segments.
Sectoral Performance
Sector-wise, all major indices traded in positive territory. Nifty Metal surged over 1 per cent following the extension of steel import curbs for three years.
Nifty IT gained 0.2 per cent, FMCG rose 0.24 per cent, while Nifty PSU Bank edged up 0.07 per cent.
Additionally, Nifty Realty advanced 0.47 per cent, and Nifty Pharma climbed 0.21 per cent.
Thin Liquidity Caps Upside
Commenting on market conditions, Ponmudi R, CEO of Enrich Money, said markets are likely to end 2025 on a subdued note. He cited extremely thin year-end liquidity, global holiday closures, and continued foreign investor caution as limiting factors.
He added that, in the absence of fresh domestic triggers, markets may remain range-bound, with stock-specific activity driven mainly by year-end portfolio adjustments.
Fund Flow and Global Cues
On the fund flow front, data showed FPIs were net sellers worth ₹3,844 crore, while domestic institutional investors (DIIs) supported the market with net purchases of ₹6,159.8 crore.
Globally, US equities declined for a third straight session as technology stocks underperformed. Asian markets remained mostly weak, though Japan ended the year at a lifetime high. Markets in Japan and South Korea remained shut on Wednesday due to New Year’s Eve, while Hong Kong closed early.
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