Indian equity markets closed marginally lower on December 24 in a holiday-thinned, volatile session ahead of Christmas, with subdued volumes reflecting year-end caution. Losses in IT, pharma, and oil & gas sectors offset gains in metals and select large-caps, amid mixed global cues from robust US economic data. Key themes included resilient domestic fundamentals, geopolitical supply risks, and anticipation of policy support in the upcoming budget.
- Benchmarks decline modestly amid low volumes and sector weakness.
- US Q3 GDP revised upward, signaling sustained economic strength.
- Initial jobless claims fall unexpectedly, reinforcing labor resilience.
Indian Benchmarks End Marginally Lower in Holiday-Thinned Trade
The BSE Sensex closed down 116 points at 85,408.70, while the NSE Nifty 50 settled 35 points lower at 26,142.10, marking a cautious end to the session on December 24, 2025. Trading volumes remained muted due to the impending Christmas holiday, with sectoral pressure evident in oil & gas (down 0.76%), IT, and pharma indices amid foreign outflows and global uncertainties. Gains in metals and select heavyweights like Hindalco, Shriram Finance, and Trent provided some support, but overall breadth favored decliners with 2,154 stocks falling against 1,693 advances on the BSE. This mild correction follows recent consolidation, maintaining the indices near elevated levels despite year-end profit booking. For investors, the session underscores resilience in domestic-driven sectors while highlighting vulnerability to IT sector headwinds from potential US policy shifts. Broader implications include sustained upward bias into 2026, supported by expected fiscal stimulus and easing monetary conditions.
Business Standard - https://www.business-standard.com/markets/news/stock-market-live-updates-december-24-nse-bse-sensex-today-nifty-gift-nifty-ipo-india-125122400098_1.html
US Q3 GDP Growth Revised Higher to 4.3%
The US economy expanded at an annualized rate of 4.3% in the third quarter of 2025, surpassing initial estimates and driven primarily by strong consumer spending on goods and services alongside robust investment. This upward revision reflects greater resilience than anticipated, bolstering confidence in a soft landing scenario despite elevated interest rates. The data, released amid holiday trading, contributed to record highs in US indices and influenced global sentiment positively. For Indian markets, stronger US growth could enhance foreign institutional inflows but also raises prospects of delayed Federal Reserve rate cuts, potentially pressuring emerging market currencies and borrowing costs. In the broader context, this performance contrasts with slowing growth in other major economies, reinforcing the dollar's strength and impacting commodity pricing dynamics relevant to India's import-dependent sectors.
CNBC (adapted from related reports) - https://www.cnbc.com/2025/12/24/economy-grows-chip-tariff-delay-new-sp-500-record-and-more-in-morning-squawk.html
S&P 500 Closes at Fresh Record High
The S&P 500 advanced 0.3% to a new all-time closing high in a shortened Christmas Eve session, supported by technology rebound and positive economic indicators including upward GDP revisions. This milestone extends the index's year-end rally, reflecting investor optimism in US corporate earnings and economic momentum heading into 2026. Broader US markets also gained, with the Dow rising modestly amid thin volumes. The record close may encourage cross-border portfolio allocations toward Indian equities through enhanced global risk appetite, though it highlights divergence with domestic indices facing sector-specific drags. Implications for India include potential boost to IT and export-oriented stocks if US demand sustains, while underscoring the influence of Wall Street performance on emerging market flows.
CNBC (adapted) - https://www.cnbc.com/2025/12/23/stock-market-today-live-updates.html
US Weekly Initial Jobless Claims Decline to 214,000
Initial unemployment claims in the US unexpectedly dropped to 214,000 for the week ending December 20, 2025, marking a decline from the prior period and signaling continued labor market tightness. This better-than-expected reading alleviates concerns over softening employment amid high interest rates, supporting narratives of economic resilience. Continuing claims remained elevated but stable, indicating low layoffs despite moderated hiring. The data reinforces expectations for limited Federal Reserve easing in early 2026, potentially sustaining higher US yields and dollar strength. For Indian financial markets, a robust US jobs environment could indirectly support outsourcing demand in IT services while complicating rupee stability and foreign investment dynamics in emerging assets.
Reuters - https://www.reuters.com/world/us/us-weekly-jobless-claims-unexpectedly-fall-2025-12-24/
Crude Oil Prices Settle Marginally Lower Amid Supply Concerns
Brent crude settled down 0.2% at $62.24 per barrel, while WTI closed near $58.35, extending modest losses despite geopolitical risks and strong US growth data. Prices remain on track for the sharpest annual decline since 2020, pressured by expectations of global oversupply in 2026. Inventory builds reported by industry data and reduced shipments from key producers contributed to the downside. Lower crude benefits India's fiscal position by reducing the import bill and easing inflationary pressures, supporting macroeconomic stability and potential RBI policy flexibility. However, it weighs on domestic energy stocks and could signal broader demand concerns in a slowing global environment.
Metals Sector Outperforms as Hindalco and Coal India Lead Gains
Mining and metal stocks shone on December 24, with Hindalco Industries, Coal India, and related names topping Nifty gainers amid broader market dips. Coal India rose notably after board approval for subsidiary listings, boosting sentiment in public sector undertakings. This sector resilience contrasts with weakness in IT and pharma, highlighting rotation toward commodity plays amid stable domestic demand. The outperformance underscores potential in resource-based industries supported by infrastructure push and global recovery cues, offering diversification benefits for portfolios amid volatile equity conditions.
Livemint (adapted) - https://www.livemint.com/market/stock-market-news/top-gainers-losers-on-dec-24-hindustan-copper-hindustan-zinc-bharat-dynamics-trent-castrol-india-among-top-gai-11766570266656.html
IT Sector Under Pressure from US H-1B Visa Reforms
Indian IT stocks faced renewed selling on December 24 following US administration changes to the H-1B visa program, prioritizing higher-skilled and better-paid applicants over the previous lottery system. Major names like Wipro, Infosys, and TCS declined, contributing significantly to index drags. This policy shift raises concerns over hiring costs and flexibility for Indian firms reliant on US talent mobility. Longer-term implications include potential margin compression and strategic shifts toward domestic or alternative markets, amid already subdued global tech spending.
RBI Emphasizes Macro Fundamentals for Sustained Growth
The Reserve Bank of India's December bulletin highlighted the need for continued focus on macroeconomic stability and reforms to navigate global uncertainties, while revising FY26 GDP growth upward to 7.3%. Strong domestic demand and benign inflation outlook underpin resilience, despite trade disruptions. This guidance reinforces expectations for prudent fiscal and monetary policies, supporting investor confidence in India's growth trajectory amid elevated global risks.
The Economic Times - https://economictimes.indiatimes.com/news/economy/indicators/focus-on-fundamentals-to-keep-india-going-rbi-bulletin/articleshow/126128313.cms
India Concludes Key Trade Agreements Amid Global Shifts
India finalized multiple free trade agreements in 2025, including with New Zealand in December, to diversify export markets and mitigate tariff pressures from major economies. These pacts enhance access for agriculture, services, and manufacturing sectors, bolstering trade balances. The developments signal proactive diplomacy supporting long-term corporate strategies in a fragmented global trade landscape.
The Economic Times - https://economictimes.indiatimes.com/news/india/india-incs-2025-reset-from-china-risks-to-long-term-bets/articleshow/126138096.cms
IPO Pipeline Remains Active with New Approvals
SEBI granted approvals for several IPOs in late 2025, maintaining a robust primary market pipeline despite year-end caution. Upcoming issues like E to E Transportation reflect continued investor interest in infrastructure and engineering themes. This activity underscores capital market vibrancy, aiding corporate fundraising and economic expansion through enhanced liquidity.