The Indian markets exhibited subdued sentiment on December 26, 2025, characterized by thin year-end trading volumes and minor declines in major indices amid a lack of significant triggers. Global cues from a resilient US economy provided some support but did not spur strong momentum.

• Markets slipped on low volumes, signaling year-end caution and liquidity crunch.
• Precious metals rallied to records, boosting investor interest in safe-haven assets.
• Major IT acquisition highlighted sector consolidation and growth potential.
• Banking fraud disclosure raised concerns over financial sector integrity.
• Strong SIP inflows reflected sustained retail investor confidence.

Markets return post-holiday with a muted, cautious start on December 26, 2025, amid thin volumes, FII outflows, and mixed global cues.

Key Themes & Picks

• GIFT Nifty signals a flat-to-negative open with low holiday volumes.

• Renewables and infrastructure lead on strong execution momentum.

• Railway stocks in focus amid fare hike speculation.

• Key picks: Lloyds Metals, Olectra Greentech, and Gravita India.

• Calm volatility index contrasts with persistent FII selling pressure.

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.