The markets closed almost flat on Tuesday, with BSE Sensex slipping 20 points to close at 84,675, while the NSE Nifty 50 ending marginally lower at 25,938, staying below the 25,950 mark. Thin volumes and profit-booking marked the session, typical of year-end trade.
Market sentiment remained muted through the day as participants avoided taking fresh positions ahead of the new calendar year. Persistent selling by foreign institutional investors (FIIs) also weighed on benchmarks, even as domestic investors provided some support at lower levels.
Sectoral performance was mixed. Auto and select financial stocks showed resilience, helping limit losses in the headline indices. Mahindra & Mahindra gained around 2 per cent, emerging as one of the top Sensex gainers, supported by positive outlook on demand and margins. Bajaj Finserv also advanced, outperforming the broader market despite weak overall sentiment.
On the downside, IT and cement stocks faced selling pressure. Infosys and HCL Technologies declined, tracking weakness in global technology stocks and cautious guidance expectations. UltraTech Cement also ended lower, adding to the drag on the Sensex. Losses in these heavyweights offset gains seen in autos and select financials.
The broader market reflected similar caution. Mid-cap and small-cap indices closed marginally lower, indicating a lack of strong risk appetite. Traders largely stayed on the sidelines, with many opting to lock in gains after a strong performance in earlier parts of the year.
Global cues offered limited direction. Asian markets were largely flat, while US futures traded mixed, providing no clear trigger for Indian equities. European markets also remained subdued during Indian trading hours.
Meanwhile, stock-specific activity remained in focus due to quarterly Nifty index rebalancing, which led to adjustments in select stocks. In the debt market, a few corporate bond issuances were reported, though overall activity was muted.
Market experts said Indian equities may remain range-bound in the near term, with investors awaiting fresh triggers such as corporate earnings, macroeconomic data and global policy signals in early 2026.
Also Read: Sensex drops 346 points, Nifty 25,942