The markets opened for the final trading session of 2025 on a cautious but steady note, with the Sensex and Nifty 50 ending near flat after recovering from early losses. The benchmarks managed to snap a four-day losing streak, supported by selective buying in metal, PSU banking, and energy stocks, even as foreign fund outflows continued to cap gains.
Markets opened marginally higher, tracking positive cues from GIFT Nifty, but volatility persisted through the session as investors engaged in year-end portfolio adjustments. Buying interest was seen in metal stocks on hopes of stable global demand, while PSU banks gained on expectations of improved balance sheets and steady credit growth. FMCG and IT stocks, however, traded mixed, reflecting concerns over valuations and global growth uncertainty.
Broader markets showed mild strength, with midcap and smallcap stocks outperforming the frontline indices. Several individual stocks witnessed sharp moves on company-specific developments, indicating active participation despite thin year-end volumes.
On the commodities front, gold and silver, which delivered strong returns in 2025, saw some profit booking in the final session of the year. Crude oil prices remained range-bound, offering limited direction to energy stocks.
Market sentiment was also influenced by macro signals, including the Reserve Bank of India’s assessment pointing to improved asset quality and profitability in the banking sector. Analysts remain cautiously optimistic about 2026, citing expectations of stable earnings growth, policy support, and lower inflation, while flagging risks from global slowdown and continued FII selling.
Overall, the last trading day of 2025 reflects a market balancing caution with selective optimism as investors look ahead to key triggers in the new year.
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