The Indian benchmark indices recorded a marginal decline at the end of the second trading session of the year as Sensex declined nearly 30 points testing 85,200 and Nifty declined over 10 points to close trade above 26,100.
In the 30-share BSE Sensex, the top gainers included stocks such as NTPC, Eternal, L&T, PowerGrid and Mahindra and Mahindra. Meanwhile, the laggards included stocks like TMPV, HDFC Bank, Bajaj Finserv, Titan and ICICI Bank.
In the previous trading session, the BSE Sensex rang the first opening bell of the new year above 85,370, climbing more than 150 points, while the NSE Nifty50 started the day near 26,200, jumping a little over 50 points, as of 9:15 AM.
Weak Global Cues
Global cues remained muted as several major international markets across Asia, Europe and the United States stayed closed for the New Year holiday. With overseas participation limited, early liquidity in domestic markets was subdued. US equities had ended lower in the previous session, while most Asian markets remained shut on Thursday.
Against this backdrop, Indian equity markets entered the first trading session of 2026 with a cautiously positive bias, supported largely by domestic investors rather than global triggers.
“With the US, Europe and several Asian markets shut, global cues are limited and early liquidity is expected to remain thin. As the session progresses, domestic participation is likely to improve, supported by steady DII inflows and the renewed optimism that typically accompanies the start of a new calendar year,” said Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm.
Institutional Activity Remains Mixed
On the institutional front, Foreign Institutional Investors (FIIs) continued to trim exposure, selling equities worth Rs 3,597.38 crore on Wednesday, according to exchange data. Domestic Institutional Investors (DIIs), however, remained firm buyers, purchasing shares worth Rs 6,759.64 crore, providing support to the market.
Oil Prices Ease
In the commodities space, Brent crude, the global oil benchmark, declined 0.78 per cent to $60.85 per barrel, offering some relief on the inflation outlook.
2025 In Review: Benchmarks Log Solid Gains
Indian equity benchmarks ended calendar year 2025 with healthy gains. The Sensex advanced 7,081.59 points, or 9 per cent, while the Nifty rose 2,484.80 points, or 10.50 per cent during the year.
The market capitalisation of BSE-listed companies increased by Rs 33.84 lakh crore in 2025 to Rs 4,75,79,238.11 crore ($5.29 trillion).
Broader Market Shows Divergence
Performance across broader indices remained uneven. The BSE midcap index gained 509.68 points, or 1.09 per cent, over the year, while the smallcap index declined 3,655.14 points, or 6.62 per cent.
Analysts said Indian equities closed 2025 on a constructive note, though without signs of aggressive risk-taking.
“The session reflected a gradual improvement in risk appetite into year-end, driven largely by short covering and selective buying rather than strong fresh positioning,” said Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm.
