No Santa Rally as Nifty, Sensex Open Lower on Friday | Stock Market Opens Weak

Market Performance: Dalal Street Starts Friday on a Soft Note

The Indian stock market began Friday on a subdued note, underscoring the lack of a Santa rally this year, as weak momentum and cautious investor activity kept early trading muted.

At the opening bell:

• Nifty 50 started at 26,121.25, down 20.85 points or 0.08%
• BSE Sensex opened at 85,225.28, slipping 183.42 points or 0.21%

The mood was muted from the start, with no strong buying interest visible across frontline indices.

Main News: No Santa Rally Amid Weak Momentum and Year-End Caution

The lack of festive cheer in the markets comes as foreign fund outflows continue and year-end trading volumes remain thin. December has traditionally seen some optimism, but this time, that seasonal strength is missing.

The broader market tone reflects:

• Continued selling pressure from foreign investors
• Low conviction trades due to the year-end phase
• Limited triggers in the immediate term

With liquidity remaining light, even small sell orders have had an outsized impact on index movement.

Fund Flow Snapshot: Domestic Support Offsets Foreign Selling

Fund flow data from December 24 highlights a clear divergence between foreign and domestic investors.

Key figures:

• Foreign portfolio investors (FPIs) sold shares worth ₹1,721.3 crore
• Domestic institutional investors (DIIs) bought shares worth ₹2,381.3 crore

While domestic flows provided some cushion, they were not strong enough to reverse the weak opening trend.

Broader Market: Mixed but Largely in the Red

The broader market opened with a negative bias, though losses were largely contained.

Index-wise movement:

• Nifty Smallcap 1000: up 0.17% (only gainer)
• Nifty 100: down 0.06%
• Nifty Midcap 100: down 0.04%

The limited gains in smallcaps stood out, but overall participation remained selective.

Sector Watch: Few Bright Spots, Most Indices Flat to Weak

Sectoral trends showed mild divergence, with defensive pockets showing some resilience.

Opening trends:

• Positive: Nifty Media, Nifty Metal, Nifty Pharma
• Negative: Nifty IT (down 0.14%)
• Flat to weak: FMCG, Auto, PSU Bank indices

No sector showed decisive leadership, reinforcing the broader lack of momentum.

Market Context: How Indian Equities Are Closing the Year?

Despite the sluggish start to Friday, Indian equities have shown relative stability in the fourth quarter of CY2025.

Key context:

• Indian markets have broadly tracked emerging and developed markets
• This has held true even amid a sharp depreciation of the rupee in December
• However, optimism has yet to translate into near-term buying strength

As the year winds down, markets appear to be consolidating rather than making directional moves.

Summary: Santa Rally Missing, Caution Takes Centre Stage

• No Santa rally as Nifty and Sensex opened lower on Friday
• Benchmarks slipped modestly amid weak volumes and cautious sentiment
• FPIs remained net sellers, while DIIs offered support
• Broader markets stayed mixed, with limited sector leadership
• Year-end caution continues to shape trading behavior

For now, the stock market is closing the year quietly, with hope intact but momentum clearly subdued.

Source: Livemint