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
