Stock Market Today: Sensex Trades Near 84,900; Nifty Holds Above 26,000

Indian stock market ends the year on a steady note as Sensex and Nifty hold key levels

The Indian stock market shows steady performance on the final trading day of 2025. Equity benchmarks trade with mild gains as investors adjust positions before the year ends. Market sentiment remains cautious but stable, supported by selective buying in key sectors. Domestic factors provide support while global cues remain mixed.

The National Stock Exchange and Bombay Stock Exchange record higher turnover compared to the previous session, reflecting renewed interest after recent declines. Trading activity increases in metals, banking, and mid-cap stocks, while information technology shares show mild weakness.

Benchmark Indices Performance

The Nifty 50 trades above the 26,000 mark and holds near 26,034 during active hours. The Sensex remains firm near 84,900 and sustains gains throughout the session. Both indices recover key psychological levels after recent pressure from foreign selling.

The broader market performs better than large-cap stocks. Mid-cap and small-cap indices rise at a faster pace, supported by domestic buying and selective accumulation. Market breadth stays positive, with advancing stocks outnumbering declining shares on both exchanges.

Short-Term Trend and Technical Picture

Stock prices move within a narrow range as the session progresses. Traders show restraint due to year-end positioning and limited global triggers. Technical indicators highlight support near 25,850 on Nifty, while resistance appears between 26,000 and 26,100.

Charts reflect indecision but signal stability after several volatile sessions. Buying interest emerges near support levels, which prevents deeper declines. Volumes remain moderate, in line with typical year-end trade patterns.

Metal Stocks Lead the Market

Metal stocks drive market gains after a major policy decision. The central government imposes a three-year import tariff on select steel products to protect domestic manufacturers. This decision lifts sentiment across the metal sector and improves earnings visibility for producers.

Shares of Tata Steel, JSW Steel, Steel Authority of India, and Jindal Steel record strong gains during the session. The Nifty Metal index climbs to multi-year highs, supported by expectations of better pricing power and reduced import competition. Investors view the tariff move as a long-term positive for India’s steel industry.

Banking Sector Shows Strength

Banking stocks support the broader indices during the session. The Nifty Bank index reflects gains after a structural change in its composition. Yes Bank and Union Bank enter the index as part of the latest rebalancing exercise. This change triggers fresh fund flows into these stocks from index-tracking funds.

Some existing bank constituents experience mild selling pressure due to portfolio adjustments. Overall sentiment in the banking space remains positive due to stable asset quality, controlled credit costs, and steady loan growth.

Foreign Investment and Currency Trends

Foreign institutional investors continue to reduce exposure to Indian equities in 2025. The selling pressure from foreign funds continually influences the market's momentum negatively and keeps sharp rallies at bay. December sees a huge outflow of capital from foreign investors, making 2025 one of the years with the least participation of foreign investment in India.

The year turns out to be disastrous for the Indian rupee, which eventually decreases sharply during the year and records its worst annual loss in three years against the US dollar. The outflow of funds from the equity market, along with the global currency strength, is responsible for this depreciation. A weaker rupee adds to the costs of import-dependent sectors but gradually benefits the export-oriented companies.

Market Performance at Year End

Indian equity markets managed to keep modest gains at press time. The Nifty 50 registers a small increment, while the Sensex closes a little higher. Stocks from the metals sector and mid-cap shares are the day's top gainers.

Although the close was positive, performance over the year remains weak. Indian markets found themselves amongst the weakest global performers in 2025. Steady growth in the domestic economy, heavy foreign selling, currency weakness, and global uncertainty kept returns at minimum levels.

Corporate and Stock-Specific Developments

New orders accompanied by positive business updates attract investors to some mid-cap and small-cap stocks. Besides, the engineering and construction companies that have received overseas contracts display strength and sign renewable energy and manufacturing stocks as well. 

Large-cap shares show varied trends, and their price movement is guided by sector rotation. Furthermore, investor preference still goes to firms with sound financial positions and good earnings visibility.

Outlook for the New Year

With the beginning of trading in 2026, focus shifts to earnings of the companies, interest rate signals, and tax policy changes. There are high expectations for inflation to be kept under control and for easier monetary policy to come. The domestic economy's indicators are still encouraging, with consumption and infrastructure spending being the main drivers of long-term growth.

Increased global interest rates, uncertainties concerning conflicts, and the withdrawal of foreign funds are some of the risks that still exist in the market. The stability of the currency and the inflow of capital are two factors that will be pivotal in determining the direction of the market at the beginning of 2026.

Final Thoughts

Even with the challenges, the Indian stock market managed to recover. The main indexes regain important levels, the metals and banks sector leads the gains, and the wider market is better than large caps. 

Policy support and domestic demand are the strong points, while the foreign outflows and the currency pressure are the drawbacks. Sectoral fields finished 2025 on a calm note, allowing for a cautiously optimistic attitude for 2026.