Indian equity markets concluded the holiday-shortened week in positive territory, driven by expectations of stronger domestic demand, supportive liquidity measures, and optimism over potential US Federal Reserve policy easing in 2026, analysts said on Saturday.
The week began with a bullish undertone, although momentum waned in the following days.
On Friday, the Sensex closed at 85,041.45, down 367.25 points or 0.43 per cent, while the Nifty 50 slipped 99.80 points, settling at 26,042.30.
Market observers noted that trading largely remained range-bound due to the year-end lull.
Hopes for a Santa Claus rally diminished amid a lack of fresh catalysts, slow progress in US–India trade discussions, and caution ahead of the upcoming corporate earnings season.
Vinod Nair, Head of Research at Geojit Investments Ltd, said that investors booked profits selectively across most segments, while metals, FMCG, and media stocks remained resilient.
Analysts highlighted that the Nifty 50 continues to respect its long-term rising channel and remains comfortably above the 20-day EMA cluster.
“As long as Nifty sustains above the 26,000–25,900 support zone, the overall bias remains positive,” they added.
RBI liquidity measures, including open market operations and USD/INR buy–sell swaps, helped stabilise the rupee, though persistent foreign institutional investor (FII) outflows continued to weigh on sentiment.
Meanwhile, gold prices rose on safe-haven demand, and crude oil hovered near multi-year lows. Analysts noted that US efforts to restrict Venezuelan oil exports could push crude prices higher in the near term.
Investors are expected to remain cautious, closely monitoring the upcoming earnings season, global developments, and currency movements.
Attention will also turn to next week’s domestic industrial and manufacturing output data, manufacturing PMI, and the US FOMC minutes, said Nair.
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