Indian benchmark indices recorded moderate gains on Wednesday morning, buoyed by positive global cues and expectations of strong domestic performance as 2025 draws to a close.
The Sensex advanced 105 points, or 0.12 per cent, to 85,630, while the Nifty rose 40 points, or 0.16 per cent, to 26,217 at the market open.
Broad-cap indices outshone the benchmarks, with the Nifty Midcap 100 rising 0.31 per cent and the Nifty Smallcap 100 gaining 0.53 per cent.
Among Nifty constituents, Hindalco Industries, Axis Bank, and Cipla emerged as the top gainers, whereas Tech Mahindra, TCS, Titan Company, Dr Reddy’s Labs, and Tata Consumer Products faced losses.
Sectoral indices showed mixed trends. Media, Metal, and Realty sectors led the gains, rising around 0.82 per cent, 0.58 per cent, and 0.78 per cent, respectively, while the Nifty IT index lagged, down 0.49 per cent.
Analysts indicated that Nifty could test resistance levels at 26,202 and 26,330, with 26,000 expected to provide near-term support.
Market Outlook and Domestic Factors
Experts noted that the market is consolidating upward as the calendar year ends.
Strong domestic macroeconomic indicators, coupled with expectations of robust Q3 and Q4 earnings for FY26 and FY27, are likely to support equity markets.
While domestic inflows and DII buying may provide resilience, FIIs may sell on rallies, potentially limiting sharp breakouts.
The recent revival of AI-related trades in the US could shift investor sentiment towards non-AI sectors in India.
Additionally, the Reserve Bank of India’s announcement of an extra Rs 2 lakh crore in Open Market Operations is expected to boost liquidity, lower yields, and positively impact credit growth and banking stocks.
Asia-Pacific markets traded mostly flat with a positive bias. China’s Shanghai index rose 0.24 per cent and Shenzhen by 0.31 per cent, Japan’s Nikkei gained 0.06 per cent, Hong Kong’s Hang Seng added 0.08 per cent, and South Korea’s Kospi climbed 0.12 per cent.
Meanwhile, US markets closed largely in the green, with Nasdaq up 0.57 per cent, S&P 500 up 0.46 per cent, and the Dow rising 0.16 per cent.
On Tuesday, foreign institutional investors sold equities worth Rs 1,795 crore, while domestic institutional investors purchased equities valued at Rs 3,812 crore, providing support to the market.
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