Sensex, Nifty Today: Stock Market eyes flat start on last trading day of 2025 amid weak global cues

Sensex, Nifty Today: Indian equity benchmarks are likely to open on a cautious note on the final trading day of 2025, tracking weak global cues, US Federal Reserve signals, and continued primary market activity.

GIFT Nifty today

At 8:15 am, GIFT Nifty futures were trading flat at 26,124.5, up 21.5 points or 0.08 per cent, indicating a mildly positive start for domestic markets.

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On Tuesday, markets ended marginally lower. The BSE Sensex closed at 84,675.08, down 20.46 points or 0.02 per cent. The NSE Nifty50 settled at 25,938.85, slipping 3.25 points or 0.01 per cent.

Nifty shows technical weakness

The Nifty extended its weakness for the fourth straight session and touched an intraday one-week low of 25,878. The index has formed a lower low and lower high pattern for three consecutive days, indicating near-term pressure.

However, Nifty has not closed below its 50-day moving average since 30 September. The 50 DMA is placed near 25,930, acting as a key support level.

Bank Nifty volatile but holds range

Bank Nifty saw sharp intraday swings. The index slipped to a seven-day low of 58,737 before recovering, snapping a four-day losing streak.

Technically, Bank Nifty formed a higher high and lower low, signalling rising volatility. After slipping below 58,600 during the session, it managed to close within its 31-day range of 58,800 to 59,800.

The index has held the 58,650–58,800 zone since 17 November, with 58,800 acting as a strong intraday support.

FII selling persists; domestic funds stay strong

Foreign institutional investors reduced their index futures long positions to 8.8 per cent from 13.65 per cent. FIIs were net sellers in the cash market for the sixth straight day, selling shares worth Rs 3,844 crore.

Across cash, index futures and stock futures, FIIs recorded a marginal net selling of Rs 13 crore for the third consecutive session. For the month, FIIs have sold equities worth Rs 30,752 crore, the highest since September.

In contrast, domestic institutional investors continued their strong buying streak. Domestic funds bought shares worth Rs 6,160 crore, marking their 86th consecutive day of net buying and the biggest single-day purchase since 9 December. Market data also reflected adjustments linked to monthly expiry and rollovers.

Broader markets under pressure

The Nifty Midcap Select index declined for the fifth straight session and formed a lower low and lower high pattern for the fourth day. It closed at 13,601, below its 50 DMA of 13,704, and at a seven-day low.

The smallcap index also remained weak for the third consecutive day, forming a lower low and lower high for the second session in a row.

In contrast, the metal index continued to outperform and hit a fresh lifetime high, supported by strong global metal prices.

Asian markets

Global cues remained weak. Asia-Pacific markets slipped on the holiday-shortened final trading day. Australia’s S&P/ASX 200 fell 0.17 per cent, Hong Kong’s Hang Seng declined 0.42 per cent, while China’s CSI 300 was flat. Japan and South Korea remained closed.

US Dow, S&P fell

US equity futures were flat in early Asian trade. Overnight, Wall Street ended lower for the third straight session. The S&P 500 fell 0.14 per cent, the Nasdaq Composite lost 0.24 per cent, and the Dow Jones eased 0.20 per cent, dragged by continued weakness in technology stocks such as Nvidia and Palantir Technologies.

The dollar index hovered near 98, close to a one-week high.

Commodities remained firm. Silver jumped sharply, posting its biggest single-day rise and trading just Rs 3,162 below its lifetime high of Rs 254,174. Gold was also close to its record level, just Rs 3,715 below its life high of Rs 140,465.

Copper hit a fresh lifetime high for the sixth straight day. Aluminium rose to its highest level since April 2022, while nickel touched a 14-month high and lead climbed to a six-week peak.

Fed minutes in focus

Minutes from the US Federal Reserve’s December meeting showed most FOMC members believe rate cuts may be appropriate next year if inflation continues to cool. However, policymakers remain divided between concerns of persistent inflation and a weakening labour market.

Some members warned that inflation could become entrenched, requiring higher rates, while others supported deeper cuts to cushion economic slowdown.

The Fed cut the federal funds rate by 25 basis points to a range of 3.5 per cent to 3.75 per cent, marking its third rate cut of the year. The decision saw two members dissent in favour of a pause, while new Governor Miran voted for a larger 50 basis point cut.