Indian stock indices jumped sharply on Wednesday, the last trading day of 2025, supported largely by value buying amid thin year-end trade volumes.
The Sensex rose 0.64 per cent, or 545 points, to close at 85,220, while the Nifty gained 191 points, or 0.74 per cent, to settle at 26,130.
The domestic stock market opened with marginal gains on Wednesday, reflecting a balanced but subdued investor mood amid thin year-end volumes and limited global cues.
According to analysts, market participants will now closely track developments related to the India–US trade deal, auto sales data, Budget announcements, third-quarter earnings, and other key global indicators.
“The market has the potential for a directional move upwards but is being weighed down by sustained FII selling and the absence of fresh triggers such as positive news on the US–India trade front,” said V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
Vijayakumar said the coming days are expected to be eventful, beginning with December auto sales data, followed by Q3 corporate results, Budget expectations and global developments, including possible US Federal Reserve actions in 2026.
“The Q3 results need to be watched carefully for signs of an earnings uptick. This is significant as there is considerable optimism about a rebound in earnings going forward. Earnings growth will be the single most important factor determining market trends in 2026. FII flows next year will also depend on earnings performance and related expectations,” he added.
Sensex and Nifty cumulatively gained 8–10 per cent in 2025, lower than recent yearly trends.
Market participants remained cautious, with experts pointing to subdued foreign investor participation. Foreign portfolio investors were net sellers in Indian equities in 2025, data showed.
Commenting on Wednesday’s session, Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth-tech firm, said the market reflected a gradual improvement in risk appetite into year-end, driven mainly by short covering and selective buying rather than aggressive fresh positioning.
“Sentiment in the metal space turned positive after the government announced a three-year safeguard duty of around 11–12 per cent on select steel imports to protect domestic producers from cheaper overseas supply. The broad-based rally witnessed today has set the stage for the next directional move in the early part of the new year,” he said.
Vinod Nair, Head of Research at Geojit Investments Limited, said markets ended 2025 on a strong note, posting a broad-based recovery.
“Looking ahead, expectations are building for a constructive rebound in 2026, supported by improving demand conditions. Investor sentiment is likely to hinge on corporate earnings and a potential uptick in nominal GDP growth. Metal stocks led gains today after the government announced import tariffs on steel products, while the oil and gas sector outperformed on expectations of stable demand and stronger refining margins,” Nair noted.
Meanwhile, international silver prices traded sharply lower, declining over 8 per cent at the time of filing this report. Taking cues from global markets, silver on MCX also declined sharply, falling over 5 per cent to Rs 2.37 lakh per kilogram.
“Despite near-term pressure, the longer-term bullish framework remains intact. The broader trend continues to favour accumulation on dips,” Ponmudi R said.
(ANI)
