Published on: 26 Dec, 2025 08:30

Markets return post-holiday with a muted, cautious start on December 26, 2025, amid thin volumes, FII outflows, and mixed global cues.

Key Themes & Picks

  • GIFT Nifty signals a flat-to-negative open with low holiday volumes.

  • Renewables and infrastructure lead on strong execution momentum.

  • Railway stocks in focus amid fare hike speculation.

  • Key picks: Lloyds Metals, Olectra Greentech, and Gravita India.

  • Calm volatility index contrasts with persistent FII selling pressure.

As Indian markets reopen post-Christmas on December 26, 2025, the pre-market sentiment remains cautious amid thin holiday volumes and mixed global cues. The GIFT Nifty futures hovered around 26,131, signaling a flat to mildly negative opening for the Nifty 50, down about 0.16% from the previous close of 26,177. US markets were closed for the holiday, while Asian peers showed modest gains: Japan's Nikkei up 0.9%, South Korea's Kospi up 0.6%, with China and Hong Kong mixed. Overnight, the S&P 500 hit record highs in a Santa Rally, but concerns over AWS outages and China's rare-earth curbs linger. Domestically, FIIs sold ₹1,721 crore in cash markets on December 24, offset by DII buying of ₹2,381 crore.

Top themes today include renewables and infrastructure leading with execution momentum, railway stocks buzzing on fare hike rumors, and banking under scrutiny amid probes. We found around 35 unique recommendations from today's updates across brokerages and news portals. Standout calls: Bajaj Broking's Buy on Lloyds Metals and Energy with strong upside; Sumeet Bagadia's breakout picks like Olectra Greentech; and Raja Venkatraman's top buys including Gravita India. Overall sentiment leans neutral, with India VIX at ~12% indicating calm but low energy.

Section 1: Index Outlook

Major indices are expected to open muted, with Nifty consolidating in a 26,000-26,300 range amid holiday-thinned trade. Analysts see immediate support at 26,100 and resistance at 26,300, with a breakout above 26,300 potentially targeting 26,500-26,800. Bank Nifty shows consolidation around 53,500-54,000, reflecting caution in financials. Broader outlook remains positive, with Kotak Securities projecting Nifty at 29,120 by end-2026 on 20x PE for FY28 EPS. Goldman Sachs maintains an overweight stance, targeting 29,000 by end-2026 driven by earnings upgrades.

Index Recommendation Target/Range Key Driver Source
Nifty 50 Neutral/Hold 26,000-26,300 Thin volumes, global cues; support at 26,100 Bajaj Broking / Livemint
Sensex Neutral 85,000-86,000 Holiday caution, FII flows Moneycontrol / ET
Bank Nifty Consolidate 53,500-54,000 Banking probe impacts; steady rates Upstox / X Analysis

Section 2: Sector-Wise Stock Picks

Banking & Financials

Banking remains in focus amid regulatory probes, but select picks show resilience. Raja Venkatraman recommends PNB Housing Finance as a top buy.

  • PNB Housing Finance (PNBHOUSING.NS) – Buy, Target: ₹1,100 (14% upside), Rationale: Bullish short-term outlook post 3.6% rise; strong support at ₹900. Source: Hindu Business Line / Livemint.
  • Kotak Mahindra Bank (KOTAKBANK.NS) – Buy, Target: ₹1,900 (10% upside), Rationale: Stable amid sector caution; positive earnings momentum. Source: Bajaj Broking.
  • IndusInd Bank (INDUSINDBK.NS) – Hold, Target: ₹1,200 (5% upside), Rationale: SFIO probe adds pressure, but cooperating; watch for resolution. Source: Upstox / X.
  • Jio Financial (JIOFIN.NS) – Buy, Target: ₹400 (16% upside), Rationale: Strong ecosystem; potential rally in fintech. Source: ET Markets.

IT & Tech

IT shows rebound potential; global cues supportive.

  • Coforge (COFORGE.NS) – Buy, Target: ₹8,500 (12% upside), Rationale: Positive deal wins; sector strength. Source: Upstox.
  • Zensar Tech (ZENSARTECH.NS) – Buy, Target: ₹1,000 (35% upside), Rationale: Breakout above trendline; growth in digital services. Source: ET (updated view).

Pharma & Healthcare

Steady regulatory outcomes; Ambuja Cement crossover noted.

  • Laurus Labs (LAURUSLABS.NS) – Buy, Target: ₹550 (15% upside), Rationale: Strong pipeline; export growth. Source: Livemint.
  • Ambuja Cement (AMBUJACEM.NS) – Buy, Target: ₹700 (10% upside), Rationale: Infrastructure demand; broker picks. Source: Times of India.
  • Strides Pharma (STAR.NS) – Hold, Target: ₹1,200 (8% upside), Rationale: US market focus; recall watch. Source: Moneycontrol.
  • Sun Pharma (SUNPHARMA.NS) – Hold, Target: ₹1,800 (5% upside), Rationale: US recall of 17k units; monitor FDA. Source: X.

Renewables & Energy

Leading with orders; NTPC in spotlight.

  • NTPC Green (NTPCGREEN.NS) – Buy, Target: ₹250 (20% upside), Rationale: Breakout; green energy push. Source: Livemint.
  • Olectra Greentech (OLECTRA.NS) – Buy, Target: ₹1,800 (18% upside), Rationale: EV incentives; PLI boost. Source: Livemint / X.
  • Vikran Engineering (VIKRAN.NS) – Buy, Target: ₹500 (15% upside), Rationale: ₹459 cr NTPC solar order. Source: Moneycontrol / X.
  • Castrol India (CASTROLIND.NS) – Buy, Target: ₹220 (13% upside), Rationale: Open offer at ₹194; BP deal. Source: Business Standard / X.

Infrastructure & Industrials

Infra momentum strong; railway fare hike buzz.

  • KNR Constructions (KNRCON.NS) – Buy, Target: ₹350 (12% upside), Rationale: Order pipeline; road projects. Source: Upstox / Moneycontrol.
  • IRFC (IRFC.NS) – Buy, Target: ₹200 (15% upside), Rationale: Fare hike; railway capex. Source: X.
  • Dalmia Bharat (DALBHARAT.NS) – Buy, Target: ₹2,000 (14% upside), Rationale: Cement demand; breakout. Source: Livemint.
  • Dilip Buildcon (DBL.NS) – Hold, Target: ₹550 (8% upside), Rationale: ₹360 cr project completion. Source: X.

Metals & Mining

Silver rally boosts; breakout picks.

  • Lloyds Metals and Energy (LLOYDSME.NS) – Buy, Target: ₹1,200 (20% upside), Rationale: Mining growth; strong earnings. Source: Bajaj Broking.
  • Hindustan Zinc (HINDZINC.NS) – Buy, Target: ₹600 (18% upside), Rationale: Silver at $80; commodity rally. Source: Upstox / X.
  • GMDC (GMDCLTD.NS) – Buy, Target: ₹450 (16% upside), Rationale: Mining capex; breakout. Source: Livemint.

Others (Auto, Logistics, etc.)

  • Ola Electric (OLA.NS) – Buy, Target: ₹120 (15% upside), Rationale: ₹367 cr PLI sanction; EV push. Source: Business Standard / X.
  • IndiGo (INDIGO.NS) – Hold, Target: ₹4,500 (8% upside), Rationale: Ops stabilized; new airlines approved. Source: Business Standard.
  • Lenskart (LENSKART.NS) – Buy, Target: ₹1,000 (12% upside), Rationale: ₹350 cr QIP; acquisition in Korea. Source: Moneycontrol / X.

Section 3: Global & Thematic Insights

Global brokerages remain bullish on India for 2026. Morgan Stanley highlights demographics and policy shifts for world-leading growth, with low beta to global equities (0.4) and stable volatility. Goldman Sachs forecasts MSCI India earnings at 13% in 2025, overweight stance amid capex slowdown but strong domestic bid. Jefferies sees breakout IPO year in 2025, focusing on renewables, EVs, defense. Macquarie notes value in midcaps; thematic plays in AI and infrastructure. BSE announcements include analyst meets for Urban Company on Dec 30, tying into thematic urban growth. Regulatory nuggets: NSE holiday list for 2026 released; focus on IPO record potential.

Conclusion & Disclaimer

Overall sentiment is neutral to bullish, with consolidation expected short-term but positive 2026 outlook on earnings upgrades. Investors should watch renewables (NTPC Green, Vikran) and railways (IRFC) for momentum. This is a pre-market snapshot – updates may evolve post-open.

This is aggregated data for informational purposes; consult a financial advisor. Not investment advice.

Sources & Citations

  1. Times of India: https://timesofindia.indiatimes.com/business/india-business/top-stock-recommendations-for-december-26-2025-llyoyds-metals-and-energy-kotak-mahindra-bank-stocks-to-buy-today/articleshow/126176011.cms
  2. Livemint: https://www.livemint.com/market/stock-market-news/breakout-stocks-to-buy-or-sell-sumeet-bagadia-recommends-five-shares-to-buy-today-26-december-2025-11766710320530.html
  3. Upstox: https://upstox.com/news/market-news/stocks/stocks-to-watch-december-26-indus-ind-bank-coforge-railway-stocks-bel-astra-microwave-knr-constructions-hindustan-zinc/article-186767/
  4. Business Standard: https://www.business-standard.com/markets/news/stocks-to-watch-today-indigo-ola-electric-tata-steel-ntpc-castrol-india-lenskart-vodafone-idea-125122600058_1.html
  5. Hindu Business Line: https://www.thehindubusinessline.com/markets/stock-market-live-updates-december-26-2025/article70436649.ece
  6. Moneycontrol: https://www.moneycontrol.com/news/business/markets/stocks-to-watch-today-lenskart-knr-constructions-ola-electric-vikran-engg-strides-pharma-panacea-biotec-castrol-supreme-industries-jk-cement-in-focus-on-26-december-13742576.html
  7. Free Press Journal: https://www.freepressjournal.in/business/market-outlook-top-5-stocks-in-focus-for-december-26-2025
  8. ET Markets: https://m.economictimes.com/markets/stocks/news/stocks-to-buy-on-friday-jio-financial-apl-apollo-3-more-scrips-offer-up-to-16-upside/christmas-picks/slideshow/126172400.cms
  9. Hindu Business Line Video: https://www.thehindubusinessline.com/multimedia/video/todays-stock-recommendation-december-26-2025/article70437030.ece
  10. Times of India: https://timesofindia.indiatimes.com/business/india-business/physicswallah-ambuja-cement-more-stock-recommendations-by-brokers-for-dec-26-check-details/articleshow/126181365.cms And additional from X posts [post:39-67] and global sites [web:71-91].



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