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.

Indian equity markets closed marginally lower on December 24 in a holiday-thinned, volatile session ahead of Christmas, with subdued volumes reflecting year-end caution. Losses in IT, pharma, and oil & gas sectors offset gains in metals and select large-caps, amid mixed global cues from robust US economic data. Key themes included resilient domestic fundamentals, geopolitical supply risks, and anticipation of policy support in the upcoming budget.

  • Benchmarks decline modestly amid low volumes and sector weakness.
  • US Q3 GDP revised upward, signaling sustained economic strength.
  • Initial jobless claims fall unexpectedly, reinforcing labor resilience.

As Indian markets approach the year-end on December 24, 2025, trading volumes remain thin amid holiday sentiments and foreign outflows, setting the stage for a muted yet potentially positive open. Overnight global cues are mixed, with US futures showing modest gains following a rebound in technology stocks, while Asian markets advance cautiously. The Gift Nifty futures are trading around 26,230-26,255, signaling a flat-to-positive start for the Nifty 50, potentially opening 20-50 points higher than yesterday's close of 26,177. Expected volatility is low due to the upcoming Christmas holiday, with focus on sectors like auto and consumer goods amid corporate developments.