Even with thin trading at the end of the year, India's broader stock indexes showed solid growth in the last week of December 2025.
Market Overview
The BSE Sensex rose 720.56 points, or 0.84%, to finish at 85,762.01. The Nifty 50 added 286.25 points, or 1.09%, closing at 26,328.55.
Sector Performance
- Metals and PSU banks each jumped about 5%.
- Auto, Media, Energy, and Oil & Gas rose roughly 3%.
- FMCG fell 3.7% and IT slipped 0.6%.
Investor Activity
Foreign Institutional Investors (FIIs) were net sellers in the first week of 2026, offloading about ₹13,180 crore of shares. In contrast, Domestic Institutional Investors (DIIs) bought roughly ₹17,767 crore, providing strong local support.
Expert Views
Ashish Chaturmohta (Apex PMS, JM Financial) said the Nifty started the year on a firm footing, reaching new lifetime highs above 26,340. He warned that the rally is still narrow, with about 58% of NSE 500 stocks ending December lower, meaning gains are concentrated in a few large‑cap names.
He added that better corporate earnings, lower GST, a supportive interest‑rate environment, and positive rural demand are helping the market. Any good news on US‑India trade talks could also lift foreign sentiment.
Technical Outlook
Analysts point to key support levels around 26,250–26,100. As long as the index stays above these, the bullish trend may continue, with upside targets near 26,500–26,700. Immediate resistance is seen at 26,410–26,440; a break above could push the market toward 26,520 and then 26,600.
What This Means for Investors
If the Nifty holds above 26,000 and market breadth improves, more stocks could join the rally, making the next leg of the bull market stronger and longer‑lasting.
Remember, this is just perspective, not a prediction. Do your own research or consult a certified advisor before making any investment decisions.