Mumbai: Indian equities ended marginally lower on Wednesday, December 24, 2025, as holiday-thinned volumes kept benchmark indices range-bound and limited follow-through on global risk-on cues. The BSE Sensex slipped 116 points to close at 85,408.70, while the NSE Nifty 50 eased 35 points to finish at 26,142.10—a soft end to a session that began with mild optimism but faded through the afternoon. [1]
With domestic markets shut on Thursday (December 25) for Christmas, many traders chose to reduce risk rather than chase year-end momentum—leaving stock-specific news, institutional flows, and a fresh set of RBI liquidity measures as the day’s defining drivers. [2]
Market at a glance: benchmarks quiet, broader market mixed
Even as the headline indices barely moved, the “under-the-surface” picture looked more uneven:
- Nifty 50: 26,142.10, down 0.13%
- Sensex: 85,408.70, down 0.14%
- Bank Nifty: ended near 59,184, down about 0.20% (pressure in frontline financials) [3]
- Broader market: small-caps held up better than mid-caps; Reuters noted small-caps rose while mid-caps fell on the day [4]
In the absence of a major domestic trigger, investors largely tracked global cues—especially strong U.S. growth data—while keeping an eye on crude oil, the rupee, and persistent foreign selling. [5]
Why the market drifted lower: holiday volumes + FII selling + IT weakness
1) Foreign flows: FIIs sold again, DIIs cushioned the fall
A key reason the market struggled to hold early gains was the continued push-and-pull between foreign and domestic institutional investors.
Provisional exchange data compiled by Moneycontrol showed:
- FIIs/FPIs net sold ₹1,721 crore on December 24
- DIIs net bought ₹2,381 crore the same day [6]
That divergence mattered: domestic buying helped prevent a deeper cut, but the presence of foreign supply kept the indices capped around resistance levels.
2) IT stocks dragged after a U.S. visa-rule change
Information Technology stocks were among the most visible drags. Reuters reported IT names fell after the U.S. Department of Homeland Security amended H‑1B regulations, shifting the selection process to prioritize higher-skilled and higher-paid workers rather than the lottery-based approach. [7]
In a market already short on liquidity due to the holiday week, that sector-specific negative cue was enough to pull the benchmarks slightly into the red.
3) Oil stayed in focus as supply headlines added noise
While global sentiment was supported by stronger U.S. growth, oil remained a source of caution. Moneycontrol highlighted oil’s recent rise and linked the move to geopolitical supply concerns—an overhang that tends to pressure oil-sensitive pockets such as OMCs, aviation, paints, and logistics. [8]
Rupee, bonds, and RBI: liquidity steps take centre stage
Markets also digested a notable RBI-driven shift in currency and rates dynamics.
Reuters reported the rupee closed modestly weaker at ₹89.7850 per U.S. dollar, while dollar/rupee forward premiums retreated sharply after the RBI announced a 3‑year $10 billion FX swap (USD/INR buy-sell swap) to be conducted next month. [9]
Importantly for equities—especially banks—Reuters said the swap forms part of steps to inject $32 billion of liquidityinto the banking system over the next month, a combination traders expect will keep downward pressure on yields. India’s 10-year bond yield fell to 6.55% on the day, according to Reuters. [10]
Why equity investors care:
- Easier liquidity and softer yields can support credit growth narratives and improve sentiment toward banking and rate-sensitive stocks (though the Bank Nifty still ended slightly lower in this session). [11]
Sectors & stock leaders: what rose, what fell on 24.12.2025
Key drags
Across the day’s tape, pressure clustered in familiar pockets for a holiday session: IT, oil & gas, and pharma were repeatedly cited as drags by market trackers and live market coverage. [12]
Pockets of resilience
Even on a soft day, select themes drew buyers—particularly where deal news, orders, or “value unlocking” narratives emerged. [13]
Stocks in focus: deals, orders, and corporate headlines that moved prices
Holiday sessions often belong to company-specific moves, and December 24 was no exception. Here are the headlines that stood out across market coverage:
- Vikran Engineering jumped after winning an order worth ₹20.35 billion for development of 600 MW solar power projects in Maharashtra, Reuters reported. [14]
- Ajanta Pharma gained after a pact with Biocon for marketing the weight-loss drug semaglutide, according to Reuters. [15]
- Kajaria Ceramics extended losses after reporting a fraud of ₹200 million at a unit, Reuters said. [16]
- Coal India drew attention after board approval to list its wholly owned subsidiary South Eastern Coalfields Limited, according to Moneycontrol’s market wrap commentary. [17]
- Castrol India entered the spotlight after Reuters reported Stonepeak and CPPIB would launch an open offer to buy up to 26% of shares at ₹194.04 per share, following their deal involving parent BP. [18]
- On the benchmark pack, Trent, Maruti, and UltraTech Cement were among gainers, while stocks such as IndiGo, Sun Pharma, Asian Paints, and Reliance Industries featured among laggards in end-of-day market lists. [19]
Technical view: Nifty’s 26,000 support becomes the line in the sand
With the market pausing after recent gains, technical commentators focused less on “direction” and more on key levels.
Moneycontrol’s technical coverage noted:
- Nifty struggled to hold above 26,200 and closed near 26,142 after an intraday high above 26,200.
- As long as 26,000 holds (aligned with short-term moving averages and Bollinger Band midline), analysts see scope for a move toward 26,325–26,500 if Nifty clears 26,200 decisively.
- Monthly options positioning was cited as implying a resistance band of 26,200–26,500 with key support around 26,000.
- India VIX hit a new closing low, reinforcing the “low-volatility consolidation” narrative. [20]
For Bank Nifty, a market commentator quoted in Moneycontrol highlighted a base near 58,800 and resistance near 59,550, implying that a breakout from this range could set the next directional move. [21]
Outlook & forecasts: “consolidation with an upward bias” vs. headline long-term targets
Market voices on December 24 broadly leaned toward a year-end consolidation call—especially given the shortened week and muted volumes. The Times of India quoted Geojit’s Dr. V.K. Vijayakumar describing a “consolidation phase with an upward bias”, supported by domestic macros and earnings expectations, while also cautioning that foreign investors could sell into rallies. [22]
Meanwhile, longer-horizon forecasts also made news. A report attributed to ICICI Direct suggested the Nifty 50 could scale 30,000 in calendar year 2026, pointing to a bullish technical framework and historical post-correction behavior (including an argument built around a cup-and-handle pattern and prior 12–18 month moves after sizable corrections). [23]
As always, readers should treat technical targets as scenarios—not certainties—especially with global rates, commodity volatility, and geopolitics still capable of reshaping risk appetite quickly.
What to watch when markets reopen after Christmas
With Indian markets closed on December 25, attention shifts to the next session and the early set of 2026 narrative-builders. Based on what drove price action on December 24, the key monitor list looks like this:
- Institutional flows: whether FIIs continue selling and whether DIIs keep absorbing supply [24]
- RBI liquidity operations: follow-through from the FX swap announcement and its knock-on effects on yields and banks [25]
- Rupee + crude oil: any fresh spikes that alter inflation expectations or sector leadership [26]
- Near-term market triggers: traders are watching for developments around a potential India–U.S. trade deal and the start of October–December earnings for clearer direction [27]
- Technical levels: Nifty’s 26,000 support and the 26,200 hurdle remain the immediate battleground [28]
Bottom line
On 24.12.2025, Dalal Street didn’t so much “turn bearish” as pause—caught between supportive global cues and domestic liquidity optimism on one side, and thin holiday volumes, FII selling, and IT-sector worries on the other. If 26,000 holds and participation returns post-holiday, traders will be watching whether the market can convert this quiet consolidation into a renewed year-end push—or whether it stays capped until earnings season provides the next decisive catalyst. [29]
References
1. www.reuters.com, 2. www.reuters.com, 3. www.financialexpress.com, 4. www.reuters.com, 5. www.reuters.com, 6. www.moneycontrol.com, 7. www.reuters.com, 8. www.moneycontrol.com, 9. www.reuters.com, 10. www.reuters.com, 11. www.reuters.com, 12. www.reuters.com, 13. www.moneycontrol.com, 14. www.reuters.com, 15. www.reuters.com, 16. www.reuters.com, 17. www.moneycontrol.com, 18. www.reuters.com, 19. www.business-standard.com, 20. www.moneycontrol.com, 21. www.moneycontrol.com, 22. timesofindia.indiatimes.com, 23. www.livemint.com, 24. www.moneycontrol.com, 25. www.reuters.com, 26. www.reuters.com, 27. www.reuters.com, 28. www.moneycontrol.com, 29. www.reuters.com
