New Delhi, December 26, 2025 — The Indian stock market traded in the red on Friday as Dalal Street reopened after the Christmas holiday, with thin year-end volumes and a lack of fresh domestic triggers keeping sentiment cautious. By late morning, IT and heavyweight financial names were among the key drags, while select metals and PSU/railway-linked counters drew buying interest. Moneycontrol
Sensex Today, Nifty Today: Where the Market Stood in Late Morning Trade
After a soft start, benchmarks extended losses as profit-booking and foreign fund outflows remained in focus.
- Around 11:30 am IST, the BSE Sensex was down ~313 points (-0.37%) at ~85,095.89, while the NSE Nifty 50 slipped ~86 points (-0.33%) to ~26,056. Moneycontrol
- Around 12:00 pm IST, updates showed the Nifty 50 near ~26,058 and the Sensex near ~85,096, with Nifty IT/Auto/Pharma among the top sectoral laggards, while metals and select “new economy” defensives held up relatively better. Business Standard
- Reuters also described the session as subdued, highlighting how year-end book-squaring and lower participation have compressed intraday ranges across Indian equities. Reuters
Why the Indian Stock Market Fell Today: The Big Triggers on December 26
1) Thin holiday liquidity is amplifying every move
Friday’s trade came during a holiday-thinned global week. With India closed on Thursday (Christmas) and multiple overseas markets running with reduced participation, traders pointed to low liquidity as a key reason swings looked sharper than the headline move suggests. Reuters
Reuters noted that average daily trading volume for Nifty 50 stocks has eased in December versus November, reinforcing the “thin tape” character of the market into year-end. Reuters
2) FII selling remains the overhang, even as DIIs provide a floor
Foreign flows stayed front-and-centre:
- Moneycontrol cited foreign institutional investors (FIIs) selling ₹1,721.26 crore in the latest available session (Wednesday, Dec 24), marking a third straight net-selling day. Moneycontrol
- The same report carried Geojit’s Dr. V.K. Vijayakumar warning that what looked like a Santa rally is “running out of steam” and the market may consolidate around current levels in the absence of fresh triggers. Moneycontrol
At the same time, domestic institutions have continued to counterbalance foreign selling in recent sessions, helping limit deeper drawdowns. The Times of India
3) Rupee pressure and crude uptick added to caution
Currency and energy prices also fed into risk appetite:
- Moneycontrol reported the rupee opening near 89.84 and weakening toward ~89.94 per US dollar, versus the prior close near 89.71, with traders citing outflows, importer dollar demand and firmer crude. Moneycontrol
- In commodities, Brent rose to about $62.48/bbl and WTI to about $58.58/bbl in the cited move, adding a mild headwind for a net oil-importing economy. Moneycontrol
4) IT and large financials dragged the benchmarks
Sectoral leadership clearly mattered today. Reuters said 12 of 16 major sectors were in the red, while live market trackers highlighted losses in IT and parts of financials as key reasons benchmarks stayed under pressure. Reuters
Stocks in Focus Today: Movers Driving the Tape
With the index range-bound, stock-specific news did much of the talking.
Key gainers / themes
- Ola Electric jumped after news linked to a ₹3.67 billion (₹367 crore) payout under a government scheme, making it one of the more watched momentum names in early trade. Reuters
- Panacea Biotec surged sharply after its UNICEF vaccine supply contract was revised upward, lifting sentiment in the stock. Reuters
- Railway-linked stocks saw a burst of buying after Indian Railways implemented a revised passenger fare structure, according to Business Standard’s live updates—an important catalyst for the rail ecosystem counters. Business Standard
Index supports
Live updates also flagged BEL and Titan among names supporting the benchmark at different points of the session, even as broader heavyweight selling continued. Business Standard
Market Forecasts & Outlook (Dec 26, 2025): What Analysts Expect Next
Near-term view: Consolidation is the base case
Across pre-market and live notes, the dominant expectation for the very near term is range-bound consolidation:
- Economic Times’ pre-market setup said analysts expect a narrow range this week amid limited triggers, with support shifting toward 26,000 and upside potential toward 26,300. The Economic Times
- The same ET note highlighted India VIX hovering around ~9.40 (near historical lows)—typically interpreted as a market pricing in low near-term volatility, supportive of a “grind higher / buy-on-dips” tape if flows cooperate. The Economic Times
- Moneycontrol’s “trade setup” similarly said consolidation could persist briefly, while still keeping an eye on higher levels (26,300–26,500) in the short term due to momentum indicators. Moneycontrol
Day-trader levels: Key supports and resistances being tracked
If you’re watching levels that traders and derivatives desks often reference:
- Moneycontrol pivot levels for Nifty 50 listed resistance at ~26,210 / 26,237 / 26,281 and support at ~26,124 / 26,097 / 26,054. Moneycontrol
- Options positioning (monthly) cited max Call OI at 26,200 (potential resistance) and max Put OI at 26,000 (potential support). Moneycontrol
- Financial Express quoted Kotak Securities’ Shrikant Chouhan calling the intraday texture non-directional, flagging 26,250 as a key resistance and 26,100 as immediate support—with risks of a move toward 26,000 if 26,100 breaks. The Financial Express
The flow story into 2026: Why FIIs matter even more than headlines
A broader (but highly relevant) risk factor is foreign allocation to India as 2025 closes.
Economic Times reported that FIIs have pulled substantial money from Indian equities in 2025, with outflows concentrated in sectors like IT and FMCG, while brokerages debated whether outflows can stabilize and potentially reverse as expectations build around Fed rate cuts, earnings visibility, and normalized valuations. The Economic Times
What to Watch Next on Dalal Street
As the market heads into the final trading days of 2025, here are the practical cues most desks are watching:
- FII/DII flows — whether foreign selling slows, and whether domestic flows continue to cushion dips. Moneycontrol
- Rupee vs dollar — any sharp move beyond the late-morning band can quickly feed into rate-sensitive and import-heavy themes. Moneycontrol
- Crude oil direction — even a modest rise can tilt sentiment at the margin, especially in a low-volume tape. Moneycontrol
- Nifty 26,000 zone — repeatedly flagged as an important support area across technical notes and derivatives positioning. The Economic Times
- Stock-specific news flow — with index moves muted, single-stock catalysts (government schemes, order wins, policy changes like rail fares) can dominate intraday leadership. Business Standard
Bottom Line
India’s stock market on December 26, 2025, is a classic year-end session: thinner liquidity, fewer macro triggers, and price action driven heavily by flows (especially FIIs) and stock-specific headlines. While the Sensex and Nifty traded lower into late morning, analysts broadly see the near-term as consolidation-led, with 26,000 on the Nifty emerging as a widely watched support as India heads into the final stretch of 2025. Moneycontrol
