Indian equity benchmarks are expected to open with little change on Tuesday, following two consecutive sessions of gains. Analysts attribute this muted start to a lack of fresh market triggers and potentially lower trading volumes as the year draws to a close.
Trading Indicators
As of 8:04 a.m. IST, the Gift Nifty futures were trading at 26,260, suggesting the benchmark Nifty 50 will likely open near Monday's close of 26,172.4. Over the previous two sessions, the Nifty 50 index has collectively risen by 1.4%, while the BSE Sensex has increased by 1.3% during the same period, fueled by expectations of renewed foreign inflows and a strengthening rupee.
Foreign Investment Trends
On Monday, foreign portfolio investors (FPIs) sold Indian shares worth ₹4.57 billion ($51.04 million) on a net basis, which ended their three-session streak of net buying, according to provisional data.
Market Turnover
Monday’s turnover in the cash market was notably lower, with a 21.5% decrease from the previous session, amounting to ₹974.58 billion on the National Stock Exchange of India. This figure also represents a roughly 7% decrease compared to the average daily turnover recorded in November.
Global Market Context
Trading volumes in global markets are generally thin during this time of year, with the holiday season in the United States impacting market activity. Despite this, Asian shares experienced gains alongside precious metals on Tuesday, as investors continued momentum buying in anticipation of the festive holidays. An advanced reading on U.S. GDP is expected later in the day.
Stocks to Watch
- HCLTech: HCLTech's software business division intends to acquire Jaspersoft, an embedded analytics and pixel-perfect reporting platform, from Cloud Software Group for $240 million.
- NSE: The National Stock Exchange (NSE) will exclude futures and options contracts on Indian Railway Catering and Tourism Corp (IRCTC) effective February 25.
- Antony Waste Handling Cell: Antony Waste Handling Cell has secured a contract worth ₹3.29 billion from Thane Municipal Corporation.
Additional Factors
It's worth noting that earlier in the year, in July 2025, the Indian stock market experienced a similar muted start before recovering, with the Sensex and Nifty trading marginally higher following a weak opening. At that time, positive sentiment in Asian markets and fresh foreign fund inflows contributed to the recovery. Moreover, there were optimistic signals regarding a potential trade deal between the U.S. and India. Similarly, in September 2025, the Nifty50 and BSE Sensex were projected for a muted start after a three-session rally, influenced by U.S. policy easing and progress in trade discussions between New Delhi and Washington.
