Indian equity benchmarks are expected to start with little change on Friday, remaining near record highs amidst light year-end trading volumes. According to analysts, further upward movement will depend on earnings momentum.
As of 8:00 a.m. IST, Gift Nifty futures were trading at 26,111 points, suggesting the Nifty 50 would open near Wednesday's close of 26,142.1. Trading volumes are expected to remain thin during this period between Christmas and New Year holidays. Most markets, including India, were closed on Thursday for Christmas.
The Nifty and Sensex both reached record highs in November after a 14-month period, but have shown muted performance in December, declining by approximately 0.2% and 0.4%, respectively.
Ponmudi R, CEO at Enrich Money, noted that while the medium-term outlook for Indian markets remains positive, thin liquidity and year-end book squaring are likely to limit significant directional movements in the near term. Year-end book squaring involves financial institutions closing or rebalancing positions, resulting in reduced market activity, lower liquidity, and fewer trades. Average daily trading volumes of Nifty 50 stocks in December have been around 250 million shares, lower than the approximately 300 million shares in November, indicating decreased activity as the year concludes.
Foreign investors have been net sellers of Indian shares, offloading ₹17.95 billion ($200.75 million) on Tuesday, according to provisional data. So far in December, they have sold $1.3 billion and $17.7 billion in 2025. On Tuesday, turnover in the cash market was about 9% lower than the previous session and 15% below the average daily turnover in November on the National Stock Exchange of India.
Individual stock-related news includes IndusInd Bank, which announced that the SFIO is investigating the private lender under the Companies Act. Ola Electric has received government approval for ₹3.67 billion incentive payout under the production-linked incentive (PLI) scheme for automobiles and auto components. Panacea Biotec received an amended award from UNICEF for vaccine supply, projecting a rise in supply. Additionally, Vikran Engineering received a ₹4.59 billion order from NTPC Renewable Energy.
