Dalal Street witnessed a subdued trading session as markets resumed operations following the Christmas holiday, with both the Sensex and Nifty indices reflecting a cautious sentiment. The BSE Sensex initially opened lower, shedding over 100 points, and continued to trade negatively, influenced by selling pressure in energy and IT stocks. As of 9:35 AM on Friday, December 26, 2025, the Sensex was down by 130.66 points, or 0.15 percent, hovering around 85,278.04. Similarly, the NSE Nifty 50 mirrored this trend, opening lower and testing the 26,100 mark. The Nifty was at 26,111.80, down 37.75 points, or 0.15 percent.
Broader market indices presented a mixed picture. The Nifty Midcap index displayed gains, rising by 0.21 percent, while the Nifty Smallcap index showed a marginal increase of 0.08 percent. Sectoral performance was varied, with Bajaj Finance, Eternal, Sun Pharma, TCS, Tata Steel, and HCLTech identified as top losers, experiencing declines of up to 1.4 percent. Conversely, BEL, Titan, NTPC, Power Grid, and ICICI Bank emerged as notable gainers.
Contributing to the market's subdued performance was the depreciation of the Indian Rupee. In early trade, the rupee weakened by 22 paise to 89.93 against the US dollar. This decline was attributed to persistent capital withdrawals by foreign investors and increased dollar demand from bullion importers. On Wednesday, December 24, the rupee had settled lower by 16 paise at 89.79 against the US dollar.
Among specific stocks, Eternal Ltd., a player in the e-retail and e-commerce sector, experienced a notable decline. The stock has been under pressure, slipping 21% from its October peak, with analysts suggesting that technical indicators point to continued downward pressure. On December 24, Eternal's stock price showed a marginal decline of 0.11%, while over the past four days, the stock has seen a cumulative decline of 5.6%. However, experts also suggest that high-risk short-term traders could consider buying the stock around current levels, with a potential target of Rs 330 in the next 3-4 weeks, contingent on strict stop-loss discipline.
Global cues and foreign fund outflows further influenced market sentiment. Foreign institutional investors (FIIs) had offloaded equities worth Rs 1,794.80 crore on Tuesday, according to exchange data. Market participants are closely monitoring global developments and awaiting fresh catalysts as the year approaches its end.
Overall, the Indian stock market displayed a cautious trend, influenced by a combination of factors including global market cues, foreign fund outflows, and currency depreciation. Trading volumes are expected to remain thin during this holiday-shortened week, with investors adopting a stock-specific approach.
