The Indian equity markets began the trading day on December 29, 2025, with a cautious outlook, as both the Sensex and Nifty indices opened near flat levels. The Nifty 50 was above the 26,000 mark. However, early trading showed mixed trends across sectors.
The BSE Sensex opened marginally lower, but recovered to trade at 85,055.75, registering a negligible gain of 0.02%. This level places the Sensex approximately 1.3% below its 52-week high, signaling the benchmark remains close to its recent peak. The index is currently positioned above its 50-day moving average (DMA), which itself is situated above the 200 DMA, suggesting a sustained medium-term positive trend. On the other hand, the Nifty 50 declined 99.80 points or 0.38% to close at 26,042.30.
Sectorally, the metal sector emerged as a leader, buoyed by strong performances. The IT sector also saw gains. Conversely, utilities lagged, reflecting a divergence in investor sentiment. Out of 37 sectors tracked, 26 advanced while 11 declined, highlighting a broadly positive sectoral environment. The metal sector led the gains with an increase of 0.95%. The Nifty Metal Index outperformed, rising 0.59% to 10,806.15.
Market breadth indicated more declines than advances. Foreign institutional investors (FIIs) alongside domestic institutional investors (DIIs) activity remained key factors influencing market dynamics. The muted trade was marked by low participation and selective selling in heavyweight stocks.
In corporate news, IT services firm Coforge surged as much as 2.25% following the announcement of its acquisition of AI firm Encora for $2.35 billion.
From a technical perspective, the Nifty 50 appears to be entering a consolidation phase, struggling to hold above the 26,200 level. Technical signals suggest near-term indecision and range-bound trading, though low volatility and selective sectoral strength continue to provide underlying support. The index faces a hurdle at 26,200.
