Markets opened on a subdued note Monday morning, with benchmark indices trading marginally lower amid thin year-end volumes and mixed global cues. The BSE Sensex, which closed at ₹85,041.45 on Friday, opened today at ₹85,004.75 and was trading at ₹84,986.29, down 55.16 points or 0.06 per cent at 10:05 IST. The NSE Nifty 50, which had closed at 26,042.30, opened at 26,063.35 and was hovering at 26,029.45, down 12.85 points or 0.05 per cent.
“Indian equity markets are likely to open on a flat to mildly positive note, with GIFT Nifty futures hovering around 26,100, up about 24 points,” said Ponmudi R, CEO of Enrich Money. “The early tone suggests a cautiously constructive bias, though thin year-end liquidity and selective participation are expected to keep sentiment measured rather than exuberant.”
Metal stocks led the gainers on the Nifty 50, with Tata Steel advancing 2.26 per cent to ₹172.94, JSW Steel rising 1.02 per cent to ₹1,105.60, and Eterna gaining 1.08 per cent to ₹284.80. Bharat Electronics Limited climbed 0.77 per cent to ₹401.50, while Tech Mahindra added 0.74 per cent to ₹1,624.30.
On the losing side, Adani Ports led the decliners, falling 1.18 per cent to ₹1,469.60, followed by Power Grid Corporation which dropped 0.87 per cent to ₹263.15. Financial stocks also witnessed selling pressure, with Axis Bank declining 0.67 per cent to ₹1,220.00, Bajaj Finserv down 0.67 per cent at ₹2,004.10 and HDFC Life losing 0.63 per cent to ₹743.70.
“Nifty remained under pressure through Friday, ending 100 points lower at 26,042 amid thin holiday volumes, while Sensex fell 367 points to 85,041 and Bank Nifty slipped 172 points to 59,011,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd. “Supportive global cues were overshadowed by FII selling of ₹318 crore and lingering US-India trade frictions.”
Market analysts identified key technical levels for the day. “The Nifty 50 remains technically constructive despite recent consolidation,” said Aakash Shah, Technical Research Analyst at Choice Equity Broking. “Immediate support is placed at 25,850-25,900, and a breach below this zone could drag the index towards 25,800. On the upside, 26,150-26,200 remains a crucial resistance band.”
Global markets presented mixed cues, with Japan’s Nikkei 225 trading lower by around 0.30 per cent, while South Korea’s KOSPI outperformed with gains of nearly 1.5 per cent. US stock markets had risen during the shortened holiday week, with the S&P 500 and Dow Jones Industrial Average both reaching record highs, supported by robust Q3 GDP expansion at 4.3 per cent annualised rate.
“Strong data drive US markets to records; Indian equities recover modestly,” noted Devarsh Vakil, Head of Prime Research at HDFC Securities. “Indian markets ended the holiday-shortened week marginally higher, snapping a three-week losing streak, though Friday’s session closed lower amid profit booking and thin volumes.”
The commodities market witnessed significant movements, with precious metals reaching new highs. “Gold and silver surged to new all-time highs as bullish sentiment remained intact across global markets,” said Rahul Kalantri, VP Commodities at Mehta Equities Ltd. Gold has support at $4,470-4,425 while resistance stands at $4,555-4,570, he added. In rupee terms, gold has support at ₹1,38,550-1,36,310 with resistance at ₹1,41,350-1,42,670.
The Indian rupee weakened to close at 89.85 against the US dollar on Friday, attributed to persistent foreign outflows and increased dollar demand from metal importers. “USD/INR is trading marginally higher near the 89.80 zone, recovering modestly amid renewed dollar demand and year-end positioning,” said Ponmudi R.
Looking ahead, Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, highlighted structural positives. “India’s macros are in Goldilocks setting with robust economic growth and stable financial construct,” he said. “The more important factor from the market perspective—earnings growth—is set to recover from Q3 FY26 onwards.”
Market participants are now tracking India-US trade developments, FII flows, rupee movement, crude prices and upcoming Q3 earnings. With the IIP data release and F&O monthly expiry approaching, investors are adopting a selective approach, reinforcing expectations of continued range-bound trading in the near term.