On the 30-share Sensex, shares of Tata Steel, Bharat Electronics, Eternal, Kotak Mahindra Bank and Infosys led early gains, rising between 0.4% and 1.5%.Broader markets were mixed, with mid-cap stocks up 0.1%, while small caps fell 0.02%, reflecting selective risk appetite.
Hindustan Copper rose as much as 15% to a record high, reflecting renewed investor interest in metal stocks, especially copper, against the backdrop of rising global prices and supportive macroeconomic signals.
The Sensex and Nifty have remained range-bound in recent sessions as meager year-end trading volumes have dampened conviction on both sides of the market.
Expert views
The standout feature of 2025 was India’s stark underperformance compared to most developed and emerging markets, said Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments. He added that this underperformance will change in 2026, supported by solid fundamentals: Indian macros are in a Goldilocks position with robust economic growth and a stable financial structure and the most important factor from a market perspective, namely earnings growth, is expected to recover from the third quarter of FY2026 onwards.
“While these are favorable factors, they are not enough to spark a quick rally. A strong recovery in the market needs a trigger like a US-India trade deal, with favorable developments for India. There is no clarity yet on when this will happen. Therefore, a consolidation phase is likely in the near term and investors can use this consolidation phase to slowly build high-quality stocks, prioritizing largecaps,” Vijayakumar said.
FII/DII tracker
On the institutional front, foreign institutional investors (FIIs) sold shares worth a little over Rs 317 crore on December 26, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,772 crore.
Global markets
Asian shares climbed to a six-week high on Monday, while the dollar hovered around a three-month low, as investors priced in rate cuts by the Federal Reserve next year, a shift that has also fueled a powerful rally in precious metals.
Silver briefly rose above $80 an ounce for the first time before pulling back sharply in volatile trading. Platinum and palladium also retreated after hitting record highs. Gold fell nearly 1%, though it has repeatedly hit new highs this year, buoyed by dollar weakness, safe-haven demand and growing push for lower interest rates.
Geopolitical risks returned to the spotlight after US President Donald Trump said on Sunday that he and Ukrainian President Volodymyr Zelenskiy were “getting a lot closer to an agreement to end the war in Ukraine.”
In stock markets, MSCI’s broad Asia-Pacific index rose 0.27%, its highest level since October 3, marking a strong start to the final trading week of the year. The index is set to rise more than 25% in 2025, largely driven by technology stocks as enthusiasm around artificial intelligence continues to build.
South Korea’s Kospi rose 1.5% to a nearly two-month high, taking its gain this year to 74%, on track for its strongest annual performance since 1999. Japan’s Nikkei fell 0.4%, while Taiwanese shares rose 0.3% to a record high.
Rough impact
Oil prices rose on Monday as investors assessed renewed tensions in the Middle East that could threaten supply, while uncertainty remained over progress in peace negotiations between Russia and Ukraine.
Brent crude rose 56 cents, or 0.9%, to $61.20 a barrel by 0236 GMT. US West Texas Intermediate gained 51 cents, also about 0.9%, to $57.25.
Rupee vs dollar
The Indian rupee weakened 5 paise to 89.95 against the US dollar in early trade on Monday, with traders expecting the currency to remain under pressure throughout the week as year-end outflows and positioning weigh on sentiment.
The dollar index, which tracks the greenback against six major peers, fell 0.08% to 97.953 and is on track for an annual decline of 9.7%, the sharpest annual decline since 2017.
(with input from agencies)
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