Indian equities closed lower on December 29 as muted volumes and the absence of fresh triggers kept investors on the sidelines. The mood suggested a market catching its breath rather than reacting to any single shock, with many participants appearing reluctant to take fresh positions ahead of upcoming earnings and global cues.
Continued selling by foreign institutional investors added to the pressure. FIIs have been net sellers for most of the month, stepping aside only on a handful of sessions, which has weighed on sentiment.
The benchmark indices extended their losing streak. The BSE Sensex fell for the fourth consecutive session, shedding 345.91 points, or 0.41%, to close at 84,695.54. The Nifty 50 also ended lower for the third day in a row, slipping 100.20 points, or 0.38%, to 25,942.10.
The broader market showed deeper weakness. The BSE Midcap index declined 0.45%, while the BSE Smallcap index lost 0.50%, indicating selling pressure beyond frontline stocks.
Market participants pointed to a lack of immediate catalysts. Vinod Nair of Geojit Investments Limited, said the market appears short on triggers for a fresh move higher, with many investors operating in holiday mode.
He added that while the broader outlook for 2026 remains constructive, attention is likely to shift towards December-quarter earnings and clarity on the US trade agreement. In an environment marked by global trade uncertainty and a weakening rupee, large-cap stocks could remain relatively preferred for their earnings visibility.
On the Nifty 50, buying was selective. Seventeen stocks managed to close higher, led by Tata Steel and Tata Consumer Products, both of which rose over 1.5%. Asian Paints, Grasim and Nestle India also ended in positive territory, with gains largely concentrated in metal and FMCG names.
The selling side, however, was broader. Thirty-three Nifty stocks ended lower, with Adani Ports emerging as the biggest drag, declining over 2%. HCL Technologies, Power Grid, Trent and Adani Enterprises also posted losses of more than 1%.
Sectoral trends were mixed. Nifty Media stood out, rising nearly 1%, followed by marginal gains in Nifty FMCG and Nifty PSU Bank. On the other hand, Nifty IT and Nifty Bank saw the sharpest cuts, falling 0.75% and 0.53% respectively, reflecting pressure on rate-sensitive and technology stocks.
Trading activity was dominated by silver-linked instruments. Tata Silver ETF and Silver BEES featured among the most-traded counters on the NSE, tracking sharp swings in silver prices. Vodafone Idea also saw heavy volumes, with more than 53 crore shares changing hands.
Elsewhere, Hindustan Copper and HFCL were among the actively traded names by volume.
Seven stocks on the NSE gained 10% or more during the session, with Prakash Steelage, Rajnandini Metal and Country Condo hitting the upper circuit. A few others, including Mishra Dhatu Nigam and Madhav Copper, also posted strong gains.
At the same time, three stocks declined over 10%, including Krishival Foods, Brooks Laboratories and Modi Rubber.
Market breadth reflected the cautious mood. While 76 stocks touched fresh 52-week highs, as many as 130 stocks slipped to new one-year lows. The advance-decline ratio remained tilted towards sellers, with declines outnumbering advances roughly two to one.
From a technical perspective, analysts flagged weakening momentum. Rupak De, senior technical analyst at LKP Securities, said the Nifty saw profit booking as it slipped below the 26,000 level.
He noted that the index has moved below its 21-day exponential moving average and retraced more than half of its recent rise, raising questions over the durability of the previous rally. On the downside, support is seen near 25,900, while 26,000 could act as the first resistance on any rebound.
{By arrangement with livemint.com}