The Indian equity market wrapped up 2025 on a strong note, with benchmark indices logging sharp gains on December 31 amid broad-based buying and short covering. Investor sentiment improved on expectations of better corporate earnings, a potential India–US trade deal, and hopes of foreign fund inflows returning in the new year.
The Sensex surged 546 points, or 0.64 percent, to close at 85,220.60, while the Nifty 50 climbed 191 points, or 0.74 percent, to settle at 26,129.60. The broader market outperformed, with the BSE Midcap index rising 1 percent and the Smallcap index gaining 1.19 percent.
Investor wealth rose sharply, with the total market capitalisation of BSE-listed companies increasing by nearly ₹4 lakh crore in a single session to about ₹476 lakh crore.
1. Why did the market rise today?
Markets advanced mainly on short covering after the recent correction. Attention is now shifting to the Q3 earnings season, which is widely expected to show an improvement after several muted quarters. Optimism about growth prospects in 2026 also lifted sentiment.
2. Sensex and Nifty performance
Reliance Industries, Kotak Mahindra Bank and Axis Bank were the biggest contributors to the Sensex rally. The Nifty 50 closed firmly above the 26,100 mark, signalling improving near-term sentiment.
3. Top gainers on Nifty 50
JSW Steel jumped 4.88 percent, ONGC rose 2.46 percent, and Tata Steel gained 2.35 percent. As many as 44 stocks ended the day in positive territory on the Nifty.
4. Top losers on Nifty 50
IT stocks underperformed, with TCS down 1.13 percent and Tech Mahindra slipping 0.85 percent. Grasim Industries also ended marginally lower.
5. Sectoral performance
Except for Nifty IT, which fell 0.30 percent, all sectoral indices closed higher. Nifty Oil and Gas surged 2.66 percent, while Consumer Durables, Media, Metal, PSU Bank, Auto and Private Bank indices rose by over 1 percent each. Nifty Bank gained 0.69 percent to close at 59,581.85.
6. Most active stocks by volume
Vodafone Idea topped the volume charts with 335.4 crore shares traded, followed by Filatex Fashions and Tata Silver ETF.
7. Mid- and small-cap action
Fourteen stocks on the BSE jumped more than 15 percent, including KSR Footwear, California Software Company, Softtech Engineers, Kiri Industries, SRG Housing Finance and Orient Technologies.
8. Advance–decline ratio
Market breadth remained positive. Of the 4,374 stocks traded on the BSE, 2,799 advanced, 1,413 declined, and 162 remained unchanged.
9. 52-week highs and lows
Around 126 stocks, including Titan Company, Shriram Finance, Indus Towers, IDFC First Bank, Canara Bank and BPCL, touched fresh 52-week highs. At the same time, 145 stocks hit 52-week lows, including Crompton Greaves Consumer Electricals, Embassy Developments and Whirlpool of India.
10. Nifty technical outlook
Analysts said the 26,230–26,250 zone is an immediate resistance for the Nifty. A sustained move above this level could open the door for a rally towards 26,350 and 26,500, while the 26,050–26,000 band is seen as a strong support area in the near term.
With the year ending on a positive note, market participants will now closely track earnings cues and global developments for direction in early 2026.
(By arrangement with livemint.com)
