Indian equity benchmarks opened on a mixed note to start the week. Trading activity is subdued as the year draws to a close, with most participants away on vacation. Markets are expected to remain flat to negative due to the absence of major triggers.
The Nifty 50 index opened at 26,063.35, registering a small gain. The BSE Sensex began the session slightly lower. This muted opening reflects widespread holiday-led inactivity.
Market expert Ajay Bagga noted the last three days of an eventful year are here. Volumes are down as most of the working humanity is on year-end vacations. Indian markets will see the December index expiry for two key indices on Tuesday, so there could be some volatility.
He pointed out that the India VIX has stayed at historically low levels, in the single digits. The overbought markets have become neutral to oversold markets. This is a good set up for a positive move at some time.
For now, we expect low volumes and lack of any catalysts this week to lead to flat to negative markets. The triple positive catalysts of the Union Budget 2026, Q3 FY2026 corporate earnings recovery and progress on the US-India trade deal will start helping Indian markets later in January 2026.
For this week, low volumes will be key. Profit booking and low propensity to take fresh positions at a universal vacation time will define the stock markets.
In the broader market, the Nifty Midcap 100 was down slightly. The Nifty Smallcap 100 traded marginally higher. Sectoral performance on the NSE was mixed.
Nifty Auto was slightly higher, while Nifty IT, FMCG, Pharma, and PSU Bank indices traded in the red. Nifty Metal outperformed other sectors, rising notably.
The traditional year-end ‘Santa rally’ is likely to be absent this year. The precious metals and copper are doing the heavy lifting across asset classes.
Silver briefly touched USD 80 in Asian trading. It has moved to the third position across assets, behind only gold and Nvidia. Gold, after hitting another record high last week, was trading flat on Monday morning.
SEBI-registered analyst Sunil Gurjar said the Nifty is hovering near its All-Time High. Heavy FII selling continues to weaken the market. If the index breaches the 26,250 level, we could see a strong bullish rally.
He noted that while the Nifty has gained only about 10 per cent this year, it is technically sound. It is trading above all key moving averages. Strong relative strength in specific sectors suggests sustained buyer interest.
With limited economic data flow, experts expect markets to wind down 2025 on a flat note. Low volumes and festive cheer are contributing factors. Strong performance from precious metals and copper is also notable.
Markets are poised to begin 2026 with muted momentum. The week’s thin volumes set the stage for a quiet finish.