Indian Stock Market Ends Lower on Dec 26 Amid Weak Volumes

Indian Stock Market Ends Lower on December 26 Amid Weak Year-End Volumes and Lack of Fresh Triggers

The Indian stock market closed lower on Friday, December 26, as profit booking and weak year-end trading volumes weighed on investor sentiment. Selling pressure was seen across most sectors, while the absence of fresh domestic and global triggers kept traders cautious.

The benchmark Nifty 50 ended the session at 26,043, down 0.39%, while the S&P BSE Sensex closed at 85,035, declining 0.44%. Despite the day’s losses, both indices managed to post marginal weekly gains of over 0.30%, ending their respective multi-week losing streaks in a holiday-shortened trading week.

Broader Markets and Sectoral Performance

The broader market remained under pressure. The Nifty Midcap 100 slipped 0.31%, while the Nifty Smallcap 100 edged up 0.11% during the session. On the BSE, the Midcap index declined 0.18%, and the Smallcap index fell 0.34%.

Sector-wise, most indices closed in the red. IT stocks underperformed, with the Nifty IT index falling nearly 1%. The decline followed Infosys’ announcement of higher entry-level wages for freshers, which raised concerns about rising operating expenses. Additionally, recent changes to the H-1B visa process by the US Department of Homeland Security added further uncertainty to the technology sector.

Auto, pharma, and PSU banking stocks also ended lower. In contrast, metal stocks gained 0.55%, while consumer durables rose 0.31%, making them the only notable gainers of the day.

Sensex and Nifty: Key Closing Highlights

• Sensex: Down 367 points (0.43%) at 85,041.45

• Nifty 50: Down 100 points (0.38%) at 26,042.30

• Market Capitalisation: Total BSE-listed market cap declined to approximately ₹474 lakh crore, compared to ₹475 lakh crore in the previous session, resulting in an estimated ₹1 lakh crore erosion in investor wealth in a single day.

Weekly, the Sensex gained 112 points (0.13%), ending a two-week losing streak, while the Nifty 50 rose 0.30%, snapping its three-week decline.

Why Did the Market Fall Today?

Market participants attributed the decline to profit booking, thin year-end volumes, and a lack of fresh triggers. Foreign institutional investors (FIIs) resumed selling after a brief pause and remained net sellers over the past three trading sessions, further dampening sentiment.

According to Vinod Nair, Head of Research at Geojit Investments, domestic equities faced pressure due to low trading activity typical of year-end sessions and cautious positioning ahead of upcoming quarterly earnings.

What Lies Ahead?

Analysts expect the domestic market to remain range-bound until the start of the December quarter (Q3FY26) earnings season. Major IT companies such as TCS and HCL Technologies are scheduled to announce their results on January 12, which could provide the next directional trigger for the market.

Disclaimer:
This article is for educational and informational purposes only. The views expressed are based on market data and analyst commentary and do not constitute investment advice. Investors are advised to consult certified financial professionals before making any investment decisions, as market conditions are subject to change.