As investors are affected by FII exits, the Sensex and Nifty close slightly lower


Indian equity markets ended Tuesday’s session on a subdued note, with benchmark indices slipping marginally as investors remained cautious in the final trading days of 2025. Muted global cues and continued foreign institutional investor (FII) outflows kept sentiment restrained, despite selective buying in a few pockets of the market.

The S&P BSE Sensex edged down by 20.46 points to close at 84,675.08, while the NSE Nifty50 declined slightly by 3.25 points to settle at 25,938.85. The narrow movement in both indices reflected the lack of strong directional triggers, with traders largely choosing to stay on the sidelines.

Commenting on market performance, Vinod Nair, Head of Research at Geojit Investments Limited, said the domestic market remained volatile and ended the monthly expiry session almost flat. He noted that although global cues were supportive and some value buying was visible, persistent selling by foreign investors continued to weigh on overall sentiment. A stronger rupee offered limited relief, but it was not enough to drive a meaningful rebound.

On the positive side, several heavyweight stocks managed to post gains. Tata Steel led the advance, rising 2.03 percent, followed closely by Mahindra & Mahindra, which climbed 2 percent. Bajaj Finserv gained 1.66 percent, Axis Bank rose 1.13 percent, and Bharti Airtel added 0.91 percent, emerging as the key contributors to the Sensex’s limited upside.

However, losses in select frontline stocks offset these gains, keeping the broader market under pressure. Eternal emerged as the biggest laggard, falling 2.10 percent. InterGlobe Aviation (IndiGo) declined 1.37 percent, Infosys slipped 1.28 percent, Asian Paints dropped 1.09 percent, and UltraTech Cement ended 0.84 percent lower.

Sector-wise performance was mixed. Auto stocks saw buying interest after robust industrial production data supported optimism around demand. Metal stocks also advanced, helped by higher global metal prices that are expected to improve realisations. PSU banks recorded gains as well, supported by signs of improving asset quality and stable fundamentals.

Looking ahead, market participants expect indices to remain range-bound in the near term. According to Nair, investors are likely to stay cautious while awaiting clearer cues from ongoing US–India trade discussions and upcoming third-quarter earnings announcements, both of which are expected to play a key role in determining market direction in the weeks ahead.


 

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