With just two sessions left in 2025, India’s much-anticipated Santa rally has lost momentum. Markets are consolidating amid weak global cues, FII outflows, and subdued earnings. Analysts advise selective, stock-specific trades and caution against speculation, while optimism lingers for a potential rebound in early 2026.
Market Outlook: Final Two Sessions of 2025
The festive cheer on Dalal Street has dimmed as the Santa rally stalls, leaving investors cautious. Despite global trade tensions and persistent foreign outflows, Indian equities are still set to close 2025 with nearly 10% annual gains. The absence of fresh triggers such as progress on the US-India trade deal has kept indices range-bound.
Key Highlights for Traders
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Consolidation Mode: Nifty and Sensex are expected to hover near current levels rather than make sharp moves.
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Light Volumes: Trading activity remains muted as investors prefer stock specific bets over broad market speculation.
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Selective Opportunities: Analysts recommend focusing on value driven sectors and monitoring technical support levels.
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2026 Outlook: Market experts foresee potential for a fresh rally in early 2026, driven by domestic liquidity and easing global uncertainties.
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Risk Factors: Persistent FII outflows and subdued earnings growth remain key challenges.
Strategic Takeaway
Investors should adopt a cautious, stock-specific approach in the final sessions of 2025, balancing short-term consolidation with long-term optimism for 2026.
Sources: Mint, India Today, NewsBytes