Nifty Slips 0.36% as IT and Financials Weigh on Year-End Trading

Updated: December 26, 2025 16:13

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India’s Nifty 50 closed 0.36% lower on December 26, 2025, dragged by IT (-1%) and financial services (-0.5%). Profit-taking, weak global cues, and cautious sentiment ahead of year-end drove declines. Analysts expect near-term pressure but advise focusing on defensives as investors await earnings and policy signals in 2026.

India’s benchmark indices closed in the red on Friday, December 26, 2025, as investors booked profits and global cues weighed on sentiment. The Nifty 50 Index (.NSEI) provisionally ended 0.36% lower, marking a subdued close in the final trading week of the year.

Sectoral Performance

The Nifty IT Index (.NIFTYIT) was the biggest laggard, falling 1%, as global technology stocks faced pressure amid concerns over slowing demand and margin compression.
The Nifty Financial Services Index (.NIFTYFIN) slipped 0.5%, reflecting cautious positioning in banks and NBFCs ahead of quarterly earnings and regulatory updates.
Other sectors, including FMCG and energy, traded mixed, with defensive buying limiting broader downside.

Market Drivers

Analysts pointed to profit-taking after recent rallies, with investors preferring to lock in gains before the year-end.
Weak global cues, particularly from U.S. tech stocks and European markets, added to the cautious mood.
Concerns around interest rate trajectories and global growth outlook continued to weigh on sentiment.

Broader Market Impact

Mid-cap and small-cap indices also saw mild declines, though selective buying in consumer and healthcare names provided some support.
Trading volumes were relatively thin, typical of year-end sessions, amplifying volatility in sectoral indices.
Foreign institutional investors (FIIs) remained net sellers, while domestic institutional investors (DIIs) cushioned the fall with selective buying.

Investor Outlook

Market experts suggest that IT and financials may remain under pressure in the near term, though long-term fundamentals remain intact.
With 2026 around the corner, investors are expected to focus on earnings season, budget announcements, and global monetary policy signals.
Analysts advise a cautious approach, with emphasis on defensive sectors and quality stocks during this period of consolidation.

Sources: Reuters , Business Standard , Moneycontrol, Economic Times

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