 "Nifty, Sensex rally on last 2025 trading day")
India's benchmark indices are set to end the calendar year 2025 (CY25) on a high note amid a rally in the shares of oil marketing companies (OMCs) and metal firms.
On Wednesday, the Nifty index rose as much as 0.96 per cent, or 249 points, to 26,187.9, while the 30-stock Sensex advanced 0.90 per cent, or 765 points, to 85,437.1. As of 3:30 PM, the Nifty closed 0.74 per cent higher at 26,129.6, while the Sensex ended higher by 0.64 per cent at 85,220.6.
During the session, the market breadth remained strong on the BSE. Out of 4,178 stocks traded on the BSE, 2,748 advanced versus 1,250 declines, underscoring broad-based buying beneath the index level.
On the sectoral front, most indices were in the green, with the Nifty Oil and Gas index up over 2 per cent. Nifty Consumer Durables and Nifty Metal indices rose over 1 per cent. On the lower side, Nifty IT was the only sector in the red, falling 0.2 per cent.
In the broader market, the Nifty Midcap 100 and Nifty Smallcap 100 indices rose 1 per cent, each.
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Meanwhile, the Nifty50 and Sensex indices are poised to end higher for the 10th straight calendar year, rising 10 per cent and 8.5 per cent, respectively, this year.
The coming days are going to be eventful, starting with the auto sales data for December, third-quarter corporate results, expectations from the budget and other news relating to the global economy, like the possible Fed action in 2026, VK Vijayakumar, chief investment strategist, Geojit Investments, said. "Earnings growth will be the single most important factor determining the market trend in 2026. The FII flows in 2026, too, will depend on the earnings performance and expectations surrounding that." CATCH STOCK MARKET LIVE UPDATES TODAY
Why are Indian stock markets rising?
Steel stocks soar
Share prices of steel companies rose for the second straight day, and rallied up to 5 per cent amid reports that the government has notified the Anti-dumping duty/safeguard duty on flat steel imports for a period of 3 years (FY26-28E).
Jindal Stainless (JSL), Tata Steel, Jindal Steel, JSW Steel and Steel Authority of India (SAIL) soared up to 5 per cent on the BSE in Wednesday’s intra-day trade. In the past two trading days, these stocks have surged between 5 per cent and 10 per cent.
Positive outlook for CY26
Analysts maintained a positive outlook on equities, with a preference for large-cap stocks, citing expectations of easing geopolitical risks and moderating tariff differentials in 2026.
Geojit Investments, on Wednesday, marginally raised its base target for December 2026 to 29,150 from 28,500 earlier, implying a potential upside of about 12 per cent on a year-on-year (Y-o-Y) basis for calendar year 2026. The brokerage said benign inflation and an improving demand environment, supported by both fiscal and monetary measures, point to a turnaround in the domestic earnings cycle.
Broader markets rally
The benchmark indices rose alongside a strong rally in the broader market, with the Nifty Midcap 100 and Nifty Smallcap 100 gaining 1.3 per cent and 1 per cent, respectively. On the BSE, advances outpaced declines, with 2,748 stocks rising against 1,250 declines out of 4,178 stocks traded, highlighting broad-based buying beyond the frontline indices.
Rally in heavyweight stocks
The rally on Wednesday was driven by gains in heavyweight stocks, with Reliance Industries climbing over 2 per cent. Shares of Tata Steel, Titan, and Axis Bank rose nearly 2 per cent each, while HDFC Bank advanced more than 0.5 per cent.
Technical view
Fresh aggressive short positions offer a favourable risk–reward only below 25,830, with an initial downside target near 25,700 and a possible extension toward 25,300 if market breadth weakens materially, Ponmudi R, chief executive officer of Enrich Money, said. "On the upside, 26,100–26,160 stands as the first resistance, while the 26,250–26,300 zone continues to act as a strong supply area, repeatedly attracting profit booking and short selling."
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