The BSE Sensex rose 31 points, or 0.04%, to 85,073 at the open, while the NSE Nifty 50 added 4 points, or 0.01%, to begin the session at 26,046.
On the 30-stock Sensex, shares of Tata Steel, Bharat Electronics, Eternal, Kotak Mahindra Bank and Infosys led early gains, rising between 0.4% and 1.5%.
Broader markets were mixed, with midcap stocks edging up 0.1%, while smallcaps slipped 0.02%, reflecting selective risk appetite.
Hindustan Copper surged as much as 15% to a record high, reflecting renewed investor interest in metal stocks, particularly copper, amid rising global prices and supportive macroeconomic signals.
The Sensex and Nifty have remained range-bound in recent sessions, as thin year-end trading volumes have curbed conviction on both sides of the market.
Expert views
The standout feature of 2025 has been India’s stark underperformance compared to most developed and emerging markets, said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, adding that this underperformance is set to change in 2026 supported by solid fundamentals: India’s macros are in Goldilocks setting with robust economic growth and stable financial construct and the more important factor from the market perspective, which is earnings growth, is set to recover from Q3 FY26 onwards.
“Even though these are favourable factors, these are not sufficient to trigger a rally soon. A strong rebound in the market needs a trigger like a U.S.-India trade deal with favourable thrills for India. There is no clarity yet on when this will happen. Therefore, a consolidation phase is likely in the near-term, and investors can utilise this consolidation phase to slowly accumulate high quality stocks giving priority to largecaps,” said Vijayakumar.
FII/DII Tracker
On the institutional front, Foreign Institutional Investors (FIIs) sold equities worth a little over Rs 317 crore on December 26, while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 1,772 crore.
Global Markets
Asian equities climbed to six-week highs on Monday, while the dollar lingered near a three-month low as investors priced in interest-rate cuts by the Federal Reserve next year, a shift that has also fueled a powerful rally in precious metals.
Silver briefly surged past $80 an ounce for the first time before retreating sharply in volatile trade. Platinum and palladium also pulled back after touching record highs. Gold slipped nearly 1%, though it has repeatedly set new peaks this year, buoyed by dollar weakness, safe-haven demand and growing bets on lower rates.
Geopolitical risks returned to focus after U.S. President Donald Trump said on Sunday that he and Ukrainian President Volodymyr Zelenskiy were “getting a lot closer” to an agreement to end the war in Ukraine.
In equity markets, MSCI’s broad Asia-Pacific index rose 0.27%, its highest level since October 3, marking a strong start to the final trading week of the year. The index is up more than 25% in 2025, driven largely by technology stocks as enthusiasm around artificial intelligence gathered pace.
South Korea’s Kospi jumped 1.5% to a near two-month high, taking its gains this year to 74%, on track for its strongest annual performance since 1999. Japan’s Nikkei slipped 0.4%, while Taiwanese shares edged up 0.3% to a record high.
Crude impact
Oil prices edged higher on Monday as investors assessed renewed tensions in the Middle East that could threaten supply, while uncertainty lingered over progress in Russia–Ukraine peace negotiations.
Brent crude rose 56 cents, or 0.9%, to $61.20 a barrel by 0236 GMT. U.S. West Texas Intermediate gained 51 cents, also about 0.9%, to $57.25.
Rupee vs Dollar
The Indian rupee weakened 5 paise to 89.95 against the U.S. dollar in early trade on Monday, with traders expecting the currency to remain under pressure through the week as year-end outflows and positioning weigh on sentiment.
The dollar index, which tracks the greenback against six major peers, slipped 0.08% to 97.953 and is on course for a 9.7% annual decline, its sharpest yearly fall since 2017.
(with inputs from agencies)