Closing Bell: Sensex closes 350 pts lower, Nifty ends below 26,050; financials, IT weigh

Shares of Ola Electric rose 5% to a 10-day high of Rs 37.25 apiece on December 26. The stock was up for five consecutive sessions and gained 19% during the period. The shares of the electric two-wheeler maker rose after the government's directive that Rs 367 crore be sanctioned to the company under the production-linked incentive scheme for automobile and auto components.

Stylam Industries on December 26 announced that Japan’s AICA Kogyo will buy 40 percent stake in the company for Rs 1,525 crore.

The shares of the company fell 5 percent to trade at Rs 2,185 apiece after the announcement in the afternoon trade.

The stake acquisition will be done by the Japanese conglomerate in various tranches. Stylam’s promoters Pushpa Gupta, Dipti Gupta and Manav Gupta have entered into a share purchase agreement with the company to sell around 45.97 lakh shares, representing 27.12 percent stake, in two tranches.

The board of Manappuram Finance Ltd. Friday approved raising the borrowing limit for 2025-26 (Apr-Mar) to Rs 75,000 crore, the gold financier said in an exchange filing.

On Friday, the board of the Kerala-based company also approved investment of Rs 250 crore in Asirvad Micro Finance Ltd., a key subsidiary of the company. The investment will be made in either a single tranche or different tranches for capital expenditure and working capital requirements of Asirvad Micro Finance.

Shares of NBCC India rose over 5% to touch an over 5-month high of Rs 122.50 during the session Friday. The rise in the stock comes after the company announced starting its overseas real estate operations in Dubai, United Arab Emirates, through its wholly-owned subsidiary NBCC Overseas Real Estate LLC. The company also signed a memorandum of understanding with the Mumbai Port Authority to develop a CGO Complex (Central Government Offices Complex) on 25 acres on Mumbai Port Trust land.

Sectoral action was mixed in the afternoon session. Metals led gains, with the Nifty Metal index up about 0.65 percent today and more than 25 percent year-to-date. FMCG also traded slightly higher. Selling persisted in IT, which slipped nearly 1 percent and remains the biggest underperformer this year with an 11+ percent decline. Pharma and Auto indices were also marginally lower, while PSU Banks saw muted moves despite strong year-to-date gains. Media continued to lag the most over the past year.

The divergence between the headline and broader markets persisted in the afternoon session. While the Nifty 50 was down 0.34 percent, the Nifty Midcap 100 edged 0.08 percent higher and the Smallcap 100 gained 0.32 percent. On a year-to-date basis, midcaps remain up 5.77 percent and smallcaps are still down 5.35 percent, reflecting the recent volatility in broader equities. Across the week, however, smallcaps have risen more than 2 percent, signalling renewed interest in select pockets outside the benchmark index.

At 2:00 pm, the Sensex was down 340.65 points or 0.40 percent at 85,068.05, and the Nifty was down 92.45 points or 0.35 percent at 26,049.65. About 1708 shares advanced, 2098 shares declined, and 128 shares unchanged.

The shares of Titan Company rose more than 2 percent on December 26 after the company announced that it is set to launch 'beYon' brand to offer lab-grown diamond jewellery. The shares of the company rose to a fresh 52-week high of Rs 4,006.90 apiece on Friday, snapping a two-session losing streak.

Since its launch in 1986, the BSE Sensex has delivered an annualised return of 13.4 percent, broadly mirroring India’s nominal GDP growth of about 13 percent over the same period. From a base value of 549 in January 1986 to nearly 85,000 today, the index has risen in line with the economy through liberalisation, market cycles and structural shifts. BSE data shows this alignment holds across rolling 10–25 year periods as well, underscoring stable long-term behaviour despite sharp shorter-term volatility.

As the Sensex approaches its 40-year milestone next week, BSE data shows the index has weathered multiple drawdowns of over 30%, including a fall of more than 60% during the 2008 global financial crisis. While earlier corrections — such as those in the mid-1990s, 1998 and 2000 — often took close to a decade to recover, major declines in the post-2000 era have typically been recouped within three to five years, reflecting deeper liquidity and broader investor participation.

Advance-decline trends stayed negative on the headline indices. On the Nifty 50, only 16 stocks were advancing against 34 declining, with the index at 26,048.3, down 0.36 percent. The broader Nifty 500 also reflected a softer tone, with 222 gainers versus 275 losers as the index slipped 0.17 percent to 23,809.35.

Titan Company was the biggest positive contributor to the Nifty, as the stock climbed over 2 percent to around Rs 3,992. Bharat Electronics and Adani Enterprises also supported the index with gains of 0.8 percent and 0.7 percent, respectively. Other notable contributors included JSW Steel, Nestle India, UltraTech Cement, and Hindalco.

The market remained divided across sectors. IT was the biggest drag, down 0.9 percent, followed by pharma, which slipped 0.45 percent, and infra, down 0.17 percent. In contrast, metals gained 0.61 percent, supported by continued buying in steel and mining stocks, while PSU banks inched up 0.07 percent. FMCG and realty saw muted moves, rising 0.09 percent and 0.12 percent, respectively, even as overall sentiment stayed cautious.

The Nifty 50 was down 0.36 percent, while the Nifty Bank slipped 0.24 percent. In contrast, the midcap and smallcap indices continued to outperform, with the Nifty Smallcap 100 up 0.35 percent and the Nifty Midcap 100 trading mildly in the green. Despite the weakness at the headline level, market breadth held relatively steady.

IRFC topped the turnover list within the Nifty 100 pack with trades worth over Rs 1,500 crore and a gain of nearly 9 percent. Hindustan Zinc, Vedanta, Mazagon Dock, and Bharat Electronics were also actively traded. Among financials, HDFC Bank and Bajaj Finance saw substantial volumes but remained under pressure.

Select smallcap counters continued to see strong traction, with Hindustan Copper, Karur Vysya Bank, MCX India, Manappuram Finance, and IIFL Finance touching their 52-week highs in intra-day trade.

ACC hit a new 52-week low of Rs 1,752 in intra-day trade before recovering slightly to Rs 1,731, reflecting continued weakness in the stock.

A few midcap names continued to attract strong buying interest even as the broader indices slipped. NALCO, Hindustan Zinc, NMDC, and Phoenix Mills all hit new 52-week highs during intra-day trade.

Despite the broader benchmarks trading lower, four largecaps — Hindustan Zinc, Titan Company, Vedanta and Eicher Motors — scaled fresh 52-week highs during the session. The stocks briefly touched their peak levels before paring some gains, indicating continued investor interest in these names even as the overall market remained under pressure.

At 1:00 pm, the Sensex was down 388.09 points or 0.45 percent at 85,020.61, and the Nifty was down 103.20 points or 0.39 percent at 26,038.90. About 1686 shares advanced, 2053 shares declined, and 152 shares unchanged.

Bondada Engineering shares gained over 2 percent after the company secured an EPC contract worth Rs 391 crore from NTPC Green Energy. The stock traded at Rs 375.60, extending gains on the back of the new order announcement.

Shares of Hindustan Copper rose 8% to Rs 473 apiece on December 26, their highest level since November 2010, as Shanghai copper prices hit new record high on tight supply. Hindustan Copper shares were top gainer on Nifty Metal index on December 26, which was up 0.2%. Shares of the state-owned copper miner and producer extended rally to 21% for the week, their best since December 2023.

The shares of Shriram Finance fell around 2 percent on December 26 as investors may have resorted to profit booking at elevated levels, after a six-session gaining streak. The shares of the NBFC dropped to Rs 957.30 apiece in the morning of Friday. This comes after the stock surged 16 percent in six sessions to hit a fresh 52-week high of Rs 983.7 per share on Wednesday.

Smallcap laggards: Brainbees Solutions, JBM Auto, IEX fall over 2%

Weakness persisted in select smallcap counters, with Brainbees Solutions sliding more than 3 percent. JBM Auto and Indian Energy Exchange dropped nearly 2 percent each, while Tata Teleservices, PNB Housing Finance, Zensar Technologies and Nuvama Wealth also traded lower.

Smallcaps: RailTel, Ircon, Hind Copper surge over 7%

RailTel shares jumped nearly 9 percent, while Ircon International and Hind Copper climbed more than 7 percent each. Karur Vysya Bank, Titagarh Rail Systems, RITES, NBCC, Jupiter Wagons, Sonata Software and Castrol India also gained strongly in the smallcap space.

Midcaps: Coforge drags, Dixon, Motilal Oswal also under pressure

Coforge slipped over 3 percent to top the midcap laggards, while Dixon Technologies, Motilal Oswal, MphasiS and L&T Finance declined more than 1 percent each. Ashok Leyland, Cummins, Oil India, Bandhan Bank and Apollo Tyres were also trading lower in the midcap space.

Midcaps: Rail Vikas Nigam Ltd shares zoom 13%, IRCTC, Indian Renew among top gainers.

Rail Vikas surged more than 13 percent to lead the midcap winners, supported by heavy volumes. IRCTC, Indian Renewable Energy Development Agency, Hindustan Zinc, and Ola Electric also posted strong gains, while HUDCO, BHEL, Container Corp, NALCO and Bharat Dynamics advanced over 2 percent each.

Punjab National Bank shares slipped over 1 percent, topping the laggards in the Nifty Next 50 index. LTIMindtree, ICICI Lombard, IOC and Zydus Lifesciences also traded lower, though the declines remained modest in mid-day trade.

IRFC led the large-cap gainers, rallying more than 9 percent on strong volumes. Hindustan Zinc advanced over 2 percent, while Adani Energy Solutions gained about 2 percent. Mazagon Dock and REC also traded in the green with gains of over 1 percent each.

Shriram Finance remained the biggest drag on the index, slipping over 1.4 percent, followed by Sun Pharma and Tata Motors DVR (TMPV) with losses around 1–1.3 percent. Tech Mahindra, TCS and HCL Tech added to the pressure on IT shares, while Asian Paints, Bajaj Finserv and Maruti Suzuki also traded lower. SBI Life was down nearly 0.8 percent.

Titan, Bharat Electronics and Adani Enterprises led the gainers on the benchmark index in late morning trade, rising between 1–1.5 percent. NTPC, Hindalco and Cipla also posted modest gains, while ONGC and UltraTech Cement added around 0.4–0.5 percent each. Coal India and Apollo Hospitals rounded out the list of top performers.

Sectoral trends were mixed, with IT, autos, pharma and PSU banks under pressure, while metals, realty and energy indices managed to stay in the green. The FMCG index also inched up slightly after recent weakness.

Key NSE indices were mixed in late-morning trade. The Nifty 50 and Bank Nifty remained in the red, while midcaps and smallcaps continued to outperform modestly. The Nifty Next 50 also held in positive territory, indicating continued stock-specific strength outside the benchmark heavyweight names.

At 12:00 hrs IST, the Sensex was down 318.46 points or 0.37 percent at 85,090.24, and the Nifty was down 84.75 points or 0.32 percent at 26,057.35. About 1709 shares advanced, 1959 shares declined, and 155 shares unchanged.

RVNL, IRCTC, IRFC, Railtel among other Railway stock extended their run on Friday, rising up to 12 percent as the new railway fares kick in from today, December 26. The government’s revised passenger train fares came into effect from today. The move marks the second fare hike in 2025.

The shares of Tata Steel dropped more than 1 percent on December 26 after the company announced that its Dutch subsidiaries are facing proceedings over alleged damages caused by hazardous emissions in Netherlands. The shares of the Tata Group's flagship company dropped to Rs 167.82 apiece, emerging as the top losers on the Nifty 50 index.

Shriram Finance remained the biggest drag on the Nifty 50, falling nearly 1.5 percent in intraday trade. Tech Mahindra, Tata Steel and Sun Pharma also declined over 1 percent each, alongside selling pressure in large IT names like TCS and HCL Tech, which continued to weigh on the benchmarks.

Titan Company and Bharat Electronics led the intraday gainers on the Nifty 50, rising over 1 percent each. Coal India, NTPC and Adani Enterprises also traded higher, helping limit broader index losses despite continued pressure from financials and IT stocks.

Dilip Buildcon shares gained nearly 4 percent today after the company said it has received a Letter of Award for an EPC project worth around Rs 3,400 crore from Adani Road Transport. The stock was trading at Rs 483.50 in late morning trade.

Sectoral trends remained mixed through the morning. IT, autos and pharma continued to weigh on sentiment, while metals and energy names managed to stay in positive territory. PSU banks and FMCG were also under pressure, reflecting the broader weakness in defensives and rate-sensitives.

Key NSE indices were mixed in late morning trade. While the Nifty 50 and Bank Nifty stayed in the red, midcaps and smallcaps outperformed modestly, helping keep market breadth balanced. The Nifty Next 50 also traded slightly higher, indicating continued stock-specific action outside the benchmark names.

Positive contributions from Titan Company and Bharat Electronics helped limit the downside on the Nifty, with both stocks adding meaningfully to the index. Adani Enterprises, Eicher Motors and Infosys also provided incremental support, even as broader pressure from financials and IT weighed on overall sentiment.

Shriram Finance, Tata Steel and Sun Pharma were among the top losers on the Nifty, slipping around 1 percent each. IT majors Tech Mahindra and TCS also remained under pressure, contributing to the drag on benchmark indices.

Titan Company, Bharat Electronics and Adani Enterprises led the gainers on the Nifty, each rising around 1 percent in late morning trade. Coal India and NTPC also traded higher, offering some support to the benchmarks amid weakness in financials and IT stocks.

At 11:01 am, the Sensex was down 189.34 points or 0.22 percent at 85,219.36, and the Nifty was down 48.90 points or 0.19 percent at 26,093.20. About 1785 shares advanced, 1769 shares declined, and 159 shares unchanged.

A handful of Nifty 50 stocks bounced off intraday lows, signalling selective buying interest despite weaker benchmarks. Titan Company recovered over 1.5 percent from its day’s low, while Trent and Eicher Motors also clawed back close to 1 percent. Eternal posted a similar recovery, helping cushion broader index losses.

The shares of Swiggy and Zomato-parent Eternal dropped around 2 percent each on December 26 after delivery partners across platforms called for all-India strike on December 25 and December 31, citing various reasons. The shares of Swiggy fell to Rs 391.40 apiece, extending losses for the fourth consecutive session. Eternal shares meanwhile fell to a five-month-low of Rs 279.70 apiece in the morning of Friday.

Defence major Bharat Electronics traded over 1% higher, and was the best performing Nifty 50 stock. Outside the Nifty 50, shares of Paras Defence and Space Technologies, Mtar Technologies, and Mazagon Dock Shipbuilders were up 2–3% and the Nifty India Defence index was up 1%, higher than any other sectoral index.