Daijiworld Media network - Mumbai

Mumbai, Dec 26: Indian equity markets opened Friday, in a cautious and muted mood, with benchmark indices slipping from previous levels as thin year-end participation and a lack of fresh catalysts kept investors on the sidelines.

By mid-morning, the S&P BSE Sensex was down 403 points from its previous close, while the broader NSE Nifty 50 hovered just above the 26,050–26,100 zone. Weak momentum in heavyweight sectors such as information technology and financials contributed to the subdued trade.

Market participants noted unusually thin liquidity, a common pattern during the last week of December when institutional and foreign investors scale back ahead of the holiday season. With minimal economic data or corporate announcements, trading was dominated by technical moves and selective stock rotations rather than broad-based buying.

Foreign institutional investors (FIIs) continued to show net selling, particularly across key sectors, weighing on overall sentiment. Meanwhile, domestic investors rotated into select mid-cap and small-cap stocks, seeking value in lagging names.

Despite the broader softness, certain materials and commodity-linked shares showed resilience, supported by strong global commodity trends. A few mid-cap and sector-specific stocks in telecom and resource segments posted notable intraday gains.

In the currency market, the Indian rupee remained largely steady against the U.S. dollar, reflecting restrained global liquidity during the holiday week.

Analysts expect markets to remain consolidative and range-bound in the near term, with investors likely adopting a “buy on dips” approach around technical support levels. Early 2026 sentiment will depend on global cues and foreign fund flows as domestic triggers remain limited.