CHENNAI: Indian equity markets were trading with a mild positive bias by midday on Wednesday (December 31), the final trading session of the calendar year, as selective buying in metal, energy and mid-cap stocks helped benchmarks recover from early volatility. Trading volumes remained thin amid year-end positioning, but domestic institutional support and policy-driven sectoral cues provided a measure of stability.
At around 2.20 PM IST, the BSE Sensex was trading higher by about 647 points at 85,322, while the NSE Nifty 50 was up roughly 222 points at 26,161, reflecting significant gains amid choppy intraday movement.
The benchmarks edged higher after a subdued start, with gains fluctuating as investors remained cautious about global cues and recent foreign fund outflows. Market sentiment was shaped less by broad-based risk appetite and more by stock- and sector-specific triggers, reflecting a consolidation phase after the recent correction. While frontline indices held modest gains, intraday movement suggested hesitation to build aggressive long positions ahead of the year close.
Metal and steel stocks were among the strongest performers in midday trade, driven by optimism following government measures aimed at protecting domestic producers from cheaper imports. Shares of major steelmakers and allied metal companies saw renewed buying interest, lifting the broader metal index and contributing meaningfully to benchmark stability. The move also triggered spillover interest in mining and commodity-linked stocks, which had underperformed in earlier sessions.
Energy stocks, particularly oil marketing companies, were also trading firm, supported by expectations of stable margins and improving fundamentals. The sector’s defensive-cyclical blend attracted investors seeking relative safety amid uncertain global conditions. In contrast, information technology stocks showed mixed trends, reflecting lingering concerns over global demand and currency volatility.
The broader market outperformed headline indices, with mid-cap and small-cap stocks posting relatively stronger gains. This improvement in market breadth indicated selective risk-taking and bargain hunting after recent declines, though participation remained uneven. Investors appeared inclined toward quality names with visible earnings prospects rather than speculative positions.
From a macro perspective, currency weakness and mixed cues from global markets continued to cap upside. Persistent foreign institutional selling over recent sessions remained a key overhang, even as domestic institutional investors stepped in to cushion declines. Asian markets were largely range-bound due to holiday-thinned volumes, limiting directional cues for Indian equities.
Overall, midday trade on the last day of 2025 reflected a cautious but constructive undertone. While strong policy cues and sectoral rotation helped markets stay in the green, the absence of strong global triggers and ongoing concerns about capital flows kept gains modest. Investors appeared focused on closing the year on a stable note rather than chasing sharp moves, setting the stage for a measured start to the new trading year.