Market sees mixed trends as domestic shares weaken despite global gains; DIIs continue supportive buying
Mumbai (Economy India): Indian equity benchmarks opened lower on Friday, with the BSE Sensex sliding more than 100 points to trade near 85,250, while the Nifty 50 index dipped around 30 points to trade close to 26,100 in early deals. Selling pressure was visible in banking and media segments, even as select sectors showed resilience.
Market Trend: Mixed Domestic Sentiment
At the time of reporting, among the 30 Sensex constituents:
- 16 stocks were trading higher
- 14 stocks were trading lower
Sector-wise movement showed contrasting trends:
- Banking, Auto and IT stocks witnessed some uptick
- Media and select banking names came under selling pressure
Analysts attribute the weakness in key indices to investor caution ahead of year-end portfolio adjustments and profit booking in heavyweight stocks.
Global Markets Show Strength
While domestic markets were subdued, global equities remained predominantly positive:
Asian Markets (Friday):
- South Korea’s KOSPI rose by 0.70% to 4,137
- Japan’s Nikkei 225 climbed 0.96% to 50,893
- China’s Shanghai Composite advanced 0.19% to 3,952
- Hong Kong’s Hang Seng was closed for the trading session
US Markets (Thursday Revise Close):
- Dow Jones Industrial Average ended up 0.60% at 48,731
- Nasdaq Composite added 0.22%
- S&P 500 gained **0.32%
The upbeat global cues contrast the cautious tone seen in Indian equities, suggesting localized factors at play.
FII & DII Activity: Domestic Support Continues
Data on institutional flow patterns reveal divergent activity between foreign and domestic investors:
On December 24:
- Foreign Institutional Investors (FIIs) were net sellers, offloading shares worth ₹1,721 crore
- Domestic Institutional Investors (DIIs) continued to support markets with net purchases of ₹2,381 crore
Cumulative Flows (Up to Dec 24):
- FIIs have sold equities worth ₹23,830 crore in December so far
- DIIs have bought shares worth ₹62,284 crore, providing a stabilizing influence
By comparison, in November 2025:
- FIIs recorded net equity sales of ₹17,500.31 crore
- DIIs were net buyers to the tune of ₹77,083.78 crore
Market participants view sustained DII buying as a key buffer against sharper declines, helping to absorb foreign selling pressure.
Recent Market Movement
The broader market had shown strength earlier this week. On December 24:
- Sensex closed up by 116 points at 85,409
- Nifty 50 ended 35 points higher at 26,142
However, volatility has re-emerged as investors adjust positions following the Christmas trading holiday on December 25.
On December 24, among the 30 Sensex stocks:
- 17 declined
- 13 advanced
Meanwhile, Nifty 50 saw 30 out of 50 stocks in the red, with IT and banking names under pressure.
Economy India View
The latest market action underscores a cautious session for Indian equities, amid mixed global cues and sector-specific selling. Though global markets remain buoyant, domestic investors are weighing year-end positioning, earnings prospects, and macroeconomic signals before committing fresh capital.
Foreign selling continues to test market resilience, but steady DII support could temper deeper downturns. Analysts expect volatility to persist as traders navigate shifting sentiment, crude prices, and macro indicators.
(Economy India)
