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MUMBAI, December 23, 2025 — After a high-octane rally that saw the Indian markets surge for two consecutive sessions, the bears found a narrow window to sneak in during Tuesday’s early trade. The benchmark indices, BSE Sensex and NSE Nifty 50, traded with a slight negative bias as investors paused to book profits in heavy-weight IT stocks, even as railway and metal counters continued to attract buying interest.
Morning Snapshot
As of midday trade, the market sentiment remains one of “cautious consolidation.”
- BSE Sensex: Trading at *85,450.91, down *116 points (0.14%).
- NSE Nifty 50: Hovering around *26,145.25, losing roughly *27 points (0.10%).
Despite the dip in the headline indices, the broader market remains resilient. The Nifty Midcap 100 and Smallcap 100 are outperforming their larger peers, gaining 0.15% and 0.34% respectively, suggesting that the “Santa Rally” is still alive in the pockets of the market.
Sectoral Tugs-of-War
The day’s narrative is being shaped by a stark contrast between old-guard tech and high-growth infrastructure:
- The IT Drag: Leading the retreat are IT giants TCS and Infosys. Sentiment in the sector dampened following reports that several major U.S. tech firms have advised H-1B visa holders to limit international travel, sparking fresh concerns about project timelines and onsite deployments.
- The Railway Revival: On the flip side, railway stocks are the stars of the session. RVNL, IRCTC, and Jupiter Wagons have jumped up to 8% as investors position themselves ahead of the 2026 Union Budget, betting on another massive capital expenditure push for the national carrier.
- Financial Resilience: Bajaj Finance and Power Grid are providing much-needed support to the Nifty, holding steady against the downward pressure from the tech sector.
Derivative Dynamics: The Expiry Factor
Market experts are attributing today’s choppy price action to the Nifty weekly expiry.
“We are seeing typical expiry-day volatility,” noted an analyst at a leading Mumbai brokerage. “With the indices breaking past key resistance levels yesterday, some cooling off was healthy. The immediate support for Nifty has now shifted to 26,100, and as long as we hold that, the medium-term trend remains bullish.”
Adding to the complexity, Sammaan Capital remains under the F&O trading ban after its open interest crossed the 95% market-wide position limit, forcing derivative traders to look elsewhere for tactical plays.
Global & Macro Context
The domestic pause comes despite a supportive global backdrop. Wall Street ended higher on Monday, and Asian peers like the Nikkei and Hang Seng are trading in the green today.
In the commodities space, Gold has surged to a fresh record high near $4,500 per ounce due to geopolitical tensions involving U.S. and Venezuela, while Brent Crude remains stable at $62 per barrel, providing some comfort to India’s inflation outlook.
What’s Next for Investors?
With a holiday-shortened week ahead (markets will be closed for Christmas on Thursday), volumes are expected to remain thin. Investors are now shifting their focus to upcoming U.S. GDP data and domestic manufacturing numbers for the next major trigger.
