Indian Equities Poised for a Muted Higher Open as Year-End Nears

As trading draws to a close on the final day of 2025, India’s primary benchmark indices appear set for a subdued session, with expectations tilted toward a higher or range-bound opening. The thin trading environment—courtesy of numerous Asian markets shutting down for the new year and widespread trader disengagement—is anticipated to keep price movements confined within narrow bands.

Corporate Developments Provide Limited Support

In the corporate sphere, two significant developments emerged. Bharat Forge clinched a substantial defense order valued at Rs 1,661.9 crore from India’s Ministry of Defence, supplying CQB Carbines to the armed forces. Separately, Power Grid Corporation secured a contract to develop standalone battery energy storage systems in Andhra Pradesh, following a competitive selection process for renewable energy infrastructure expansion.

Tuesday’s Muted Market Action

The previous trading session reflected the broader sentiment of caution. Sensex closed with marginal losses of 20.46 points, representing a 0.02% decline to finish at 84,675.08. The index oscillated between 84,470.94 and 84,806.99 throughout the session, rarely straying from neutral territory. Nifty50 mirrored this hesitancy, slipping just 3.25 points or 0.01% to settle at 25,938.85, with its intraday range spanning 25,878.00 to 25,976.75.

Sector-wise, automobile, metals, and PSU banking stocks outperformed, while real estate, consumer goods, and IT stocks underperformed in the sluggish market environment.

Global Markets Show Weakness

Across the Atlantic, directional conviction remained absent. The Dow declined 0.2% to 48,367.06, Nasdaq retreated 0.2% to 23,419.08, and the S&P 500 edged down 0.1% to 6,896.24. The Federal Reserve’s latest policy minutes highlighted divergent perspectives: while most officials view additional rate cuts as potentially justified if inflation moderates as anticipated, some participants advocate maintaining rates steady for an extended period following December’s quarter-point reduction. This mixed outlook underscores ongoing uncertainty in monetary policy direction.

European bourses, by contrast, ended Thursday on a firmer note, driven by strength in banking, defense, and mining stocks, though this provided limited spillover support to Asian equities, including higher-priced Indian shares tracking softer sentiment.