Sensex, Nifty Face Weak Start on Low Volumes; Gold and Silver Cool Off

Pre-Market Update at 7:44 AM: Indian equity benchmarks Sensex and Nifty 50 are expected to open Tuesday’s session, December 30, on a weak note, potentially extending their decline to a fifth consecutive day. Market sentiment remains cautious amid mixed global cues and thin year-end trading volumes. Early signals from Gift Nifty indicate a subdued start, with the index hovering around 25,957, down 29 points or 0.11 per cent from the previous close of Nifty futures.

Asian markets paused after a seven-session rally, tracking technology-led weakness on Wall Street. Precious metals traded in a narrow range after pulling back from record highs, while overall trading activity remained light due to the year-end holiday period.

India’s industrial production rebounded sharply in November 2025, with the Index of Industrial Production rising 6.7 per cent year on year, marking a two-year high. This followed a muted 0.4 per cent growth in October due to festive disruptions. Manufacturing led the recovery with an 8 per cent expansion, supported by gains in metals, pharmaceuticals and automobiles. Mining output rose 5.4 per cent, while electricity generation declined marginally. Strength across capital goods, infrastructure and consumer segments pointed to improving industrial momentum.

Foreign Institutional Investors remained net sellers for the fifth consecutive session on Monday, December 29, selling equities worth Rs 2,759.89 crore. Domestic Institutional Investors continued to provide support, buying equities worth Rs 2,643.85 crore and extending their buying streak to 46 straight sessions.

Indian equity markets ended Monday’s session in negative territory as muted year-end participation and persistent foreign fund outflows weighed on sentiment. The Nifty 50 declined 100 points, or 0.38 per cent, to close at 25,942, while the Sensex fell 346 points, or 0.41 per cent, to 84,696. Markets remained range-bound, with December’s average daily trading volume in Nifty 50 stocks falling to 250 million shares from 300 million in November, highlighting thin liquidity and a lack of fresh triggers.

Sector-wise, only three of the 11 indices closed higher. Nifty Media gained 0.93 per cent, followed by marginal gains in FMCG stocks. Nifty IT declined 0.75 per cent, extending its losing streak to four sessions. Broader markets also remained under pressure, with the Nifty Midcap 100 and Smallcap 100 indices falling 0.52 per cent and 0.72 per cent, respectively.

U.S. equities ended slightly lower on Monday in subdued, holiday-thinned trading as investors entered the final week of the year. With only two sessions left before markets close for New Year’s Day, the modest pullback did little to overshadow a strong annual performance. The S&P 500 slipped 24.20 points, or 0.3 per cent, to 6,905.74 but remained up over 17 per cent in 2025 and on track for its eighth consecutive monthly gain. The Dow Jones Industrial Average fell 249.04 points, or 0.5 per cent, to 48,461.93, while the Nasdaq Composite declined 118.75 points, or 0.5 per cent, to 23,474.35.

Silver prices steadied after witnessing their steepest one-day decline in more than five years as investors booked profits following a strong rally. Despite a 9 per cent fall in the previous session, silver remained above USD 71 per ounce. Gold traded largely flat near USD 4,340 per ounce after dropping 4.4 per cent earlier, with selling pressure emerging as prices appeared technically overextended amid thin holiday liquidity.

In early Asian trade, spot silver slipped 0.5 per cent to USD 71.74 per ounce after touching a record high of USD 84.01 in the prior session. Gold edged up 0.1 per cent to USD 4,336.86, while platinum and palladium extended losses following sharp double-digit declines on Monday.

Crude oil prices held on to most of their recent gains as geopolitical tensions offset concerns over excess supply. West Texas Intermediate hovered near USD 58 per barrel after rising 2.4 per cent on Monday, while Brent crude traded just below USD 62. Supply concerns intensified after Venezuela began shutting oil wells in a region holding the world’s largest crude reserves amid a U.S. blockade.

Geopolitical risks remained elevated after U.S. President Donald Trump said the United States had carried out a strike on a facility in the country. Separately, Trump’s efforts to broker an end to the Ukraine war faced setbacks after Russian President Vladimir Putin said he was reassessing negotiations following an alleged drone incident. Trump also warned that the U.S. would strike Iran again if it attempted to revive its nuclear programme.

For today, Sammaan Capital will remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.