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Below the Quote on Daily Market Commentary for 29th December 2025 By Siddhartha Khemka, Motilal Oswal Financial Services Ltd

Indian equity markets ended lower in a subdued, low-volume session, with the Nifty closing down 0.4% as sustained foreign institutional investor outflows, lack of triggers and year-end caution weighed on sentiment. Broader markets underperformed, with the Nifty Midcap 100 declining 0.5% and the Nifty Smallcap 100 falling 0.7%. Most sectors were under pressure during the session. Nifty IT emerged as the top loser, down -0.8%, extending profit-taking for a second consecutive day, while Nifty Realty followed with a decline of -0.7%. On the flip side, Nifty Media gained +0.9% and Nifty FMCG was up +0.1%. Technology stocks remained weak amid caution ahead of year-end budget outlooks and client spending visibility, with profit-booking evident across the sector. Metal stocks continued to display strong momentum, with the Nifty Metal index touching a fresh high of 10,983 during the session. However, profit-taking was visible in precious metals, as silver, after climbing to a new peak above the USD 80 per ounce mark, corrected by over 2% during the day and Nifty Metal ending 1.8% lower from its day’s high. On the macro front, investors remained cautious ahead of domestic industrial and manufacturing production data for November due on December 29, while China’s manufacturing and non-manufacturing PMI data & US FOMC meeting minutes will be released tomorrow. Overall, Indian equities are expected to trade in a narrow range in the near term, tracking macro indicators and institutional flows.

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