The Indian equity markets concluded the final trading session of 2025 on a positive note, with benchmark indices closing higher on Wednesday, December 31, 2025. The rally was driven by healthy buying activity across various market segments, providing an optimistic finish to the year.
Market Performance: A Strong Year-End Finish
The Nifty 50 index gained 0.74% to close at 26,129.60 points, a significant rise from its previous close of 25,938.85 points. Meanwhile, the BSE Sensex advanced by 0.64%, settling at 85,220.60 points compared to 84,675.08 points at the end of the prior session, as per official stock exchange data.
Expert Outlook for 2026: Steady Growth on the Horizon
Siddhartha Khemka, Head of Research for Wealth Management at Motilal Oswal Financial Services, shared his perspective on the market trajectory. He anticipates that the Indian stock market will deliver steady growth in the new year, 2026.
"After a phase of consolidation in 2025, we expect markets to deliver steady growth in 2026," Khemka stated. He attributed this positive forecast to a recovery in corporate earnings, a gradual revival in private sector investment, and continued support from government policy measures.
For the immediate term, however, he expects markets to move sideways with selective buying interest. Trading volumes are likely to remain thin due to the New Year holidays observed across global markets. "As we move into 2026, improving earnings visibility, supportive policy measures and the potential turnaround in foreign institutional investor flows create a favourable backdrop for Indian equities," Khemka added.
Commodity Market Check: Gold Dips, Silver Edges Up
In the commodities market, gold futures for the February 2026 contract on the Multi-Commodity Exchange (MCX) declined by 0.88%. Prices fell by ₹1,208 to ₹135,458 per 10 grams from the previous close of ₹136,666 per 10 grams.
In contrast, silver prices witnessed a marginal increase of 0.09%. The precious metal was up by ₹219 per kg, closing at ₹2,35,920 per kilogram compared to ₹235,701 per kilogram in the last session.
Commenting on the silver trend, Ponmudi R, CEO of Enrich Money, noted that while there is near-term pressure, the longer-term bullish outlook remains intact. "Prices are finding initial support near the rising channel and the 20-day EMA around ₹2,08,994, with deeper declines continuing to attract accumulation interest," he explained. He suggested that a sustained rebound above ₹2,36,000 could propel prices towards ₹2,45,000 to ₹2,60,000 in the medium term, advocating for accumulation on price dips.
Analysts' Stock Recommendations for Traders
Several market analysts have identified specific stocks that present potential trading opportunities based on technical charts.
Sumeet Bagadia of Choice Broking recommended two stocks:
1. L&T Finance Ltd (LTF): Suggested buy zone at ₹316 with a target price of ₹338 and a stop loss at ₹305. The stock recently broke out from a consolidation phase to hit an all-time high.
2. Bharat Petroleum Corporation Ltd (BPCL): Recommended buy at ₹384, target ₹412, stop loss ₹370. The stock shows a rounding bottom pattern breakout on daily charts.
Ganesh Dongre of Anand Rathi suggested three stocks for consideration:
3. Union Bank of India (UNIONBANK): Buy at ₹154, target ₹162, stop loss ₹150. The stock shows a bullish pattern with support at ₹150.
4. BSE Limited (BSE): Buy at ₹2,630, target ₹2,750, stop loss ₹2,570. The technical setup indicates potential for an upward move.
5. Bharti Airtel Ltd (BHARTIARTL): Buy at ₹2,108, target ₹2,170, stop loss ₹2,070. The stock exhibits a continued bullish pattern.
Shiju Koothupalakkal of Prabhudas Lilladher also provided three stock picks:
6. Cemindia Projects Ltd (CEMPRO): Buy at ₹788, target ₹830, stop loss ₹760. The stock shows a triple bottom pattern revival on daily charts.
7. Tourism Finance Corporation of India Ltd (TFCILTD): Buy at ₹65.15, target ₹70, stop loss ₹63. A triple bottom formation with increased volume participation is noted.
8. IOL Chemicals & Pharmaceuticals Ltd (IOLCP): Buy at ₹82.25, target ₹89, stop loss ₹80. The stock shows signs of bottoming out with a double bottom formation.
Disclaimer: The views and recommendations expressed above are those of individual analysts or broking firms. They are for educational purposes only. Investors are strongly advised to consult with certified experts before making any investment decisions, as market conditions are dynamic and individual circumstances may vary.
