Indian equity markets remained closed on Thursday for the Christmas holiday, following a subdued trading session on Wednesday that saw benchmark indices retreat amid thin volumes and foreign selling pressure. Market participants are now focusing on key factors that could influence trading when markets reopen on Friday.

Wednesday's Market Performance

The benchmark indices closed lower on Wednesday in pre-holiday trading, with foreign investors turning net sellers and a lack of fresh triggers keeping risk appetite subdued.

Losses in oil and gas, pharmaceutical, and IT stocks contributed to the benchmark decline as markets headed into the Christmas break. Trading volumes remained notably subdued throughout the session.

Market Activity and Sectoral Performance

Several stocks witnessed significant trading activity during Wednesday's session. JBM Auto led the most active stocks by turnover with ₹2,302 crores, followed by Hindustan Copper at ₹2,030 crores and Jupiter Wagons at ₹1,660 crores.

In volume terms, Vodafone Idea dominated with 60.65 crore shares traded, while Reliance Power and Jupiter Wagons also saw substantial trading activity.

Analyst Outlook and Technical View

Market analysts maintain a cautiously optimistic stance despite the recent consolidation. Vinod Nair from Geojit Investments noted that Indian equities moved largely sideways in the holiday-shortened week, with trading volumes remaining subdued as the year draws to a close. The Reserve Bank of India's recently announced liquidity initiatives, including open market operations and USD/INR buy-sell swaps, are expected to improve systemic liquidity and help stabilize currency volatility.

From a technical perspective, analysts continue to recommend a buy-on-dips approach as long as the Nifty maintains its prevailing uptrend. For fresh momentum, stronger participation from the banking index will be essential, with a decisive breakout above the 59,500 level likely to fuel the next leg of the up move.

Global Market Influence

Global factors are expected to influence Friday's trading session. US markets showed resilience with the S&P 500 and Dow Jones Industrial Average ending at record closing highs on Wednesday. The benchmark S&P 500 is positioned to notch a gain of nearly 18% for the year. Stronger-than-expected US GDP data points to economic resilience, although rising unemployment has tempered some optimism.

Market Sentiment and Stock Performance

Market sentiment remained bearish on Wednesday, with 2,346 stocks witnessing declines compared to 1,841 advances out of 4,332 stocks traded on the BSE. Over 115 stocks hit their 52-week highs, including notable names like Vedanta and Maruti Suzuki, while 102 stocks slipped to their 52-week lows.

Stocks showing strong buying interest included JBM Auto, Hindustan Copper, Manappuram Finance, and Reliance Power. Conversely, selling pressure was evident in stocks like Kajaria Ceramic, Navin Fluorine, and HFCL.

As markets prepare to resume trading on Friday, investors will be closely monitoring global developments, sectoral performance, and trading volumes for directional cues in the final trading sessions of the year.

Indian equity markets BSE and NSE remain closed for trading on Thursday, December 25, on account of the Christmas holiday. The country's largest non-agricultural commodity exchange, the Multi Commodity Exchange of India (MCX), and the largest agricultural bourse, the National Commodity & Derivatives Exchange (NCDX), are also shut for both trading sessions. All trading activity including equities, equity derivatives, securities lending and borrowing (SLBs), currency derivatives and commodities trading has been suspended.

Market and Banking Closure Details

This marks the final trading holiday for 2025, with stock markets having observed 14 trading holidays throughout the year. On the banking front, the Reserve Bank of India (RBI)-mandated holiday sees all public and private banks close branches nationwide. Trading operations and banking services will resume on Friday, December 26, across all major exchanges and financial institutions.

Global Market Impact

Major global markets have been on an early Christmas holiday since Wednesday. US markets took an early break and will resume trading on December 26. Markets in Germany were closed for the full day on December 24 and remain shut today. Several countries, including the UK, Germany, France, Australia, and Canada, will observe market holidays on December 26 as well, due to Boxing Day holiday. Some stock exchanges like Hong Kong Stock Exchange and London Stock Exchange Group will remain closed on December 26 for Boxing Day.

Recent Market Performance

Indian benchmark indices ended their three-session gaining streak on Wednesday amid selling pressure in IT and consumer stocks. The BSE Sensex eased 116.14 points or 0.14% to finish at 85,408.70, while the Nifty 50 declined 35.05 points or 0.13% to close at 26,142.10.

Smallcap index outperformed and settled with nearly 0.28% gains, while the midcap index shed 0.60%. The smallcap index has registered a fresh high in each of the last four sessions, according to Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities. On the sectoral front, most ended in the red, with Nifty Media emerging as the top sectoral gainer, followed by Nifty Realty. Nifty oil & gas, chemicals, and IT emerged as the top sectoral losers.

Complete 2026 Trading Holiday Calendar

Equity, equity derivatives and currency derivatives markets will remain closed for 15 days in 2026:

Notably, there is no separate mention of holiday for Diwali as it falls on a weekend (Sunday) in 2026.