Indian stocks ended little changed on Tuesday, with both benchmark indices extending their losing streak as thin year-end trading and lingering concerns over foreign fund outflows kept investors cautious. However, sectoral moves provided support, with banking and metal stocks leading gains while broader market weakness persisted.

Market Performance Summary

The latest trading session saw minimal movement in the major indices, with both closing marginally lower despite selective sectoral strength.

The NSE Nifty 50's close at 25,938.85 kept the index above the 25,900 level throughout the session, while market breadth remained negative with an advance-decline ratio of 3:4.

Sectoral Performance Highlights

Banking stocks emerged as the standout performers, with the Nifty Bank index adding 239 points to close at 59,171. PSU banks led the gains amid buying interest ahead of quarterly earnings data. The banking sector's outperformance provided crucial support to the broader market during an otherwise subdued session.

Metal stocks delivered the strongest sectoral performance, with the Nifty Metal index gaining 2.00% in line with higher global metal prices. Midcap metal stocks showed particular strength, with several companies posting significant gains.

The auto sector also provided support, with the Nifty Auto index rising nearly 2.00% ahead of monthly wholesales data.

Individual Stock Movements

Several notable individual stock movements shaped the session's trading dynamics. Shriram Finance gained 3.00% following a rating upgrade after its deal with MUFG, while Hero MotoCorp snapped a three-day losing streak on expectations of healthy December sales.

On the negative side, Eternal emerged among the top Nifty losers, falling 2.00% after sources indicated the resignation of Blinkit's CFO. Hospital stocks came under pressure, with Max Healthcare declining more than 2.00%. IndiGo fell over 1.00% after announcing an increase in pilot allowance.

Market Outlook

The current session reflected the ongoing year-end trading dynamics, with thin volumes amplifying sectoral rotations. While the broader indices remained range-bound, selective strength in banking and metals demonstrated underlying resilience in specific sectors. The Nifty's ability to hold above 25,900 throughout the session suggests continued consolidation within established trading ranges as market participants navigate year-end positioning.

The Nifty Metal index has emerged as a formidable performer in 2025, delivering nearly 24% returns and showcasing remarkable consistency across individual stocks. While trailing the Nifty PSU Bank's approximately 26% gains in headline returns, metal stocks demonstrate superior breadth and reliability, making them the clear winner in terms of overall sector performance.

Metal Sector's Exceptional Strike Rate

The metal sector's strength becomes evident when examining individual stock performance. An impressive 93% of metal stocks have generated positive returns, with 14 out of 15 constituents in the green. This compares favorably to PSU banks, where only 67% of stocks (8 out of 12) have delivered gains.

Adani Enterprises stands as the sole laggard in the metal index with a modest 6% decline. In stark contrast, all four underperformers in the PSU bank index have suffered steep double-digit losses ranging from 31% to 44%, including Punjab & Sind Bank, Indian Overseas Bank, UCO Bank, and Central Bank of India.

Standout Metal Performers Drive Sector Gains

Hindustan Copper emerged as the sector's star performer, delivering a remarkable 90% return driven by soaring copper prices. The company has consistently hit fresh highs throughout the year, maintaining elevated investor interest. Hindalco Industries followed with a solid 40% uptick, benefiting from both copper and aluminum price rallies, with copper advancing over 50% and aluminum gaining over 20% during the year.

Steelmakers also participated actively in the rally, with JSW Steel rising approximately 20%, while Lloyds Metals and NMDC both gained 17%, and SAIL climbed 16%. Even more modest performers like Jindal Stainless (8%), Jindal Steel & Power (7%), and Welspun Corp (2%) contributed to the sector's broad-based strength.

PSU Banks Show Mixed Performance

Public sector banks delivered largely positive but varied performance. Canara Bank led the pack with robust 50% gains, reflecting strong earnings momentum and improved asset quality. Indian Bank followed closely with 43% returns, while Bank of India advanced 36%.

State Bank of India provided sector stability with 21% gains, while Punjab National Bank and Bank of Baroda posted more modest increases of 19% and 17% respectively. Bank of Maharashtra underperformed with only 10% gains, highlighting the significant performance divergence within the sector.

December Performance Highlights Sector Shift

December performance data reveals a notable shift in sectoral momentum. The Nifty Metal index emerged as the best-performing sector with approximately 5% returns, while the Nifty PSU Bank declined nearly 3% during the same period. This sharp monthly divergence has significantly narrowed PSU banking stocks' earlier lead over the metal sector.

The Nifty Metal's 2025 performance represents its strongest showing in four years, with peak monthly returns of 11% in March, followed by 10% in September and 7% in May. Despite experiencing negative returns on six occasions during the year, the sector's overall resilience and consistency have distinguished it from other market segments.