Nifty bids adieu to 2025 on a high note, rises 10% for year, Sensex 9%; market outlook 2026

Domestic equity benchmarks Sensex and Nifty ended Wednesday’s session on a firmer note, snapping their recent losing streak in the final trading session of the year, as buying in metal, energy and banking stocks supported overall market sentiment.

The BSE Sensex rose nearly 9% during the year, while the NSE Nifty50 posted gains of 10%. In contrast, the BSE Midcap index remained largely muted, advancing about 1% over the year. 

Broader markets delivered a varied performance, with the BSE Smallcap index declining 6.62%, the BSE 100 gaining 8.65%, and the BSE 500 climbing 6% in 2025.

At the close, the Sensex snapped its five-session losing streak, rising 545.52 points, or 0.64 per cent, to settle at 85,220.60. The Nifty also broke its four-day decline, advancing 190.75 points, or 0.74 per cent, to end at 26,129.60.

Tata Steel emerged as top gainer on the Sensex, rising 2.45% to Rs 180.05. Kotak Mahindra Bank followed with a 2.17% gain, while Reliance Industries (RIL), Axis Bank, Titan, and Trent climbed 1.86%, 1.82%, 1.81% and 1.65%, respectively. 

Five stocks, namely Reliance Indsutries (RIL), Kotak Mahindra Bank, Axis Bank, Mahindra & Mahindra (M&M) and State Bank of India (SBI), contributed heavily to the Sensex’s surge.      

In the Sensex index, shares of Titan Company touched a fresh 52-week high of Rs 4,061.95.

Among sectoral indices, the BSE Energy index surged 2.28% to close at 12,228.60, while the BSE Metal gained 1.51% to settle at 36,811.73.

Overall, of the 4,374 actively traded BSE stocks, 2,789 closed higher, 1,421 declined, and 164 remained unchanged. During the session, 126 stocks touched their 52-week highs, while 145 fell to 52-week lows. Meanwhile, 206 scrips hit their upper circuits, and 127 were locked in lower circuits.

Meanwhile, brokerage firm Geojit Financial Services has pegged a base case target of 29,150 for the Nifty50 index by December 2026, implying a potential upside of nearly 12 per cent from current levels. In its latest market strategy 2026 note, the brokerage highlighted that the market’s trajectory will be underpinned by a turnaround in the domestic earnings cycle, a pick-up in private capex, and a moderation in global risk factors. 

Geojit values the benchmark index at a one-year forward price-to-earnings (P/E) multiple of 20.5x for its base case, while also outlining a ‘peak case’ scenario where the Nifty could scale up to 31,330 if valuations expand to 22x. The firm noted that the domestic economy is expected to benefit from benign inflation and an improving demand environment, further supported by fiscal and monetary measures.

Ajit Mishra, SVP, Research, Religare Broking Ltd – said, “From a technical standpoint, the Nifty has once again approached the upper end of its prevailing consolidation range near 26,200. A decisive breakout above this level could trigger the next leg of upward momentum, while failure to do so may lead to renewed profit-taking. We maintain a positive yet cautious outlook on the index and recommend a sector-specific approach, with a preference for banking, auto and metal stocks, while remaining selective in other sectors.”