Nifty, Sensex open flat in thin year-end volumes, experts flag volatility due to index expiry

Mumbai (Maharashtra) [India], December 29 (ANI): Indian equity benchmarks opened on a mixed note on Monday amid thin year-end volumes, with markets expected to remain flat to negative due to the absence of major triggers and widespread holiday-led inactivity.
The Nifty 50 index opened at 26,063.35, registering a gain of 21.05 points or 0.08 per cent, while the BSE Sensex began the session at 85,004.75, down 36.70 points or 0.04 per cent.
Market experts said trading activity is subdued as the year draws to a close, with most participants away on vacation.
Ajay Bagga, Banking and Market Expert, told ANI, "The last three days of an eventful year are here. Volumes are down as most of the working humanity is on year-end vacations. Indian markets will see the December index expiry for two key indices on Tuesday, so there could be some volatility, even though the India VIX has stayed at historically low levels, in the single digits. The overbought markets have become neutral to oversold markets, a good set up for a positive move at some time. For now, we expect low volumes and lack of any catalysts this week to lead to flat to negative markets."
He added, "The triple positive catalysts of the Union Budget 2026, Q3 FY2026 corporate earnings recovery and progress on the US-India trade deal will start helping Indian markets later in January 2026. For this week, low volumes, so profit booking and low propensity to take fresh positions at a universal vacation time will be the key markets for the stock markets."
In the broader market on the National Stock Exchange, the Nifty Midcap 100 was down 0.07 per cent, while the Nifty Smallcap 100 traded marginally higher with a gain of 0.06 per cent.
Sectoral performance on the NSE was mixed. Nifty Auto was slightly higher with a gain of 0.02 per cent, while Nifty IT, FMCG, Pharma, and PSU Bank indices traded in the red. Nifty Metal outperformed other sectors, rising 0.65 per cent.
The traditional year-end 'Santa rally' is likely to be absent this year. The precious metals and copper are doing the heavy lifting across asset classes.
Silver, which briefly touched USD 80 in Asian trading, has moved to the third position across assets, behind only gold and Nvidia. Gold, after hitting another record high last week, was trading flat on Monday morning.
Sunil Gurjar, SEBI-registered analyst and Founder of Alphamojo Financial Services, said, "As the year draws to a close, the Nifty is hovering near its All-Time High (ATH), though heavy FII selling continues to weaken the market. If the index breaches the 26,250 level, we could see a strong bullish rally. While the Nifty has gained only about 10 per cent this year, it is technically sound--trading above all key moving averages--and strong relative strength in specific sectors suggests sustained buyer interest".
With limited economic data flow, low volumes, festive cheer, and strong performance from precious metals and copper, experts expect markets to wind down 2025 on a flat note and begin 2026 with muted momentum. (ANI)