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Sensex, Nifty Slip as Year-End Rally Fades, RBI Liquidity Steps in Focus

Profit-taking in thin holiday trade reflected persistent foreign outflows alongside rupee weakness.

Overview

  • Benchmarks closed lower on Dec. 26, with the Sensex down 367 points to 85,041.45 and the Nifty 50 at 26,042.30, off about 100 points.
  • Selling was led by profit-booking as FPIs remained net sellers by ₹1,721 crore on the prior session, while DIIs bought ₹2,381 crore, per provisional NSE data.
  • The rupee opened softer near 89.86 per dollar, adding pressure as investors reduced risk in a holiday-shortened week with scarce fresh domestic cues.
  • Sectorally, IT, financials and oil & gas lagged, while pockets such as media, metals and select rail/realty names showed relative strength.
  • The RBI flagged near-term liquidity support via ₹2 lakh crore of OMO purchases and a $10 billion buy/sell swap auction scheduled from Dec. 29 to Jan. 22, with 2026 catalysts seen in the Union Budget, trade talks and the earnings season.