Indian Markets Remain Subdued Amid Festive Slowdown and Low Volumes

Indian stock markets opened with mixed results as year-end festive inactivity led to low trading volumes. Experts highlight the absence of major market catalysts this week, while they look forward to upcoming positive triggers such as Union Budget 2026 and key corporate earnings announcements in January.

Indian equity benchmarks saw a mixed start on Monday, hindered by thin trading volumes typical of the year-end festive lull. The Nifty 50 index gained marginally, while the BSE Sensex opened lower, reflecting a broader trend of subdued market activity.

A market expert, Ajay Bagga, cited year-end vacations as a primary factor for reduced trading, with the December index expiry looming. Despite the current lull, he anticipates potential market volatility and highlights an anticipation of positive market sentiments driven by upcoming catalysts in January 2026.

Broader market indices like the Nifty Midcap 100 and sector-specific performances showed mixed results. Precious metals such as silver and gold dominated asset class performance. Meanwhile, analysts underscore the technical strength of Nifty amidst ongoing FII selling, with expectations of a bullish trend should key resistance levels be breached.

(With inputs from agencies.)