Pre-Market Nifty/Sensex Analysis Today, Dec 31: Nifty, Sensex Likely to Open Flat on Last Day Of Year 2025; FII Outflow Persists for 6th Consecutive Day

Most Asian markets, including Japan, South Korea, and Thailand, are closed today on account of New Year's Eve.

Institutional Flows – FIIs and DIIs

On Tuesday, December 30, Foreign Institutional Investors (FIIs) were net sellers, selling equities worth ₹3,844.02 crore, for the 6th consecutive trading session. Domestic Institutional Investors (DIIs) continued their positive stance, buying equities worth ₹6,159.81 crore, marking their 47th consecutive session of net inflows.

Foreign Institutional Investors (FIIs) were net sellers in 8 out of the 12 months of calendar year 2025, while Domestic Institutional Investors (DIIs) remained net buyers throughout the entire year.

Tuesday's Market Action

Indian equity benchmarks ended nearly flat on Tuesday, December 30, amid muted global cues and thin year-end trading that kept investor sentiment subdued. 

The Nifty 50 slipped marginally by 3.25 points to close at 25,938.85, while the Sensex eased 20.46 points to 84,675.08. In contrast, Bank Nifty outperformed, gaining 0.41% to close above the 59,000 mark. Ongoing foreign fund outflows and broad-based profit booking weighed on markets, with the Nifty down nearly 0.9% over the last three sessions and the Sensex falling over 1% across four sessions.

Sectorally, 5 of the 11 indices ended higher, led by Nifty Metal, which rose 2.03%, while PSU Bank and Auto stocks gained over 1%. Realty and IT stocks lagged, declining 0.84% and 0.74%, respectively. 

The broader markets underperformed, with the Nifty Midcap 100 and Smallcap 100 indices slipping 0.15% and 0.28%, respectively.

Wall Street On Tuesday

US markets ended Tuesday’s volatile session slightly in the red, with both the S&P 500 and the Nasdaq slipping marginally. Strength in communication services shares wasn’t enough to counter losses in technology and financial stocks, while the weakness in financials also dragged the Dow lower.

US equity markets finished the session modestly lower, with the Dow Jones Industrial Average closing at 48,367.06, down 94.87 points or 0.20%, while the S&P 500 slipped 9.50 points to end at 6,896.24, a decline of 0.14%. The Nasdaq Composite also edged lower, falling 55.27 points, or 0.24%, to settle at 23,419.08.

Fed Signals Pause After December Rate Cut

According to the minutes of its recent two-day meeting, the US Federal Reserve decided to lower interest rates in December only after extensive discussion over the potential risks to the American economy. The central bank is scheduled to meet again on January 27–28, and market participants largely anticipate that policy rates will remain steady at that time.

US Dollar

The US dollar strengthened on Tuesday, extending gains after the Federal Reserve released minutes from its December policy meeting. Investors are closely studying the commentary for clues on how interest rates may evolve in the coming months. 

Despite the short-term uptick, the dollar is heading toward its weakest annual showing since 2017, having lost nearly 10% over the year. The dollar index, which tracks the currency against a basket of major peers, rose 0.19% to 98.19. Overall, the dollar index is down about 9.5% for the year, marking its sharpest decline in eight years.

Gold and Silver Prices

Gold and silver prices eased on Wednesday, but both metals remain on track for historic yearly achievements as 2025 draws to a close. Other precious metals also recorded strong annual performances despite the latest pullback.

Spot gold slipped 0.3% to $4,334.20 per ounce by early Asian trading, after touching an all-time high of $4,549.71 last Friday. February gold futures in the US fell 1% to $4,346.50 per ounce. Silver declined 1.6% to $75.09.

Oil Prices

Oil prices are on course for their steepest yearly drop since the pandemic-hit year of 2020, as persistent concerns over excess supply continue to pressure the market and are likely to influence sentiment into the new year.

US benchmark West Texas Intermediate slipped below $58 per barrel, set for a fifth consecutive monthly decline and down close to 20% in 2025. Brent crude for March delivery settled above $61 per barrel. In the near term, market attention remains on an upcoming OPEC meeting, a bearish industry report from the US, and ongoing geopolitical developments.

Crude prices have struggled throughout the year as output increased from OPEC and other major producers, while global demand growth failed to keep pace, reinforcing fears of a prolonged supply glut.

Disclaimer: The article is for informational purposes only and not investment advice.