Stock markets trade higher in early deals

Market Performance - Benchmark equity indices Sensex and Nifty experienced a rally in early trade on December 24, 2025, influenced by positive global market trends and consistent buying from domestic institutional investors [1] - The BSE Sensex rose by 115.8 points to reach 85,640.64, while the NSE Nifty increased by 40.7 points to 26,217.85 [1] - Key gainers in the Sensex included Bajaj Finance, NTPC, Trent, Bharat Electronics, Adani Ports, and Eternal [1] Sector Performance - Tech Mahindra, Infosys, HCL Tech, and Sun Pharma were identified as laggards in the market [2] - Asian markets, including South Korea's Kospi, Japan's Nikkei 225, Shanghai's SSE Composite, and Hong Kong's Hang Seng, were trading positively [2] - U.S. markets also ended higher on December 23, 2025 [2] Market Outlook - As 2025 concludes, the market is perceived to be entering a consolidation phase with an upward bias, supported by strong domestic macros and positive earnings growth expectations for Q3 and Q4 of FY26 and FY27 [3] - Sustained domestic inflows and consistent buying from domestic institutional investors are expected to provide resilience to the market, although foreign institutional investors may sell during rallies, limiting sharp breakouts [3] Monetary Policy Impact - The Reserve Bank of India (RBI) announced an additional Open Market Operation (OMO) of ₹2 lakh crore to enhance liquidity and reduce yields, which is seen as positive for credit growth and banking stocks [4] - The RBI will conduct OMO purchases and dollar-rupee swap auctions between December 29, 2025, and January 22, 2026 [5] - This decision follows a previous OMO purchase of ₹1 lakh crore and a $5 billion USD/INR swap auction [6] Institutional Investor Activity - On December 23, 2025, foreign institutional investors offloaded equities worth ₹1,794.80 crore, while domestic institutional investors purchased equities worth ₹3,812.37 crore [6]