Stock markets open flat ahead of Christmas closing

Market Performance - Benchmark equity indices Sensex and Nifty experienced a rally in early trade, with Sensex rising by 115.8 points to 85,640.64 and Nifty increasing by 40.7 points to 26,217.85, driven by positive global market trends and domestic institutional investor buying [1] - Among the gainers in the Sensex firms were Bajaj Finance, NTPC, Trent, Bharat Electronics, Adani Ports, and Eternal [1] - Conversely, Tech Mahindra, Infosys, HCL Tech, and Sun Pharma were identified as laggards [2] Global Market Trends - Asian markets showed positive performance, with South Korea's Kospi, Japan's Nikkei 225, Shanghai's SSE Composite, and Hong Kong's Hang Seng indices all trading positively [2] - US markets also ended higher on the previous Tuesday [2] Domestic Economic Outlook - As 2025 approaches its end, the market is expected to enter 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 by domestic institutional investors (DIIs) are anticipated to provide resilience to the market, although foreign institutional investors (FIIs) may sell during rallies, limiting sharp breakouts [3] RBI Actions - 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 expected to positively impact credit growth and banking stocks [4] - The OMO purchases and dollar-rupee swap auctions will take place between December 29, 2025, and January 22, 2026, with the RBI committed to monitoring liquidity and market conditions [5] - This announcement follows a recent OMO purchase of ₹1 lakh crore and a $5 billion USD/INR swap auction [6] Investment Flows - On the previous Tuesday, foreign institutional investors offloaded equities worth ₹1,794.80 crore, while domestic institutional investors purchased equities worth ₹3,812.37 crore, indicating a divergence in investment behavior [6]