Indian equity markets closed lower on Friday, with benchmark indices Sensex and Nifty struggling to find clear direction amid muted year-end participation. Trading volumes remained thin as investors adopted a cautious approach, refraining from fresh bets ahead of upcoming corporate earnings announcements and important policy-related developments. The lack of strong cues and subdued global sentiment further contributed to the market’s inability to sustain any meaningful upside.
Investor attention is expected to turn toward defence stocks such as Bharat Electronics (BEL), Bharat Dynamics Ltd (BDL), and other related companies as the Defence Acquisition Council (DAC) is scheduled to meet later on Friday, December 26. The high-level meeting, chaired by Defence Minister Rajnath Singh, is likely to consider proposals related to the emergency procurement of critical weapons systems and military equipment. Market participants believe that favourable outcomes from the meeting could lead to faster approvals and fresh order inflows, providing near-term support to domestic defence manufacturers. Such developments would also reinforce the government’s broader focus on strengthening indigenous defence capabilities and boosting local manufacturing.
Sectoral performance during the session remained mixed, reflecting selective participation from investors. Buying interest was visible in metal stocks, real estate counters, and consumption-driven segments, supported by expectations of steady domestic demand and improving fundamentals. In contrast, sectors such as automobiles, information technology, banking, and healthcare continued to face selling pressure, weighing on overall market sentiment. The limited traction in traditionally defensive stocks further highlighted the prevailing cautious mood.
Overall, market conditions suggest a range-bound environment, with stock-specific and sector-specific movements dominating broader trends. Rotation appears to be favouring domestically oriented themes over export-linked sectors, as global uncertainties and subdued risk appetite continue to influence investment decisions. With liquidity expected to remain light toward the end of the year, investors are likely to stay selective, closely tracking earnings cues, policy developments, and macroeconomic indicators before committing to any decisive directional positions.
