Stock Market Today: Sensex Falls In Early Trade, Nifty Drops Too – Key Factors Behind The Fall

On the 26th of December 2025, BSE Sensex had a slight drop as it opened, which was the result of the traders being very cautious and doing profit booking right at the year’s end, plus the mixed signals coming in from the international markets. The indicator was approximately at 85,370, which was a 0.05% decline from the last close of 85,409.​

Market Opening

Indian markets were opened quietly after a holiday for Christmas. The Sensex began at 85,225, reached the highest point of 85,379, and the lowest point of 85,225 during the first part of the day, indicating the process of consolidation in the vicinity of the recent peaks. Nifty 50 followed the same pattern, dropping below 26,150 due to the pressure coming from the banking sector.​

Key Factors

• Weak Asian Cues: Global markets after Christmas gave mixed signals and thus set a cautious tone.

• GIFT Nifty Signal: Futures predict a quiet start, with Nifty at 26,121 (down 0.08%). 

• Profit Booking: There was a massive selling of shares in companies such as Reliance, ICICI Bank, Infosys, and Bajaj Finance.

• Year-End Caution: Highs were being consolidated while FII net selling and low volumes were present.

• Sector Drags: The banking and IT sectors were a drag on the market, with Bank Nifty down 0.15%.

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Key Performance Metrics

The 30-share index showed a TTM PE of 23.57 and P/B of 4.58, with a dividend yield of 1.12%. Sensex, on the contrary, rose by 8.84% in the past year, thanks to the strong inflows from domestic institutional investors, even though foreign investors were somewhat hesitant. Wider markets were flat, with midcaps showing a decline of 0.60%.​

Top Gainers and Losers

Reliance Industries was the major contributor to the index’s decline with a 77-point loss, accompanied by the losses of ICICI Bank and Infosys. Trent was at the top of the gainers’ list with a price of ₹4,289 (an increase of 28 points), followed by UltraTech Cement and Bajaj Finance. The sectors putting up resistance include FMCG and Pharma, while in auto-selective buying has emerged.​

Outlook and Strategy

Moderate trading volume was the case throughout the year-end period. Analysts are recommending specific stocks with strict stop-losses and supporting levels of 85,000 and resistance near 86,000. The Dow Jones (up 0.67%) was among global indices that provided a tinge of positivity, but the US jobless claims data is still a concern.