Indian equity markets are expected to open on a positive note on Monday, with GIFT Nifty trading over 130 points higher, indicating a likely gap-up start for benchmark indices.
The final full trading week of 2025 is also a shortened one, with Thursday marked as a market holiday. As a result, the monthly derivatives expiry has been advanced to Wednesday, setting the stage for back-to-back expiry sessions and potentially higher volatility.
On Friday, the Nifty rebounded after four consecutive losing sessions, forming a higher high and higher low on the charts. However, the index continues to face resistance near the 20-day moving average around 26,000. Market participants expect the benchmark to remain range-bound between 25,700 on the downside and 26,100–26,200 on the upside, especially as year-end participation from foreign institutional investors tapers off.
Key Stocks and Sectors to Watch
Shriram Finance shares are likely to remain in focus following its $4.4 billion strategic investment agreement with Japan’s MUFG, the largest equity infusion ever for an Indian financial company. Multiple brokerages have raised price targets, citing stronger capital adequacy, lower funding costs, and improved long-term growth visibility.
Railway stocks are also expected to attract attention after a recent fare hike, while stocks such as GE Vernova T&D, RITES, Tata Chemicals, and Varun Beverages may see stock-specific action. Varun Beverages recently approved the acquisition of Twizza Proprietary Ltd. in South Africa in a deal valued at approximately ₹1,119 crore.
Meanwhile, four listed companies will see their lock-in periods expire today, which could add to stock-specific volatility.
Global and Macro Cues
Overnight, Wall Street ended higher, supported by renewed optimism around AI-linked stocks. US bond yields edged up, while Asian markets are expected to track global cues cautiously amid mixed economic signals from China.
With thinner volumes typical of the year-end period, analysts advise traders to remain selective and closely track stock-specific developments rather than broad market moves.
