TLDR
Market Recap: December 29, 2025
On December 29, Indian equities extended their year-end drift, closing lower in thin trade as steady foreign outflows and IT, auto weakness outweighed strength in metals. Sensex ended at 84,695.54 (-345.91, -0.41%) and Nifty 50 at 25,942.10 (-100.20, -0.38%); broader markets were softer, while volatility ticked up with India VIX at 9.72 (+0.57, +6.23%). Sector leadership stayed narrow, with metals supported by global cues and rate cut bets, while investors kept risk tight ahead of early January macro prints and RBI liquidity actions.
Key Drivers :
Year-end flows still heavy: Persistent foreign selling kept participation low and rallies shallow into the close.
Metals held the line: Metal stocks outperformed on optimism about China demand and easing rate expectations globally.
Volatility woke up: The India VIX jumped over 6% as traders hedged into the month-end and amid event risk.
Today’s Top Stories:
RBI liquidity push: OMO bond buys continue, with key auctions on Jan 5 and Jan 12, plus a defined early Jan event window.
Coforge Encora: $2.35 bn all stock buy keeps Coforge in focus on AI scale, despite dilution and integration watch.
Vedanta critical minerals: Depo graphite vanadium win lifts transition optionality; stock hits 52-week highs with metals strength.
PNB fraud flag: ₹2,434 cr SREI-linked fraud disclosure revives legacy risk monitoring for PSU banks.
Sigachi legal overhang: CEO remand in fire probe triggers a sharp selloff as legal and liability risk gets repriced.
TOP STORIES
1. RBI starts a multi-step liquidity push, key dates land in the first week
Gemini-2.5
Core move: RBI began its ₹2 lakh crore OMO bond purchase plan, split into four ₹50,000 crore tranches. Next auctions are Jan 5 and Jan 12, with the final on Jan 22.
Why it matters: This is a clear pro-liquidity signal into the new year, supportive for banks, bond yields, and rate-sensitive sectors.
Market reaction: Bonds and rate sensitives are likely to stay bid on liquidity visibility, with the first week of January now a defined watch window.
RBI OMO schedule into early Jan. Impact?
2. Coforge deal stays hot: $2.35 bn Encora acquisition
Gemini-2.5
Financial development: Coforge agreed to acquire Encora for $2.35 bn (EV) via share swap, with a close guided in 4 to 6 months.
Strategic angle: The deal deepens AI engineering scale and expands US and nearshore delivery, aiming for larger transformation programs.
Market reaction: Coforge gained about 2% in the session, bucking the weak tape as investors priced growth optionality.
Coforge-Encora all-stock deal. Your view?
3. Vedanta wins Depo graphite vanadium block, stock hits fresh highs
Gemini-2.5
What changed: Vedanta was declared the successful bidder for the Depo Graphite Vanadium block under critical mineral auctions.
Why it matters: Graphite and vanadium strengthen energy transition materials optionality and broaden the long-cycle resource portfolio.
Market reaction: Shares rose over 2% to a 52-week high, tracking both the news and broader metals strength.
Vedanta wins graphite-vanadium block. Signal?
4. PNB flags ₹2,434 cr fraud linked to SREI entities
Gemini-2.5
Disclosure: PNB reported a ₹2,434 crore borrowal fraud linked to SREI Equipment Finance and SREI Infrastructure Finance exposures.
Implication: Even if provisioned, this reopens scrutiny on legacy controls, recoveries, and headline risk for PSU banks.
Market reaction: PNB saw early pressure with sentiment cautious, as markets reprice governance and litigation tails.
PNB flags ₹2,434 cr fraud. Market take?
5. Sigachi slides after CEO remand in Hyderabad unit fire probe
Gemini-2.5
Legal update: Sigachi disclosed that its MD and CEO was remanded in the probe linked to the June 2025 fire at its Hyderabad unit.
Why it matters: The overhang shifts from operational recovery to legal and regulatory outcomes, raising uncertainty on governance and liabilities.
Market reaction: The Stock fell around 8% as investors de-risked on headline and enforcement risk.
Sigachi CEO remand in fire probe. What next?
GYAANI HOT TAKES
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