TLDR
Market Recap: December 26, 2025
On December 26, Indian equities eased for a third straight session in holiday-thinned trade as IT dragged and traders booked profits near record zones. Sensex closed at 85,041.45 (-367.25, -0.43%) and Nifty 50 at 26,042.30 (-99.80, -0.38%); Nifty Midcap 100 slipped 0.23% and Nifty Smallcap 100 dipped 0.08%. India VIX stayed near multi-year lows at 9.15 (-0.04, -0.44%), signalling muted risk pricing. Flows were mixed with FIIs net sellers (₹317.56 cr) and DIIs net buyers (₹1,772.56 cr), while the rupee held near 89.85 per USD with intervention chatter and RBI liquidity actions in focus.
Key Drivers :
IT profit-taking: IT-led declines on stock-specific booking after a strong run, keeping benchmarks under pressure despite broader stability.
Flows split: FIIs stayed marginal net sellers while DIIs absorbed supply, keeping the drawdown orderly rather than capitulation-like.
Low vol, tight ranges: India VIX hovered near 9, reinforcing a consolidation tape and limiting panic hedging despite soft global cues.
Today’s Top Stories:
Ola Electric PLI boost: ₹366.78 crore incentive sanction sparks a sharp stock pop as investors price in cash support.
Lenskart Korea stake: A KRW 3bn tech investment fuels optimism on proprietary equipment and efficiency gains.
Rico Auto momentum: Heavy volumes push the stock to a fresh 52-week high, reflecting high risk appetite.
Bankex adds 4 banks: New inclusions go live, setting up potential passive and derivatives positioning shifts.
Defence outperforms: Order pipeline hopes lift HAL, Mazagon Dock, and BEL as the broader market cools.
TOP STORIES
1. Ola Electric: ₹366.78 cr PLI incentive sanctioned
Gemini-2.5
Financial: The government sanctions ₹366.78 crore PLI Auto incentive for FY25 via an official order.
Strategic: Supports cash runway and localisation narrative; improves near-term profitability optics.
Market: Stock jumped around 5% intraday, outperforming a weak tape.
Ola gets ₹366.78 cr PLI sanction. Your take?
2. Lenskart: KRW 3bn for 29.24% in Korea’s iiNeer
Gemini-2.5
Financial: Singapore arm invests KRW 3 billion for a 29.24% stake in iiNeer (optical equipment maker).
Strategic: Secures equipment IP, improves store throughput, and de-risks supply for core optical hardware.
Market: Shares rose about 4% on the tech-control update.
Lenskart buys into optical equipment tech. Impact?
3. Rico Auto: 13% surge to 52-week high on heavy volumes
Gemini-2.5
Move: Stock hits a fresh high near ₹141.65, up about 13% with unusually heavy trading volumes.
Read-through: Momentum reflects renewed small-cap risk appetite and auto-ancillary enthusiasm.
Market: Outperformed sharply despite index weakness; watch follow-through after volume normalises.
Rico Auto hits new high on volumes. Next?
4. BSE Bankex reshuffle: adds 4 banks, expands to 14
Gemini-2.5
Change: Canara Bank, AU SFB, PNB, Union Bank added; index expands to 14 constituents.
Strategic: Refresh supports Bankex derivatives depth and benchmark relevance.
Market: Added names may see passive and derivatives-linked flows into the month-end.
Bankex reshuffle goes live. Effect on added banks?
5. Defence stocks: outperform on DAC approval expectations
Gemini-2.5
Setup: Defence index rose intraday; HAL, Mazagon Dock, BEL led on procurement approval expectations.
Strategic: Pipeline clarity supports FY26 visibility and premium valuations.
Market: Sector beat benchmarks as investors rotated into policy-led cyclicals.
Defence stocks rally on DAC hopes. Your stance?
GYAANI HOT TAKES
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