IT Drag Weighs on Nifty as Markets Slip; Deal Action and Sector Divergence in Focus – Paper by Pocketful
Market Recap: 26th December, 2025
🗞 Stock News Highlights
Jindal Steel (+0.41%): Shares rose after announcing plans to double Raigarh structural steel capacity from 1.2 MTPA to 2.4 MTPA by 2028, strengthening growth outlook.
Coforge (+0.60%): Shares surged as it agreed to buy US-based Encora in a $2.35 billion all-stock deal, drawing mixed analyst reactions.
Larsen & Toubro (-0.21%):The stock traded lower after it secured a major Phase-2 order for Hyderabad’s Greenfield Radial Road project, strengthening its order book and reinforcing execution visibility in core infrastructure projects.
Arvind Fashions (-0.88%): The stock moved lower after it agreed to acquire Flipkart’s 31.25% stake in Arvind Youth Brands for ₹135 crore, securing full ownership and strengthening control over its youth apparel portfolio.
🏢 Sectoral Performance
Media | NIFTY Media (+0.93%): The media sector advanced on broad-based buying interest, with seven of ten constituents in the green as strong gains in Nazara, PVR INOX and Saregama lifted the index, comfortably offsetting mild pressure from Network18 and Zee Entertainment through the session.
FMCG | Nifty FMCG(+0.11%): The sector ended marginally higher after advances in Tata Consumer Products, HUL and Nestlé offset declines in ITC-led draggers, keeping the sector resilient despite uneven trading conditions.
Consumer Durables | Nifty Consumer Durables (-0.91%): The sector slid on widespread selling pressure, with 13 of 15 constituents in the red as sharp losses in Dixon Technologies, Titan, Blue Star and Amber Enterprises dragged the index lower and kept sentiment weak throughout the session.
IT | Nifty IT (-0.75%): Sector traded lower for most of the session as sustained selling in heavyweight names such as Infosys, TCS and HCL Tech weighed on the index, offsetting modest support from Coforge and Tech Mahindra amid cautious investor participation.
🔍 Market Insights
Technical Level: Nifty opened weak near the 26,050 zone and quickly slipped into a steady intraday downtrend, forming lower highs and lower lows through the morning. Selling pressure intensified below 26,000, with the index bottoming out around 25,930–25,940, where demand finally emerged. A mild post-noon recovery followed, but repeated failures near the 25,980–26,000 band capped upside attempts. Momentum indicators stayed subdued, and the rebound appeared more corrective than impulsive. Nifty ended near 25,950, down about 0.38%, reflecting persistent distribution, lack of follow-through buying, and continued supply overhead keeping bulls on the defensive.
Advance-Decline Ratio: The broader market showed negative breadth, as 1,022 stocks advanced while 2,188 declined and 84 unchanged, supporting overall market resilience.
The Big Picture: Ukrainian President Volodymyr Zelensky met U.S. President Donald Trump in Florida to advance a peace plan aimed at ending the war with Russia. Both leaders reported progress, with security guarantees nearing agreement, but thorny issues like the fate of the Donbas region remain unresolved. Trump said talks have brought the sides “very close” to a deal, with further work ahead.
FII/DII Activity (Dec 26, 2025): Strong domestic inflows of ₹1,772 crore by DIIs helped stabilise markets despite ₹317 crore net selling by FIIs.
🔮 Watch Out For Tomorrow
IPO Corner: E to E Transportation Infrastructure SME IPO opened on 26th December, with investors closely watching subscription levels rising overall 100 times and biddings will close on 30th December.,
Macro: India’s M3 Money Supply & USA FOMC Meeting Minutes will be released on 30th December.
Index Watch: Nifty remains in a fragile setup after defending the 25,930–25,940 demand zone but failing to reclaim the 26,000 handle. As long as the index stays below 26,050–26,100, upside attempts may face selling pressure. A decisive move above 26,100 is needed to revive bullish momentum. On the downside, a break below 25,930 could open room toward 25,850–25,800, keeping the tone cautious in the near term.
5 Day Course
Theme: Smart Risk Management in Markets
Day 5: Monday – Capital Preservation Mindset
Capital preservation is the foundation of long-term success in markets. Protecting capital during bad phases is as important as growing it during good times. Overtrading, revenge trading, and ignoring risk rules often lead to large drawdowns. A preservation mindset encourages patience, selectivity, and discipline. When capital is preserved, opportunities can be exploited when conditions improve. The goal is not to trade every day, but to trade wisely. Markets reward those who survive long enough to benefit from compounding and experience.
📝 Word Of The Day
Drawdown Tolerance - It is the emotional and financial ability to stay invested during temporary portfolio losses without panic selling or abandoning a sound long-term investment strategy.
👀 Stay tuned. Stay diversified.
Until next time,
Team Pocketful.