The new year promises new highs for Indian markets

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Wall Street’s major indexes closed lower in the final trading session of 2025, yet still delivered substantial annual gains following a turbulent year shaped by President Donald Trump’s tariff uncertainties and enthusiasm surrounding AI-focused stocks.

The Dow posted its eighth consecutive monthly gain, the longest such streak since 2017-2018.

The New York Stock Exchange and Nasdaq will remain closed today in observance of New Year’s Day.

For the full year, the S&P 500 climbed 16 per cent while the Nasdaq Composite surged 20 per cent, marking the third consecutive year of double-digit returns for both indexes. The Dow Jones Industrial Average advanced 13 per cent, while India’s Nifty eked out 10.5 per cent gains.

Major Asian equity markets closed on Wednesday on a mixed note amid shortened sessions, holidays, and light trading volumes. Most regional markets remain positioned to finish the year with solid gains, buoyed by the AI-driven rally.

Oil prices declined on Wednesday, recording an annual loss of nearly 20 per cent as expectations of oversupply mounted in a year marked by geopolitical conflicts, elevated tariffs, increased OPEC+ output, and sanctions on Russia, Iran, and Venezuela.

Nifty staged a strong recovery on the first day of the January derivative series, snapping a four-day losing streak with a sharp 190-point rebound to close at 26,129.

A sustained move above the previous swing high resistance at 26,234 would confirm a breakout, paving the way for a move to fresh all-time highs above 26,325 and beyond.

On the downside, 25,900 now serves as immediate support, with any dips toward this level likely to attract buying interest from positional bulls.

Indian markets are poised to open moderately higher in today’s trade.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

 Source: HDFC Securities Prime Research