Indian markets rebound as year-end buying lifts benchmarks

Indian equity benchmarks advanced in year-end trade as bargain buying emerged after recent declines. The Sensex rose over 200 points while the Nifty reclaimed the 26,000 level, snapping a four-session losing streak. Gains came despite continued foreign fund outflows. Market participants cited rate support and easing inflation conditions as factors aiding sentiment during the final trading session of 2025.

Major U.S. stock indexes closed slightly lower in a holiday-shortened session, with the S&P 500, Dow Jones and Nasdaq each dipping amid thin year-end trading and mixed sector moves. Communication services saw gains but broader tech and financial stocks lagged. Investors watched Federal Reserve meeting minutes for policy signals and anticipated continued market volatility as 2025 draws to a close.