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Key gauges continue to trade lower in morning deals
Dec-26-2025

Indian equity benchmarks continued to trade lower in morning deals, amid foreign fund outflows as sentiment remained fragile amid low trading volumes and lack of any major domestic cues. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,721.26 crore on Wednesday, according to exchange data. Traders remained cautious as Indian IT industry body Nasscom stated that the US move to replace the H-1B visa lottery with a 'wage-weighted' selection mechanism is a significant departure from a long-standing neutral system, and raises important legal, economic, and operational concerns. Besides, a weak rupee and trade deal uncertainty further dented investor sentiment. On the global front, Asian markets were trading mostly in green amid holiday-thinned trade, though some exchanges remained closed for the Boxing Day holiday. 

The BSE Sensex is currently trading at 85187.96, down by 220.74 points or 0.26% after trading in a range of 85166.06 and 85378.51. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.11%, while Small cap index was up by 0.04%.

The top gaining sectoral indices on the BSE were PSU up by 0.48%, Basic Materials up by 0.34%, Consumer Durables up by 0.26%, Industrials up by 0.26% and Utilities up by 0.22%, while

TECK down by 0.40%, Oil & Gas down by 0.35%, IT down by 0.32%, Healthcare down by 0.25% and Auto down by 0.22% were the top losing indices on BSE.

The top gainers on the Sensex were Titan Company up by 1.59%, Bharat Electronics up by 1.04%, Trent up by 0.84%, Ultratech Cement up by 0.18% and NTPC up by 0.09%. On the flip side, Sun Pharma down by 1.36%, Bajaj Finance down by 1.23%, Asian Paints down by 0.99%, Tata Steel down by 0.88% and TCS down by 0.67% were the top losers.

Meanwhile, with focus shifting towards customs duty rationalisation and procedural simplification in the coming Budget, India has overhauled its tax regime in 2025 with sharp cuts in Goods and Services Tax (GST) rates and a higher income tax exemption limit. In the new year 2026, the over six-decade-old current Income Tax Act, 1961 will be replaced by the new simplified Income Tax Act, 2025, which will come into effect from April 1. Also, two new laws -- one to levy additional excise duty on cigarettes and another to levy cess on pan masala over and above GST rates -- will be implemented on a date decided by the government.

The government has rolled out tax reforms in 2025 with an aim to stimulating demand amid a challenging global economic environment. With tariff uncertainties casting a shadow over economic decision-making, India's tax reform measures focused on boosting domestic demand to drive consumption and support growth. A key highlight was the reduction of GST rates on about 375 goods and services effective September 22, which lowered the tax burden on commonly used items and addressed long-standing concerns over inverted duty structures. The move to compress the four-tier GST slab structure of 5, 12, 18 and 28 per cent into two principal rates of 5 and 18 per cent, with a 40 per cent levy retained only for sin goods, marked a major step towards rationalisation and simplification of the indirect tax regime.

On the direct tax front, the government raised the income tax exemption limit, providing relief to middle-income taxpayers and leaving more disposable income in the hands of consumers. The move was seen as a consumption booster, particularly for urban households, while also reinforcing voluntary compliance under the simplified tax regime. The Budget for 2025 announced that no income tax will be payable on income of Rs 12 lakh a year under the new income tax regime, which offers lower tax rates without the benefit of claiming exemptions and deductions. 

The tax rates applicable under this regime are 5 per cent of income between Rs 4-8 lakh, 10 per cent (Rs 8-12 lakh), and 15 per cent (Rs 12-16 lakh). Tax at 20 per cent rate is applicable on income between Rs 16-20 lakh, 25 per cent (Rs 20-24 lakh), and 30 per cent on income above Rs 24 lakh. However, the tax cuts slowed down non-corporate income tax collections between April and mid-December. Net non-corporate tax (which includes taxes paid by individuals, HUFs, and firms) grew 6.37 per cent at Rs 8.47 lakh crore between April 1 and December 17, as against a 10.54 per cent growth in net corporate tax collection at Rs 8.17 lakh crore. With major reforms in GST and income tax largely in place, policymakers have now turned their focus to customs duty rationalisation.

The CNX Nifty is currently trading at 26081.55, down by 60.55 points or 0.23% after trading in a range of 26071.55 and 26144.20. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were Titan Company up by 1.68%, Bharat Electronics up by 0.96%, Adani Enterprises up by 0.80%, Cipla up by 0.72% and Trent up by 0.72%. On the flip side, Sun Pharma down by 1.27%, Shriram Finance down by 1.23%, Bajaj Finance down by 0.92%, Tata Steel down by 0.92% and Asian Paints down by 0.87% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 397.21 points or 0.79% to 50,805.00, Taiwan Weighted added 175.56 points or 0.62% to 28,547.54, KOSPI increased 14.75 points or 0.36% to 4,123.37 and Straits Times rose 0.86 points or 0.02% to 4,637.20.

On the flip side, Shanghai Composite weakened 7.53 points or 0.19% to 3,952.09.
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