Wall Street Ends 2025 On A High Despite Year-End Dip; GIFT Nifty Signals Positive Start To 2026

Nearly all global markets are shut today for the New Years holiday. US markets closed down to end the year .The S&P 500 slipped on the final day but finished 2025 up ~16% as AI tailwinds persisted; the Dow and Nasdaq also posted double‑digit annual gains.

2026 Outlook Upbeat On Global Stimulus Hopes

Expectations for 2026 are optimistic, with Trump Big Bold Beautiful Tax cuts to continue the stimulus to corporate earnings. Japan and China are also looking at a big stimulus. In Europe, the German stimulus will help the entire region's economy in 2026. Against this are geopolitical risks and valuations which are stretched to say the least. From China-Taiwan to Russia-Ukraine to US-Venezuela, geopolitical risks are well known and hence discounted.

Indian Markets See Year-End Short Covering

Indian markets saw short covering on the last trading day of CY2025. However, FPIs remained heavy sellers in the cash market while DIIs stepped in for a record 87th successive day of net inflows. FPI positioning remains extremely short at 91% short. GIFT Nifty is indicating a positive open . Volumes will be low with most global markets on holiday.

Also Read: Nifty, Sensex Prediction For 2026: Is The Current Oversold Setup A Bullish Signal? Ajay Bagga Answers