Benchmark indices Nifty and Sensex opened on a subdued note, slipping in the penultimate trading session of the year on December 30 after a strong close in the session before. While FMCG stocks provided some support, IT and auto counters weighed on sentiment. As the final week of the year unfolds, market activity remains muted, with investors tying up their books amid the festive lull.

India VIX, the barometer to assess market anxiety flared up 3 percent to inch closer to the 14 level.

At about 9:45 am, the Sensex was down 200.50 points or 0.25 percent at 78,498.57, and the Nifty was down 68.55 points or 0.29 percent at 23,744.85. About 1234 shares advanced, 1953 shares declined, and 172 shares unchanged.

"With no significant triggers in the near term, markets will likely remain range-bound. Pre-quarterly business updates to be released in the first week of Jan’25 will provide insights into the upcoming result season and will be keenly tracked by the markets," Siddhartha Khemka, Head of Research and Wealth Management at Motilal Oswal said.

Market experts also suggest that any negative earnings surprises could lead to heightened volatility. Risks to the market include inflation, particularly in agriculture, and further depreciation of the rupee against the dollar, which could drive FII selling and create additional pressure on equities.

Among sectoral indices, the Nifty Auto index slipped lower to snap its two-day gaining streak. Major names such as M&M, Maruti Suzuki, and Tata Motors dragged the index lower. IT stocks plunged as Infosys, HCL Tech, TCS and Wipro dragged the index lower. The metal and Oil and Gas sectors also plunged 0.5 percent each. On the other hand, gainers included FMCG, Pharma, and Realty. The realty index witnessed buying interest following two consecutive sessions of decline.

The broader market displayed heightened volatility. While the midcap index ended 0.3 percent lower, the smallcap index slipped almost 0.5 percent. Some experts say that mid and small-cap segments are fundamentally strong, and with consistent earnings improvement, they could likely outperform large caps in 2025.

Among stocks, JSW Energy sparkled in trade with gains of 6 percent. This comes after a wholly-owned subsidiary of the firm, JSW Neo Energy, signed a definitive agreement to acquire O2 Power, a renewable energy platform jointly established by Swedish asset manager EQT Partners and Singapore’s Temasek Holdings. Brokerages were bullish on this acquisition, as it bolstered the energy player's growth outlook.

Shares of Vodafone Idea Ltd. surged 7 percent after the debt-laden telecom operator announced that the Department of Telecommunications (DoT) has waived the requirement for financial bank guarantees on spectrum acquired through auctions, as per its December 27, 2024 communication.

Zinka Logistics Solutions shares declined by 2 percent after Morgan Stanley gave an underperform rating with a target price of Rs 450 per share. This indicates a downside potential of around 16 percent from the previous session's closing price. While the brokerage recognizes Zinka's niche position and strong competitive advantages in a fragmented market, it believes the stock's recent rally, which is up 105 percent since its November 2024 listing.

"As we approach the end of the calendar year, consolidation is likely to persist for the next few sessions. A decisive breakout from the recent trading range would be required to trigger a trending move," Sameet Chawan, Head of Technical and Derivative Research at Angel One said. "On the downside, the zone around 23,600–23,500, aligning with last Friday’s low, acts as a critical support level. A breach below this range could reignite the downtrend, potentially driving prices towards 23,300–23,200. Conversely, resistance levels are seen at regular intervals, with 200-day SMA at 23900 and a psychological mark of 24,000 serving as immediate hurdles." he added.

Adani Enterprises, Adani Ports, Apollo Hospitals, Bharti Airtel, and ITC were the top gainers on the Nifty. Trent, BPCL, Titan Company, ONGC, and M&M were the major laggards.