Sensex, Nifty, Share Prices LIVE: Indian equity markets are expected to open flat to slightly negative on Monday, with Gift Nifty signalling a muted start and dimming hopes of a Santa Claus rally. Volatility is likely to remain elevated ahead of Tuesday’s monthly F&O expiry, particularly in mid- and small-cap stocks. Asian markets are offering mixed cues, with Japan’s Nikkei trading marginally lower while South Korea’s KOSPI outperforms, pointing to selective risk-taking in the region.

Year-end holiday positioning is keeping volumes subdued, while persistent foreign institutional investor (FII) selling and global macro uncertainties continue to cap upside. However, resilient domestic fundamentals and steady local inflows are providing some downside support. ICRA expects India’s GDP growth to improve to 7.4% in FY2026, though growth may moderate in the second half. Derivatives data suggests consolidation, with traders positioning for limited upside and continued range-bound action in the near term.