The BSE Sensex settled 367 points lower at 85,041 on the final trading day before the weekend. The NSE Nifty finished nearly 100 points down at 26,042 after resuming sessions post the Christmas holiday. Trading volumes remained subdued as the year draws to a close.

Several heavyweight stocks in information technology and automobile segments dragged the indices. Financial services also contributed to the downside pressure. Gains in select metal, consumer goods, and media shares provided limited support.

Foreign institutional investors continued net selling, impacting sentiment. Year-end positioning and absence of major triggers kept activity range-bound. Global factors, including expectations around central bank policies, offered mixed cues.

Over the shortened week, both benchmarks posted slight advances, breaking a prior losing streak. This reflects underlying resilience despite recent caution. Broader market segments displayed varied performance, with midcap and smallcap indices showing marginal changes.

Investors now shift focus to forthcoming corporate results and economic indicators.