Mumbai, Dec. 26 -- Indian equity markets head into the holiday-shortened week with consolidation dominating sentiment, as the Nifty50 and Sensex trimmed weekly gains amid profit-taking and thin year-end trading volumes. Benchmarks rose marginally over the week but saw profit booking at record highs, reflecting investor caution in the absence of fresh catalysts.

The rupee remained stable near 89.83 against the U.S. dollar, aided by state-bank interventions, even as the Chinese yuan outperformed, highlighting divergent currency dynamics that could impact import costs and FII flows. Globally, surging gold prices reached record highs, prompting shifts in investor positioning and risk sentiment that may influence risk assets.

On the policy f...