Market summary
Indian equity benchmarks reversed their two‑session winning streak on 8 December 2025, ending sharply lower after the Reserve Bank of India’s 25 bps rate cut the previous session. Profit‑booking, persistent foreign portfolio investor (FPI) outflows and weakness in global markets dragged both large‑ and small‑cap indices lower. Volatility also spiked, with the India VIX jumping about 7.9 % to 11.13. A look at major indices shows the extent of the sell‑off:
| Index/benchmarks | Closing level | Change (%) | Notes |
|---|---|---|---|
| Nifty 50 | 25,960.55 | −0.86 % | Slipped below the psychological 26k mark; decline led by airlines, electronics and metal names. |
| Sensex (BSE 30) | 85,102.69 | −0.71 % | Stayed above its 50‑day moving average despite the 610‑pt fall. |
| Nifty Bank | 59,238.55 | −0.90 % | Most banking constituents ended in the red; PSU banks underperformed. |
| Nifty Midcap 100 | 59,488.10 | −1.83 % | Mid‑caps bore the brunt of selling. |
| Nifty Next 50 | 67,302.50 | −2.05 % | Reflects weakness in broader large‑cap universe outside the main index. |
| Nifty Smallcap 100 | 17,051.65 | −2.61 % | Small‑caps saw the steepest cuts; risk appetite remained muted. |
| Nifty IT | 38,590.70 | −0.29 % | IT index relatively resilient; some buying in large‑cap software names. |
| Nifty Pharma | 22,640.70 | −1.34 % | Pharma stocks fell on profit‑booking. |
Sectoral performance
All NSE/BSE sector indices ended in the red. The worst‑hit sectors were:
| Sector index | Direction | Drivers |
|---|---|---|
| Realty | −3.5 % | Sharp correction after recent run‑up; liquidity concerns and profit‑booking weighed on developers. |
| PSU Bank | ≈−3 % | Profit‑taking in state‑run lenders; rising bond yields and rupee weakness dampened sentiment. |
| Media & Telecom | ≈−2.5 % | Negative newsflow around broadcasting companies and continued weakness in telcos. |
| Mid‑ & Small‑cap indices | −1.8 % to −2.6 % | Risk aversion triggered heavy selling; advance–decline ratio heavily skewed towards decliners. |
| IT | −0.3 % | Out‑performed the market thanks to resilience in large‑cap software stocks. |
Market breadth: On the BSE about 949 stocks rose versus 3,352 declining; on the NSE, roughly 824 shares advanced, while 3,146 declined, indicating broad‑based selling. The India VIX jumped ~7.9 % to 11.13, signalling an uptick in expected volatility.
Key statistics
- Foreign portfolio investors (FPIs): Net sellers; FPIs withdrew roughly ₹11,820 crore through exchanges in the first week of December, citing rupee depreciation and global uncertainty. Domestic institutional investors provided only limited support.
- Currency: The Indian rupee closed 10 paise weaker at ₹90.09/US$ amid dollar strength and higher oil prices.
- Commodity market: Crude oil prices inched lower on concerns of weak demand, while gold held firm as investors sought safety ahead of the US Federal Reserve meeting.
- Economic indicators: Investors remained cautious ahead of US CPI data, China trade numbers and the Federal Reserve’s rate decision later in the week.
Top gainers and losers
The market’s weakness did not prevent a few large‑cap technology names from posting small gains. Airlines, defence electronics and metals were the biggest drags. The table below lists some notable gainers and losers from the day’s trade.
| Category | Stock | Price (₹) | % change | Comments |
|---|---|---|---|---|
| Top gainers | Tech Mahindra Ltd | 1,591 | +1.29 % | Benefited from resilience in IT sector; bargain‑hunting after recent declines. |
| Wipro Ltd | 261.26 | +0.52 % | Defensive buying in IT; continued deal momentum. | |
| HCL Technologies Ltd | 1,686.90 | +0.23 % | Up on expectations of strong quarterly performance. | |
| Reliance Industries Ltd | 1,542.30 | +0.11 % | Gains from petrochemicals and telecom offset pressure in refining margins. | |
| Top losers | InterGlobe Aviation Ltd (IndiGo) | 4,904 | −8.69 % | Slumped amid flight disruptions and brokerage downgrades; rising fuel costs also a headwind. |
| Bharat Electronics Ltd | 385.95 | −5.15 % | Correction after a strong run; concerns over order visibility. | |
| JSW Steel Ltd | 1,115.90 | −3.98 % | Profit‑booking as steel prices faltered; global metal weakness. | |
| Nestlé India Ltd | 1,214.00 | −2.64 % | Consumer staples stock declined on valuation concerns and profit‑taking. |
Broader market movers: Among mid‑caps, 3M India (+2.14 %) and Home First Finance (+2.2 %) bucked the trend, while Kaynes Technology (−7.49 %) and Latent View (+10.3 %) were notable movers in the BSE 500 universe. In small‑caps, Matrimony.com rallied over 10 %, whereas Dec.Gold Mines slid more than 9 %.
What moved the market
- Profit‑booking after RBI rate cut: The RBI’s 25 bp reduction in the policy rate spurred a strong rally on 5 December. On Monday, traders booked profits, bringing indices back below key levels. Market participants also questioned the long‑term effectiveness of rate cuts in spurring credit demand.
- FPI selling and rupee weakness: Persistent FPI outflows — around ₹11,800 crore so far in December — reflected concerns over a weakening rupee and expensive valuations. The rupee fell to ₹90.09/US$, making Indian assets less attractive to foreign investors.
- Global uncertainty: Investors were cautious ahead of a busy week of global data. Asian markets mostly traded higher on expectations of Chinese stimulus, but European markets were mixed and US futures were range‑bound ahead of the US Federal Reserve meeting. The possibility of further rate cuts or dovish signals from the Fed kept participants on the sidelines.
- Sector‑specific pressures: Realty stocks fell sharply amid liquidity concerns and regulatory headwinds. PSU banks corrected after a strong run as bond yields edged higher. Media and telecom indices declined on weak advertising outlooks and regulatory worries. Technology stocks out‑performed due to resilient deal pipelines and a weaker rupee.
- Stock‑specific news: Heavy selling in InterGlobe Aviation following flight disruptions and brokerage downgrades weighed on sentiment. Kaynes Technology tumbled after analysts flagged discrepancies in its disclosures. Emmvee Photovoltaic Power signed a large solar‑cell supply contract, while Matrimony.com announced plans to consider a share buy‑back, supporting their respective stocks.
Global cues
- Wall Street: US indices ended last Friday higher, with the S&P 500 up 0.19 % and the Nasdaq Composite up 0.31 %, as strong personal‑consumption data suggested cooling inflation. Futures were flat to slightly higher on Monday ahead of the Fed’s final meeting of 2025. Investors expect another rate cut as inflation continues to moderate.
- Europe: European stocks were mixed as traders awaited the Fed decision and digested data showing that Japan’s GDP contracted 2.3 % annualised in Q3. Weak economic readings kept risk appetite subdued.
- Asia: Most Asian markets ended higher; however, investors awaited China’s trade data for clues on global demand. Japanese indices shrugged off weak GDP revisions, while Hong Kong’s Hang Seng fell on profit‑taking in technology shares.
- Commodities & FX: Crude oil prices eased amid demand worries, while gold edged up ahead of the Fed meeting. The dollar strengthened modestly against major currencies, pressuring emerging‑market currencies like the rupee.
Stocks to watch and corporate updates
- Emmvee Photovoltaic Power signed a supply agreement to provide 4.5 GWp of TOPCon crystalline silicon photovoltaic cells to a domestic buyer, signalling strong order visibility for the renewable‑energy player.
- Kaynes Technology shares slumped about 12 % after a broker report highlighted inconsistencies in the company’s FY25 disclosures and those of its subsidiary. The stock has lost nearly ₹10,000 crore in market capitalisation over three sessions.
- Matrimony.com announced that its board will meet on 15 December 2025 to consider a share buy‑back, sparking investor interest.
- SML Mahindra reported a 94 % year‑on‑year jump in commercial‑vehicle sales for November, lifting the stock nearly 3 %. Ashoka Buildcon gained after winning a ₹447 crore flyover contract from the Brihanmumbai Municipal Corporation, while SPML Infra and HFCL fell despite securing orders due to broader market weakness. RailTel declined after receiving a modest order from the Ministry of External Affairs.
- IPO watch: The initial public offerings of Corona Remedies and Wakefit Innovations opened on 8 December. Subscription levels were modest (0.51 × and 0.14 ×, respectively) as of the provisional close, reflecting cautious investor sentiment.
Technical outlook and tone for the next trading day
- Nifty support and resistance: The index has slipped below its 20‑day and 21‑day moving averages. Immediate support lies in the 25,850 – 25,800 zone (previous swing low). A decisive break below 25,800 could open the way to 25,650 and 25,500. On the upside, the 26,150 – 26,200 band should act as a strong resistance.
- Bank Nifty levels: The banking gauge has broken an upward‑sloping trend‑line. Support is seen near 59,000 – 58,900; a break could drag it to 58,700 and 58,500. Resistance is near 59,400 – 59,500.
- Market tone: With FPIs selling and global events looming, the tone is expected to remain cautious to negative. Investors will watch the Fed policy decision, US inflation data and China’s trade numbers for cues. Unless global markets provide a positive trigger or FPI flows stabilise, the Nifty may consolidate below 26,000 with a downside bias. Traders should remain selective, focusing on sectors showing relative strength (IT and select financials) while avoiding over‑leveraged positions in rate‑sensitive stocks.
