The markets commenced on a pessimistic note on Monday, with major indices facing declines as investors exercised caution ahead of the US Federal Reserve’s policy decision later in the week. The BSE Sensex opened at 84,742.87, down from its previous close of 85,102.69, and was recorded at 84,465.38, a decrease of 637.31 points or 0.75 percent by 9:50 AM. The NSE Nifty opened at 25,899.55, compared to its prior close of 25,960.55, and fell to 25,754.90, losing 205.65 points or 0.79 percent.
GIFT Nifty futures indicated a subdued start, with the index trading around 25,965, approximately 100 points lower, reflecting a globally prevalent risk-off sentiment. “Indian equity markets enter today’s session in a cautious consolidation phase following a controlled corrective pullback from recent highs,” stated Ponmudi R, CEO of Enrich Money. He added that the increase in US Treasury yields ahead of the Federal Reserve’s expected quarter-point rate cut has contributed to a renewed layer of caution among global investors.
Market breadth remained notably weak, with only two gainers among the Nifty50 stocks. Titan Company saw a modest increase of 0.38 percent, trading at ₹3,781.30, while Bharti Airtel inched up 0.14 percent to ₹2,089.20. On the downside, Asian Paints led the decliners, plummeting 3.58 percent to ₹2,823.40, followed by Jio Financial Services which dropped 2.42 percent to ₹290.00. Trent decreased by 1.86 percent to ₹4,014.40, while both Max Healthcare and Shriram Finance fell by 1.57 percent to ₹1,062.50 and ₹821.15, respectively.
Foreign Institutional Investors (FIIs) continued a selling trend for the third consecutive session on December 8, offloading equities valued at ₹655 crore. “FIIs were heavy net sellers in index options, totaling nearly ₹10,844 crore, indicative of aggressive Call writing activity,” noted Ponmudi, adding that “yesterday alone witnessed ₹13.4 crore of fresh Call writing, suggesting the establishment of new short positions at elevated levels.”
Conversely, Domestic Institutional Investors (DIIs) provided some support by purchasing ₹2,542 crore during the same session. “After the RBI’s rate cut, Dalal Street briefly attempted to ascend, but the Nifty fell throughout the session, dropping below the psychological 26,000 mark,” remarked Prashanth Tapse, Senior VP of Research at Mehta Equities.
From a technical standpoint, analysts exhibited caution regarding the near-term market trajectory. “The Nifty 50 continues to remain in a sideways-to-bullish structure as long as it sustains above the key 25,850 support level,” Ponmudi emphasized. Shrikant Chouhan, Head of Equity Research at Kotak Securities, added that “while the market trades below the 20-day SMA or 26,000/85,400, weak sentiment is likely to persist.”
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, pointed out the disconnect between large-cap and mid-small-cap performances. “Even when the Nifty reached a new record, 320 stocks in the NSE 500 were trading below their peaks, leading to discontent among retail investors with portfolios heavily weighted in mid and small caps,” he said, noting that “overvalued stocks in these segments are being sold off, adversely affecting their share prices.”
The commodities market displayed mixed trends, with gold receiving support from ongoing buying by China for the 13th consecutive month. “Gold has support between $4,165 and $4,135, with resistance between $4,230 and $4,265,” explained Rahul Kalantri, VP of Commodities at Mehta Equities. In international trade, crude oil prices dipped nearly 2 percent after Iraq reinstated production at key oilfields.
Published on December 9, 2025
