Equity benchmarks closed lower for the second consecutive session on Monday, with the Sensex declining 436.41 points or 0.51 per cent to 84,666.28 and the Nifty falling 120.90 points or 0.47 per cent to 25,839.65, as investors remained cautious ahead of the US Federal Reserve’s monetary policy decision scheduled for this week.
Asian Paints emerged as the biggest loser on the Nifty, plummeting 4.60 per cent to ₹2,793.70, leading the decline among large-caps. Technology stocks also witnessed significant selling pressure, with Tech Mahindra dropping 1.90 per cent to ₹1,561.50, HCL Technologies falling 1.82 per cent to ₹1,657.90, and Wipro declining 1.53 per cent to ₹257.39. Tata Steel rounded off the top losers, shedding 1.52 per cent to ₹160.99.
On the gainers’ side, Eternal led the pack with a 2.28 per cent rise to ₹291.75, followed by Titan Company which gained 1.94 per cent to ₹3,840.10. Adani Enterprises advanced 1.53 per cent to ₹2,250.00, while IndiGo climbed 1.31 per cent to ₹4,988.00 and Shriram Finance rose 1.17 per cent to ₹844.00.
“Today, the benchmark indices witnessed a volatile trading session. After a roller-coaster activity, the Nifty ended 121 points lower, while the Sensex was down by 436 points,” said Shrikant Chouhan, Head Equity Research at Kotak Securities. “Among sectors, the Nifty PSU Bank index rallied 1.25 per cent, whereas the IT index lost the most, shedding 1.25 per cent.”
The Nifty opened 93 points lower and extended its decline by another 139 points, hitting an intraday low of 25,728. However, a strong recovery of 195 points emerged post 10 AM, before facing mild correction after 2 PM. “The index found support precisely at its 50-DEMA (25,728) and rebounded from that level, underscoring its short-term significance,” noted Nandish Shah, Deputy Vice President at HDFC Securities.
Market breadth turned positive after seven sessions, with 2,550 stocks advancing against 1,625 decliners on the BSE. The advance-decline ratio improved to 1.68, the highest since November 26, signaling a sharp rebound in broader markets. The Nifty Midcap 100 closed 0.32 per cent higher at 59,676.20, while the Nifty Smallcap 100 staged a strong recovery, gaining 1.14 per cent to 17,245.80.
“A notable highlight of the session was the outperformance of the broader market after several muted days. The Nifty Smallcap 100 staged a strong rebound from oversold levels,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
The Indian rupee appreciated 23 paise to 89.82 against the US dollar. “The rupee rose as short covering emerged after a mild recovery in equities, while the dollar remained flat near 99,” said Jateen Trivedi, VP Research Analyst at LKP Securities. “With the Fed’s final policy of the year due this week, volatility is expected to stay high. The rupee is likely to trade in the 89.75–90.25 range.”
Gold prices gained traction with MCX gold rising ₹130 to ₹1,30,100. “Markets remain focused on this week’s Federal Reserve policy, where a 0.25 per cent rate cut is already priced in,” Trivedi added.
“The key driver for current market downturn is the influence of global factors, primarily caution ahead of the US Federal Reserve’s monetary policy decision,” explained Aditya Agarwal, Co-Founder of Wealthy.in.
For the near term, analysts suggest 25,750 on the Nifty will act as crucial support, while 25,950-26,000 zone will serve as immediate resistance levels in the coming sessions.
Published on December 9, 2025
