Indian equities experienced a downturn today, with both the Sensex and Nifty indices feeling the pressure of muted year-end trading and persistent concerns over foreign fund flows.
The BSE Sensex fell over 200 points, while the Nifty 50 tested the 25,900 level. The Sensex closed at 84,695.54, a decline of 345.91 points or 0.41%. The Nifty 50 also closed lower at 25,942.10, shedding 100.20 points or 0.38%.
Several factors contributed to the market's subdued performance. Year-end profit-taking, sustained foreign outflows, and thinner trading volumes all played a role. Foreign portfolio investors (FPIs) have been net sellers, contributing to the cautious sentiment.
Broader market indices also reflected the negative sentiment. The Nifty Midcap 100 index declined 0.52%, and the Nifty Smallcap 100 fell 0.72%. Sectorally, IT, realty, and auto stocks experienced the most significant selling pressure.
Individual stock performances were mixed. Eternal Ltd, along with L&T, experienced a 1% drop. According to preliminary data, Eternal Ltd’s share price moved down by -1.09% from its previous close. Other major laggards on the Sensex included Power Grid, Trent, and HCL Technologies. Conversely, Tata Steel and Asian Paints bucked the trend, ending the session in positive territory. GE Vernova T&D India surged 47% in 2025 due to record orders and a strong growth outlook.
Analysts suggest that the market is likely to remain range-bound in the near term, with investors closely monitoring macroeconomic cues and institutional fund flows. Derivative analysts anticipate a "sell-on-rise" approach in the near term, with the Nifty 50 expected to end between 25,900 and 26,100 points. According to Trading Economics global macro models and analysts expectations, the BSE SENSEX Stock Market Index is expected to trade at 84968.13 points by the end of this quarter and looking forward, it is estimated to trade at 78629.33 in 12 months time.
Global cues also played a role in shaping market sentiment. Asian markets edged lower, and the US markets closed lower, with the Dow Jones dropping 240 points. The U.S. dollar held steady ahead of the Federal Reserve's release of its December minutes.
The Indian Rupee rose 3 paise to 89.95 against the US dollar in early trade.
Overall, the Indian stock market is experiencing a period of consolidation amid global uncertainties and year-end adjustments. Investors are advised to remain cautious and monitor key economic indicators and fund flow dynamics for future direction.
