The Nifty 50 closed at 25,758, down 82 points, or 0.32%, while the Sensex finished 275 points, or 0.32%, lower at 84,391.27. The BSE Smallcap and Midcap indices experienced declines of 0.58% and 1.08%, respectively.
On Wednesday, December 10, the Indian stock market closed lower for the third straight session amid conflicting signals from around the world ahead of the US Federal Reserve's policy decision later today.
During the session, the market benchmark Sensex increased by 354 points to reach an intraday high of 85,020.34. However, it was unable to maintain gains and fell 629 points from the day's high to finish in negative territory.
Ultimately, the Nifty 50 closed at 25,758, down 82 points, or 0.32%, while the 30-share pack closed 275 points, or 0.32%, lower at 84,391.27. The BSE Smallcap and Midcap indices experienced declines of 0.58% and 1.08%, respectively.
As the total market capitalization of BSE-listed companies increased to around ₹463.8 lakh crore from ₹465 lakh crore in the previous session, investors lost more than ₹1 lakh crore in a single session.
The Nifty 50 has dropped 1.6% while the Sensex has dropped 1,321 points, or 1.5%, in three sessions.
Ten major highlights from the first day of the Indian stock market.
Why is the stock market in India declining?
Prior to the US Fed's policy announcement, the domestic market was in negative territory. Even if the Fed lowers interest rates by 25 basis points, experts think that a hawkish Fed could worsen the withdrawal of foreign capital from the Indian financial industry.
The rupee's depreciation, ongoing foreign capital outflow, and ongoing uncertainty about an India-US trade agreement have been the main causes of the market's decline.
"Despite continuous talks, continuing FII withdrawals, INR depreciation, and uncertainty surrounding US-India trade negotiations caused Indian markets to mimic global caution. According to Vinod Nair, Head of Research at Geojit Investments Limited, "central bank cues and clarity on trade developments will influence market direction in the near term."
"Rising Japanese bond yields and signs of BOJ monetary tightening, which are encouraging risk-off views in emerging countries, caused ongoing volatility in global equities markets. Now, attention is focused on the next US Fed meeting, where a rate drop of 25 basis points is anticipated. However, hopes for additional rate reduction in 2026 may be tempered by internal conflicts and conflicting economic data, according to Nair.
2. The Nifty 50 index's top gainers
The Nifty index's biggest gainers were shares of Eicher Motors (up 1.54%), Hindalco Industries (up 1.07%), and HDFC Life Insurance Company (up 1.06%).
3. The Nifty 50 index's top losers
The index's biggest losers were InterGlobe Aviation (IndiGo) (down 3.17%), Eternal (down 3.09%), and Trent (down 1.77%). In the Nifty pack, up to 31 stocks finished lower.
4. Today's sectoral indicators
PSU Bank (down 0.70%), IT (down 0.89%), and Nifty Consumer Durables (down 1.72%) all finished with substantial losses.
The Financial Services index lost 0.53%, and Nifty Bank fell 0.44%.
Conversely, Metal (up 0.46%), Pharma (up 0.17%), and Nifty Media (up 0.48%) all finished higher.
5. The most active stocks on the NSE in terms of volume were Vodafone Idea (68.87 crore shares), Meesho (40 crore shares), and Aequs (11.56 crore shares).
6. Amkay Products,
Rajshree Sugars & Chemicals, and Sheetal Cool Products were among the six stocks that had a greater than 15% increase on the BSE.
Conversely, seven stocks fell more than 10% on the BSE, including Hubtown, Kalyani Forge, and Kaynes Technology India.
7. Ratio of advance to decline
1,898 of the 4,337 equities that were traded on the BSE saw increases, while 2,289 saw decreases. About 150 stocks didn't change.
8. More than 70 stocks reached 52-week highs
During intraday trading on the BSE, about 74 equities, including Eicher Motors, AU Small Finance Bank, Anupam Rasayan India, and Aditya Birla Capital, reached their 52-week highs.
9. More than 130 stocks fell to 52-week lows
On Tuesday, 136 stocks on the BSE hit their 52-week lows, including Blue Dart Express, Crompton Greaves Consumer Electricals, Dixon Technologies (India), Inox Wind, Page Industries, Piramal Pharma, and Sapphire Foods India.
10. The technical prognosis for Nifty
The 50-day EMA zone between 25,730 and 25,700 is expected to serve as the index's immediate support zone, according to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.
"A persistent decline below this crucial short-term technical support level of 25,700 may cause the Nifty to drift lower, possibly reaching 25,500. The 20-day EMA zone between 25,950 and 26,000 is expected to serve as a significant barrier for the index on the upside, according to Shah.
The Nifty created a bearish candle on the daily chart, indicating weakness, according to Hrishikesh Yedve, AVP-Technical and Derivative Research, Asit C. Mehta Investment Intermediates.
"The Nifty's trend line support is located close to the 25,700 mark. The Nifty will move toward the 25,500–25,300 levels if there is a clear break below 25,700, according to Yedve.
"On the upside, the index will face significant obstacles at 26,000 and 26,325. Therefore, a sell-on-bounce strategy is recommended for short-term traders, according to Yedve.
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