Mumbai, December 17, 2025: Indian equities ended marginally lower for the third consecutive session, with benchmark indices struggling to extend early gains as investors weighed persistent foreign outflows, a still-fragile rupee narrative, and a lack of fresh clarity on India–U.S. trade negotiations. [1]
Market close: Sensex, Nifty edge lower; broader market remains under pressure
By the closing bell on Wednesday:
- BSE Sensex: 84,559.65, down 120.21 points (-0.14%)
- NSE Nifty 50: 25,818.55, down 41.55 points (-0.16%)
- Nifty Bank: 58,926.75, down 107.85 points (-0.18%)
- BSE Midcap: down about 0.6%; Smallcap: down nearly 1%
- Market breadth: roughly 1,326 advances vs 2,498 declines (with 144 unchanged) [2]
Reuters noted the benchmarks are down about 0.9% across three sessions, highlighting how the market has remained in “wait-and-watch” mode despite only mild single-day losses. [3]
Why the market fell today: 4 drivers investors tracked most closely
1) Foreign selling keeps sentiment cautious
A key overhang remains the pace and persistence of foreign selling. Reuters reported foreign investors sold Indian equities worth 130.5 billion rupees over eight sessions through Tuesday, with $1.92 billion in net selling so far in December. [4]
That backdrop matters because it can cap rallies even when domestic flows and fundamentals remain supportive—especially in heavyweight sectors like financials.
2) Rupee volatility and the “RBI factor” stayed in focus
After hitting record lows in recent sessions, the rupee rebounded on Wednesday. Moneycontrol reported the rupee closed higher at 90.37 per dollar, up 66 paise from 91.03. [5]
Behind the move was a clear signal: Reuters said the Reserve Bank of India intervened aggressively, selling dollars to counter a one-way slide in the currency; the rupee jumped to an intraday high of 89.75 from near 91.00 before settling off those highs. [6]
This matters for equities because rupee stability can:
- reduce imported inflation anxiety,
- support rate-sensitive sectors, and
- improve risk appetite when global flows are already cautious.
3) India–U.S. trade-deal headlines remain a risk trigger
Both Reuters and domestic market wraps pointed to limited clarity on an India–U.S. trade deal as a continuing overhang. [7]
A separate Reuters analysis framed the trade uncertainty as a broader macro headwind for Indian assets, noting the rupee has weakened meaningfully in 2025 and that investor confidence is sensitive to when—or if—tariff relief and a durable agreement emerge. [8]
4) Global cues: Fed path uncertainty keeps risk-taking measured
Market participants also tracked mixed signals from U.S. jobs data and what it implies for the Federal Reserve’s rate outlook, with several reports linking this uncertainty to cautious risk sentiment. [9]
Sector check: PSU banks outperform; media and rate-sensitive pockets lag
Sector performance was mixed, but leadership was narrow:
- Nifty PSU Bank rose around 1.2%, standing out as the key outperformer. [10]
- Media was the sharpest laggard, down about 2%. [11]
- Several other sectors—including private banks, realty, consumer durables, FMCG, and healthcare—finished lower in the 0.4%–1% range. [12]
Reuters added that 11 of 16 major sectors ended in the red, underscoring that the decline was broader than the benchmark moves might suggest. [13]
Top gainers and losers on Nifty 50 today
Top gainers (Nifty 50):
Shriram Finance, SBI, Eicher Motors, Hindalco Industries, Tata Consumer [14]
Top losers (Nifty 50):
Max Healthcare, SBI Life Insurance, HDFC Life, Trent, Apollo Hospitals [15]
Moneycontrol’s session data also flagged Shriram Finance as the “biggest gainer” (up about 1.86%) and Max Healthcare as the “biggest loser” (down about 3.90%). [16]
Stocks in focus: what moved individual names on Dalal Street
Several single-stock moves drew attention beyond the index:
- HDFC Bank and ICICI Bank weighed on the tape; Reuters noted both fell about 1%, contributing to weakness in heavyweight financials. [17]
- Indian Overseas Bank fell after news the government planned to sell up to a 3% stake at a floor price of ₹34/share, per Reuters’ morning market report. [18]
- Akzo Nobel India slumped sharply (-13.6%) after multiple block deals, with reports indicating the promoter was looking to sell a stake. [19]
- Meesho surged (+20%), with Reuters attributing the rally to UBS initiating coverage with a “buy” rating; the stock was described as nearly doubling in about a week since listing. [20]
IPO and listings watch: fresh debuts add to the day’s action
Listings also stayed on traders’ radars:
- Nephrocare Health Services ended up about 2.5%, after listing at a premium to its IPO price, according to Moneycontrol. [21]
- Park Medi World ended down about 8.6% after a weak debut, Moneycontrol reported. [22]
Market mood check: a “range” session hiding weak breadth
Even with a relatively small decline in headline indices, internal indicators suggested caution:
- Moneycontrol highlighted that more than 180 stocks hit 52-week lows, pointing to ongoing stress in parts of the broader market. [23]
- Several market commentaries described the day as volatile-to-rangebound, where late buying in select names offset pressure from banking heavyweights and ongoing foreign selling. [24]
Nifty and Bank Nifty outlook: key technical levels traders are watching
Nifty 50: support at 25,700; resistance near 26,000
From the post-close technical commentary carried by Moneycontrol, analyst Rupak De (LKP Securities) flagged:
- Downside trigger: a decisive break below 25,700 could open the door toward 25,500–25,400
- Immediate resistance: 25,950–26,000 zone [25]
Bank Nifty: trendline break raises caution; key levels: 58,500 and 59,300
Moneycontrol’s live coverage also highlighted a cautious setup for Bank Nifty:
- Support: 58,600–58,500 (a break below 58,500 may drag it toward 58,000)
- Resistance: 59,200–59,300 [26]
Derivatives cue: tight band around 25,800–25,900
Ahead of the session, LiveMint’s pre-market setup noted significant options positioning:
- heavy call writing around 25,900 and
- strong put open interest near 25,800, implying a near-term band unless a fresh catalyst breaks the range. [27]
What to watch next: the near-term triggers for Indian markets
Looking beyond today’s close, the market’s next directional move is likely to depend on a few headline-sensitive variables:
- Rupee trajectory and RBI stance — traders are watching whether RBI action keeps USD/INR from slipping back into a one-way depreciation phase. [28]
- FII flow trend — any slowdown in selling (or a flip to buying) can quickly change market tone, especially in banks and index heavyweights. [29]
- India–U.S. trade headlines — clarity, timelines, or tariff-related updates remain key swing factors for risk appetite. [30]
- U.S. macro data and the Fed outlook — markets remain sensitive to signals that shift global rate expectations. [31]
Bigger picture: 2026 targets are turning bullish—but with an earnings caveat
While today’s session reflected caution, longer-range forecasts published today leaned constructive.
NDTV Profit’s roundup of major brokerage targets suggested a broad bullish band for 2026:
- Sensex targets: 94,000 (HSBC) and 95,000 (Morgan Stanley)
- Nifty targets: 28,300 (Jefferies), 29,000 (Bank of America), 29,300 (Nomura), and 30,000 (JPMorgan—most bullish) [32]
But the same roundup underscored an important qualifier: with valuations elevated, some strategists expect upside to be earnings-led, not multiple-led. [33]
Separately, Moneycontrol’s look-back on 2025 targets noted that in 2024, brokerages projected a broad 2025 year-end range, with cautious houses pegging Nifty around 26,100 and optimistic calls stretching higher—illustrating how much the index’s path can depend on earnings delivery and macro surprises. [34]
Bottom line (Dec 17, 2025): Dalal Street closed modestly lower, but the day’s real story was the combination of weak breadth, foreign-flow caution, and a market that is highly sensitive to rupee stability and trade-deal headlines. With Nifty still hovering near key supports and resistance clustered around 26,000, the next strong move may require a fresh trigger—either on global rates, currency, or flows. [35]
References
1. www.reuters.com, 2. www.moneycontrol.com, 3. www.reuters.com, 4. www.reuters.com, 5. www.moneycontrol.com, 6. www.reuters.com, 7. www.reuters.com, 8. www.reuters.com, 9. www.moneycontrol.com, 10. www.moneycontrol.com, 11. www.moneycontrol.com, 12. www.moneycontrol.com, 13. www.reuters.com, 14. www.moneycontrol.com, 15. www.moneycontrol.com, 16. www.moneycontrol.com, 17. www.reuters.com, 18. www.reuters.com, 19. www.reuters.com, 20. www.reuters.com, 21. www.moneycontrol.com, 22. www.moneycontrol.com, 23. www.moneycontrol.com, 24. www.moneycontrol.com, 25. www.moneycontrol.com, 26. www.moneycontrol.com, 27. www.livemint.com, 28. www.reuters.com, 29. www.reuters.com, 30. www.reuters.com, 31. www.reuters.com, 32. www.ndtvprofit.com, 33. www.ndtvprofit.com, 34. www.moneycontrol.com, 35. www.moneycontrol.com
