Sensex and Nifty Performance Overview

The BSE Sensex opened the day flat but gradually moved into negative territory, trading at 84,343.53, down by 0.26% or 41.32 points from the previous close. The index remains approximately 2.15% below its 52-week high of 86,159.02, indicating some distance from recent peaks. Notably, the Sensex is currently positioned below its 50-day moving average (DMA), a technical indicator often watched by market participants. However, the 50DMA itself is above the 200DMA, suggesting that the medium-term trend remains intact despite short-term weakness.

The Nifty index mirrored this trend, with the Sensex trading at 84,334.76, reflecting a loss of 224.89 points or 0.27%. This decline signals cautious investor sentiment amid mixed domestic and global factors.

Sectoral Trends: IT Sector Leads, Auto Faces Pressure

Out of 38 sectors tracked on the BSE, only four sectors recorded gains, while 34 sectors declined, highlighting broad-based selling pressure. The NIFTY IT sector stood out as the top gainer, advancing by 0.63%, buoyed by steady demand for technology stocks amid ongoing digital transformation trends. In contrast, the automobile sector faced the steepest losses, falling by 1.54%, weighed down by concerns over input costs and subdued demand outlook.

Other sectors largely followed the downward trajectory, reflecting a cautious mood among investors ahead of key corporate earnings and global economic data releases.

Market Breadth and Capitalisation Segments

The market breadth was notably weak, with the advance-decline ratio across the BSE500 standing at 55 advances against 442 declines, a ratio of just 0.12x. This imbalance underscores the dominance of selling pressure across most stocks.

Capitalisation-wise, the BSE100 large-cap index declined by 0.38%, the mid-cap index fell by 0.79%, and the small-cap index dropped by 1.01%. The sharper declines in mid and small caps suggest risk aversion among investors, who may be favouring larger, more stable companies amid uncertain conditions.

Top Gainers and Losers Across Market Caps

Among the BSE500 stocks, Nippon Life India emerged as the top mid-cap gainer, advancing by 5.17%. HDFC AMC led the large-cap gainers with a rise of 4.67%, while UTI AMC also featured among the top performers with a 2.82% gain. In the small-cap segment, Antony Waste Handling recorded a significant jump of 15.97%, reflecting strong investor interest in niche sectors.

On the downside, PTC Industries declined by 4.02%, IOCL (Indian Oil Corporation Limited) fell by 3.78%, and Siemens Energy India dropped by 3.73%. Among large caps, IOCL was the top loser, while Ola Electric and Amines & Plastics were the leading decliners in the mid and small-cap categories, falling by 3.25% and 6.93% respectively.

Institutional Activity and Global Influences

Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) remained active, with their trading patterns influencing market direction. The cautious stance of FIIs amid global uncertainties, including concerns over inflation and central bank policies in major economies, contributed to subdued buying interest. Meanwhile, DIIs maintained selective participation, focusing on sectors with stable earnings prospects.

Global cues also played a role in shaping market sentiment. Asian markets showed mixed performances, while European indices were subdued ahead of key economic data releases. The US markets closed lower overnight, pressured by concerns over interest rate trajectories and corporate earnings outlooks. These factors collectively weighed on investor confidence in Indian equities.

Technical Observations and Outlook

Technically, the Sensex trading below its 50DMA suggests short-term resistance, although the 50DMA remaining above the 200DMA indicates that the broader trend is still positive. Investors may watch for a sustained move above the 50DMA to confirm renewed momentum. The current proximity to the 52-week high, just over 2% away, highlights the potential for upside if market conditions improve.

Sector rotation appears evident, with defensive and technology stocks attracting interest, while cyclical sectors like automobiles face pressure. This rotation may continue as investors weigh global economic developments and domestic corporate earnings.

Upcoming Corporate Earnings to Watch

Market participants are also preparing for upcoming corporate results, including Sudeep Pharma, which is scheduled to announce its earnings on 19 Dec 2025. Such results could provide fresh catalysts for sectoral and stock-specific movements in the near term.

Conclusion

The Indian equity market on 18 Dec 2025 reflected a cautious stance with the Sensex and Nifty indices trading lower amid broad-based declines. The IT sector’s relative strength contrasted with weakness in the automobile and energy sectors. Market breadth remained weak, and mid and small caps experienced sharper declines compared to large caps. Institutional activity and global economic factors continue to influence market dynamics. Investors may look for confirmation of technical support levels and monitor upcoming earnings announcements to gauge the market’s next direction.

Only Rs. 14,999 - Get MojoOne + Stock of the Week for 1 Year PLUS 18 Months FREE! Start Saving Now →