Sensex and Nifty Performance Overview

After opening nearly flat with a marginal dip of 87.53 points, the Sensex experienced a steady fall throughout the trading session, eventually settling 0.80% lower at 85,029.73. This level places the index approximately 1.33% below its 52-week high of 86,159.02. Despite the decline, the Sensex continues to trade above its 50-day moving average (DMA), which itself remains above the 200 DMA, signalling that the medium-term trend retains some underlying strength despite the current pullback.

The broader Nifty index mirrored this trend, reflecting the cautious sentiment prevailing among investors. Large-cap stocks traded largely flat, with only a few exceptions showing notable movement in either direction.

Sectoral Trends: Realty Sector Bears the Brunt

Among the 38 sectors tracked, none advanced during the session, with all sectors registering declines. The NIFTYREALTY sector was the most affected, falling by 3.94%, marking it as the top losing sector. This sharp decline in realty stocks weighed heavily on the overall market sentiment, reflecting concerns over sector-specific challenges and broader economic uncertainties.

Other sectors also faced selling pressure, contributing to the widespread market weakness. The lack of any advancing sectors underscores the cautious stance adopted by market participants amid mixed domestic and global cues.

Market Breadth and Capitalisation Segments

Market breadth was notably weak, with only 42 stocks advancing against 458 declining across the BSE500 index, resulting in an advance-decline ratio of just 0.09x. This lopsided ratio highlights the dominance of sellers in the market.

Capitalisation-wise, the BSE100 large-cap segment declined by 1.17%, mid-cap stocks fell by 1.98%, and small-cap stocks were down by 2.3%. The sharper declines in mid and small caps indicate that risk appetite remains subdued, with investors favouring relatively safer large-cap names despite the overall negative tone.

Top Gainers and Losers Across Market Caps

Despite the broad market weakness, a handful of stocks managed to post gains. Latent View emerged as the top gainer on the BSE500, rising by 7.71%, followed by SKF India Industries and 3M India, which gained 2.56% and 2.28% respectively. Among large caps, Tech Mahindra led the gains with a 1.19% rise, while 3M India was the top mid-cap gainer at 2.28%. In the small-cap space, Dredging Corporation stood out with a notable 12.13% increase.

On the downside, Kaynes Technology was the top loser in the mid-cap segment, falling 12.74%. Interglobe Aviation led the large-cap decliners with an 8.79% drop, while Tata Tele Mah. declined by 7.83%. Fino Payments was the most affected small-cap stock, down 11.17%. These steep losses in select stocks contributed to the overall negative market tone.

Foreign and Domestic Institutional Activity

Investor participation from foreign institutional investors (FIIs) and domestic institutional investors (DIIs) remained cautious. The subdued activity from these key market participants contributed to the lack of directional momentum. With global markets showing mixed signals, institutional investors appeared to adopt a wait-and-watch approach, limiting fresh inflows into Indian equities.

Global Cues and Their Impact

Global markets exhibited volatility amid ongoing concerns over inflationary pressures, interest rate policies, and geopolitical tensions. These factors influenced investor sentiment in India, as the domestic market is increasingly sensitive to global economic developments. The cautious tone in international equities and commodities markets translated into subdued buying interest locally, reinforcing the broad-based declines seen across sectors.

Technical Indicators and Market Outlook

From a technical perspective, the Sensex’s position above its 50-day moving average, which itself is above the 200-day moving average, suggests that the medium-term trend remains intact despite the recent pullback. However, the sharp decline in market breadth and the absence of advancing sectors indicate that near-term volatility may persist. Investors are likely to monitor upcoming economic data and corporate earnings closely for clearer directional cues.

Summary

The Indian equity market’s performance on 8 December 2025 was characterised by broad-based declines, with the Sensex retreating 0.80% and the Nifty reflecting similar weakness. The realty sector was the most affected, dragging down overall sentiment. Market breadth was heavily skewed towards declines, and mid- and small-cap stocks underperformed large caps. Select stocks such as Latent View, Tech Mahindra, and 3M India bucked the trend with gains, while others like Kaynes Technology and Interglobe Aviation faced steep losses.

Institutional investors remained cautious amid mixed global cues, contributing to subdued market activity. Technical indicators suggest the medium-term trend remains positive, but near-term volatility is likely to continue as investors await clearer signals from economic data and corporate earnings. Market participants are advised to monitor sectoral developments and global factors closely in the coming sessions.

Limited Time Only! Upgrade now and get 1 Year of Stock of the week worth Rs. 14,999 for FREE. Don't miss out on this exclusive offer. Claim Your Free Year →