Sensex and Nifty Performance Overview

The BSE Sensex closed at 85,399.06, down 313.31 points or 0.37% from the previous close. The index opened flat with a minor decline of 87.53 points and traded near the day's lows throughout the session. The Sensex remains approximately 0.88% below its 52-week high of 86,159.02, indicating some distance from recent peaks. Notably, the index is trading above its 50-day moving average (DMA), which itself is positioned above the 200 DMA, signalling that the medium-term trend remains intact despite the short-term weakness.

The Nifty index mirrored the Sensex's performance, with a broad-based decline across most sectors. The BSE 100 large-cap index fell by 0.42%, while the mid-cap and small-cap indices declined by 0.47% and 0.7% respectively. This suggests that the market weakness was not confined to a particular capitalisation segment but was rather widespread.

Sectoral Trends: IT Sector Leads Gains, Realty Faces Pressure

Out of 38 sectors tracked, only 4 advanced while 34 sectors declined, highlighting the breadth of the market's retreat. The NIFTY IT sector was the top-performing segment, registering a gain of 0.40%. This modest rise in IT stocks provided some cushion to the overall market, reflecting investor interest in technology companies amid global uncertainties.

Conversely, the Realty sector was the most significant laggard, falling by 1.47%. The sector's underperformance weighed on the broader indices, as concerns over demand and regulatory developments continue to influence investor sentiment. Other sectors such as consumer discretionary and industrials also faced selling pressure, contributing to the overall negative tone.

Top Gainers and Losers Across Market Capitalisations

Among large-cap stocks, Suzlon Energy emerged as the top gainer with a rise of 2.22%, bucking the broader trend of subdued trading in blue-chip stocks. In the mid-cap space, Nippon Life India Assurance recorded a gain of 2.65%, while SpiceJet led the small-cap segment with a notable advance of 11.54%, reflecting selective buying interest in specific names.

On the downside, InterGlobe Aviation was the largest decliner among large caps, falling 4.03%. Kaynes Technology and Amines & Plastics were the top losers in the mid-cap and small-cap categories, declining 4.33% and 6.70% respectively. These declines highlight the uneven performance within market segments, with certain stocks facing sharper corrections.

Market Breadth and Broader Indices

The advance-decline ratio across the BSE 500 index was notably weak, with only 97 advances against 401 declines, resulting in a ratio of 0.24x. This indicates a broad-based selling pressure across the market. The BSE 500 index's top gainers included Tata Investment Corporation (+5.12%), Latent View (+4.81%), and JSW Holdings (+4.19%), while the top losers featured Honasa Consumer (-4.49%), Kaynes Technology (-4.33%), and A B Real Estate (-4.10%).

Foreign and Domestic Institutional Activity

Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) exhibited cautious behaviour amid the mixed global environment. While detailed net inflow or outflow figures were not disclosed, the subdued market performance and broad-based declines suggest that institutional participants were largely on the sidelines or engaged in selective profit-taking. This restrained activity aligns with the current phase of consolidation after recent market gains.

Global Cues and Their Impact on Indian Markets

Global markets presented a mixed picture, with major indices in the US and Europe showing modest declines amid concerns over inflation and monetary policy tightening. Asian markets were similarly subdued, reflecting investor caution ahead of key economic data releases. These global factors contributed to the cautious tone in Indian equities, as investors weighed domestic fundamentals against external uncertainties.

Technical Observations and Market Outlook

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 positive despite the recent pullback. However, the current weakness and poor market breadth indicate that investors are digesting recent gains and awaiting clearer directional cues. The Nifty IT sector's relative strength may continue to attract interest as a defensive play amid volatility.

Conclusion

Indian equity markets on 8 December 2025 reflected a cautious mood with the Sensex and Nifty indices retreating amid broad-based selling pressure. The IT sector stood out as a relative outperformer, while the Realty sector faced notable declines. Market breadth was weak, with a significant number of stocks and sectors closing lower. Institutional investors appeared to adopt a wait-and-watch stance amid mixed global cues and domestic uncertainties. Technical indicators suggest that the market remains in a consolidation phase, with investors likely to monitor upcoming economic data and corporate earnings for clearer direction.

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