Sensex and Nifty Performance Overview

The BSE Sensex opened the session flat with a marginal dip of 87.53 points but soon succumbed to selling pressure, closing at 84,954.12, down 670.72 points or 0.88%. The index remains 1.42% below its 52-week high of 86,159.02. Similarly, the Nifty 50 index mirrored this weakness, with large caps trading mostly flat but ultimately ending the day in negative territory.

Technical indicators show the Sensex trading above its 50-day moving average (DMA), which itself is positioned above the 200 DMA, suggesting that despite the current pullback, the medium-term trend remains intact. However, the sharp intraday fall indicates near-term volatility and investor caution.

Sectoral Trends: Realty Sector Under Pressure

Market-wide weakness was evident as all 38 sectors declined, with the NIFTYREALTY sector leading losses, falling by 3.76%. This sectoral underperformance weighed heavily on the broader indices, reflecting concerns over real estate valuations and liquidity conditions. Other sectors also faced selling pressure, contributing to the overall negative market tone.

Market Breadth and Capitalisation Segments

The advance-decline ratio across the BSE 500 index was severely skewed, with only 40 stocks advancing against 461 declining, resulting in a ratio of 0.09x. This lopsided breadth highlights the pervasive selling sentiment among investors.

Capitalisation-wise, the BSE 100 large caps fell by 1.16%, mid caps declined by 1.82%, and small caps were the worst hit, down 2.25%. This pattern suggests that smaller companies faced greater selling pressure, possibly due to higher perceived risk or liquidity concerns.

Top Gainers and Losers Across Market Caps

Despite the broad sell-off, a few stocks managed to buck the trend. Among the BSE 500, Latent View Technologies led the gainers with a rise of 6.91%, followed by Tata Investment Corporation at 3.04%, and 3M India at 1.94%. These stocks showed resilience amid the market weakness, possibly supported by sector-specific factors or company-specific developments.

On the downside, Kaynes Technology was the top loser, falling 10.06%, followed by Honasa Consumer at 7.91%, and Tata Tele Mah at 7.49%. These declines reflect sectoral headwinds and profit-booking pressures.

Breaking down by market capitalisation, PB Fintech was the top large cap gainer, up 1.37%, while Interglobe Aviation was the largest large cap loser, down 7.42%. In the mid cap space, 3M India gained 1.94%, whereas Kaynes Technology declined 10.06%. Among small caps, Matrimony.com surged 11.29%, contrasting with Hindustan Construction’s 9.53% fall.

Foreign Institutional and Domestic Institutional Activity

Investor participation from foreign institutional investors (FIIs) and domestic institutional investors (DIIs) remained subdued amid the cautious market mood. While detailed net inflow or outflow figures are not available for the day, the broad-based decline and weak market breadth suggest that selling pressure from FIIs may have contributed to the negative momentum. DIIs typically act as a counterbalance during such phases, but their activity appeared insufficient to offset the selling.

Global Cues and Their Impact

Global markets showed a cautious stance on 8 December 2025, with major indices in Asia and Europe reflecting mixed to negative performances. Concerns over geopolitical tensions, inflationary pressures, and central bank policies continued to weigh on investor sentiment worldwide. These external factors influenced the Indian markets, which are increasingly sensitive to global economic developments and foreign capital flows.

Technical and Market Outlook

The Sensex’s position above the 50 DMA, which itself is above the 200 DMA, indicates that the medium-term uptrend remains intact despite the current correction. However, the sharp decline of over 670 points and the weak advance-decline ratio signal near-term volatility and caution among market participants. Investors may look for signs of stabilisation in sectoral performances and improved breadth before committing fresh capital.

Summary

The Indian equity markets on 8 December 2025 experienced a broad-based decline with the Sensex closing near 85,000 levels, down by nearly 0.9%. The NIFTYREALTY sector was the most affected, dragging the overall market lower. Market breadth was weak, with a significant majority of stocks declining across large, mid, and small cap segments. While a handful of stocks such as Latent View Technologies and Matrimony.com showed resilience, the overall tone remained cautious amid subdued global cues and investor uncertainty.

Investors are advised to monitor technical levels closely and watch for signs of sectoral recovery or improved breadth before increasing exposure. The current market environment underscores the importance of selective stock picking and a focus on companies with strong fundamentals and consistent performance.

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