Sensex falls 600 points, Nifty 50 ends below 26k; mid, small-caps bleed— 10 key highlights from Indian stock market

The Indian stock market ended with deep cuts on Monday, 8 December, as investors sold stocks across segments amid mixed global cues. The Sensex closed 610 points, or 0.71%, lower at 85,102.69, while the Nifty 50 settled at 25,960.55, down 226 points, or 0.86%. The BSE Midcap and Smallcap indices crashed 1.73% and 2.20%, respectively.

Investors lost more than ₹7 lakh crore in a single session as the cumulative market capitalisation of the firms listed on the BSE dropped to nearly ₹463.6 lakh crore from ₹471 lakh crore in the previous session.

Indian stock market: 10 key highlights from the day

1. Why did the Indian stock market fall today?

The main factors behind the market fall include weakness in the Indian rupee, relentless foreign capital outflow, caution ahead of the US Fed's policy decision, and the surge in Japanese bond yields.

The rupee fell below the 90 mark again and traded near the record low level. A spike in Japanese bond yields stoked fears of unwinding the yen carry trade.

"The market experienced a broad-based decline, slipping below the 26,000 mark as investors turned cautious ahead of this week’s Fed policy decision," said Vinod Nair, Head of Research, Geojit Investments Limited.

"Despite robust domestic growth figures and the RBI’s recent rate cut, short-term sentiment remains overshadowed by global monetary policy concerns, persistent FII outflows, and currency depreciation. Volatility was further amplified by a surge in Japanese bond yields to multi-year highs, sparking fears of a potential unwinding of the yen carry trade," Nair said.

2. Only 3 stocks end in the green in the Nifty

Tech Mahindra (up 1.22%), Wipro (up 0.35%), and HCL Technologies (up 0.12%) ended as the top gainers.

3. Top losers in the Nifty 50 index

Shares of InterGlobe Aviation (IndiGo) (down 8.62%), BEL (down 4.92%), and JSW Steel (down 3.71%) ended as the top losers in the index.

4. Sectoral indices today

Each sectoral index ended with losses, with Nifty Realty (down 3.53%), PSU Bank (down 2.81%), Media (down 2.73%), and Metal (down 1.92%) experiencing significant declines. Nifty Bank fell 0.90%, while the Financial Services index dropped 0.70%.

5. Most active stocks in terms of volume

Vodafone Idea (84.80 crore shares), Filatex Fashions (15.23 crore shares), and Suzlon Energy (9.75 crore shares) were the most active stocks in terms of volume on the NSE.

6. 13 stocks jump more than 10% on BSE

Kesoram Industries, Latent View Analytics, Rolex Rings, Dredging Corporation of India, and Brijlaxmi Leasing and Finance were among the 13 stocks that surged more than 10% on the BSE.

7. Advance-decline ratio

Out of 4,485 stocks traded on the BSE, 950 advanced, while 3,348 declined. Some 187 stocks remained unchanged.

8. Nearly 90 stocks hit 52-week highs

Some 88 stocks, including SKF India (Industrial), PTC Industries, National Aluminium Company, MCX, and Hindustan Copper, hit their 52-week highs in intraday trade on the BSE.

9. Over 500 stocks hit 52-week lows

As many as 527 stocks, including PFC, REC, and Trent, hit their 52-week lows on the BSE.

10. Nifty's technical outlook

According to Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, the zone of 25,850–25,800, which coincides with the previous swing low, is likely to act as an important support zone for the index.

"Any sustained move below 25,800 could lead to Nifty drifting further down, potentially taking it lower towards 25,650, followed by 25,500. On the upside, the zone of 26,150-26,200 is likely to act as a strong resistance for the index," said Shah.

Rupak De, Senior Technical Analyst at LKP Securities, noted that the Nifty 50 slipped back after the monetary policy day optimism, breaking below the 26,000 support level.

De highlighted that the index has now closed below the 21 EMA for the first time in many days, indicating a weakening trend. Supporting this view, the RSI has once again turned into a bearish crossover.

"Adding to the negative setup, Nifty registered its lowest closing in nine days, highlighting broader weakness, while India VIX also witnessed a spike. The sentiment looks weak in the short term, with the index potentially sliding towards 25,730. On the higher side, resistance is placed at 26,000–26,100," said De.

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