Stock Market Today Highlights: Sensex ends 500 points lower, Nifty below 26,900; Axis, Reliance top drags

Vinod Nair, Head of Research, Geojit Investments Limited, said, "Continued INR weakness to fresh record lows, driven by persistent FII outflows and subdued global sentiments, dragged domestic markets into negative territory. Small and mid-caps lagged large caps, with IT, metals, banking, and realty leading losses, while consumption stocks offered limited support. Volatility is expected to remain elevated amid currency fluctuations and uncertainty over foreign inflows. Progress on the US–India trade deal and rupee stabilisation will be critical, while softer commodity prices and improving earnings visibility provide a constructive medium-term backdrop."

Barring Nifty Media, all major sectoral indices closed with cuts. Nifty Media index rose 0.03%. Meanwhile, Nifty Realty tanked 1.29% and Nifty Private Bank 1.23%. IT, metals and PSU Bank indices also remained key losers.

The losses were visible in the broader market as well. BSE Midcap index shed 0.78% and the BSE Smallcap index lost 0.69%, underperforming Sensex.

Titan, Airtel emerged as leaders on BSE today while Axis Bank, Eternal and HCL Tech were the biggest losers.

Indian benchmark indices, BSE Sensex and NSE Nifty, ended Tuesday's trade in the red, shedding over 0.60% each. The Sensex ended at 84,679.86, down 533.50 points or 0.63%. Meanwhile, Nifty 50 settled at 25,860, down 167.20 or 0.64%.

Vedanta share price rallied 4% following media reports that the Mumbai-based NCLT has approved the demerger plan that was long in the works.

India Ratings, vide its press release dated December 15, 2025, has placed the ‘AA’ rating on the long-term issuer rating and non-convertible debentures on ‘Rating Watch with Positive Implications’.

The Rating Watch with Positive Implications follows JSWL’s announcement on December 3, 2025, that its board approved the formation of a strategic joint venture (JV) between Japan-based JFE Steel Corporation (JFE) and its step-down subsidiary, Bhushan Power and Steel Limited (BPSL), for the crude steel business with a planned capacity of 4.5 million tonnes per annum (mtpa).

The transaction is expected to generate total cash inflows of around ₹320 billion for JSWL and reduce net debt by about ₹50 billion through the deconsolidation of BPSL, resulting in an overall net debt reduction of approximately ₹370 billion at JSWL.

India Ratings (Ind-Ra) believes the transaction will result in the forgoing of BPSL’s capacity, around 10% of JSWL’s consolidated EBITDA (BPSL’s share), alongside a reduction in consolidated debt of about ₹370 billion. This is expected to strengthen JSWL’s credit profile over FY26–FY27, with consolidated net leverage (including acceptances) declining by around 1x.

JSW Steel stock was trading 2% lower.

Barring Nifty FMCG, all major sectoral indices on the NSE traded with cuts. Nifty Realty, Nifty Private Bank, Nifty Metal and Nifty IT were the worst hit, shedding 1-1.5% each. At the same time, the Nifty FMCG index was up 0.04%.

Nifty Bank was also down 0.76%while Nifty PSU Bank shed 0.95% in the afternoon trade.

The smallcase managers note that at the start of 2025, the strong ~18% CAGR delivered over the previous five years has fostered unrealistic return expectations. Though further market conditions offer a lesson to investors to avoid extrapolating recent performance into future expectations. They highlight that rather than focusing on “hot” sectors, emphasis should remain on valuation discipline, as even high-quality businesses can generate poor outcomes when bought at the wrong price.

Chasing popular narratives or crowded trades often leads to underperformance, with investors entering themes after valuations have already peaked.

The managers call for investors to have a well-diversified portfolio across asset classes, styles and sectors to navigate volatility and compound wealth steadily over time. They note that investment success should be measured against one’s own goals and risk appetite, not against others who operate under very different constraints.

The Board of Directors of Zaggle Prepaid Ocean Services Limited (the Company), at its meeting today, i.e., December 16, 2025, has approved the incorporation of a wholly owned subsidiary of the Company in GIFT City, Gujarat, under the name Zaggle Payments IFSC Limited.

The proposed authorised share capital of the WOS is ₹15,00,000, divided into 1,50,000 equity shares of ₹10 each.

Following the update, Zaggle Prepaid share price was up 3% despite Indian stock market weakness.

BL Kashyap and Sons shares rose despite stock market weakness as the company secured a major new order from Sattva CKC Private Limited. The project, valued at Rs. 615.69 crore (exclusive of GST), involves the execution of structural and civil works for a large-scale commercial development — Sattva Chennai Knowledge City — located in Chennai, Tamil Nadu.

Independent market expert Sandip Sabharwal said that bears in India got saved due to tariffs; if tariffs reverse, he believes sharp recovery in rupee and market.

Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said, "Further sharp weakness in the rupee was not expected today since the November trade data has come better-than-expected. Covering of short positions may be a factor in today’s decline. Sustained FII selling is acting like a vicious cycle, pulling the rupee down.

Normally, when rupee declines, the RBI intervenes by selling dollars to stem the decline of the rupee. But recently, the RBI’s policy has been to let the currency decline. Low inflation in India ( 0.71% in November ) is the reason for this non-intervention by the central bank. Rupee depreciation is not hurting the economy.

India’s November trade deficit declining to $24.53 billion from 41.68 billion in October is positive for the rupee.

RailTel Corporation rose marginally despite stock market crash on procurement of comprehensive AMC services for servers, storages, network & network security devices with renewal of licenses. The order size is ₹148.39 crore. The order is to be completed by December 21, 2030.

The Indian rupee plunged 36 paise to breach the 91-mark against the US dollar for the first time in intra-day trade on Tuesday, weighed down by sustained FII outflows and a lack of clarity on the India-US trade deal. The rupee fell from 90 a dollar to 91 in the last 10 trading sessions.

Midcap and smallcap indices also faced severe losses. BSE Midcap index was down 0.74% today and BSE Smallcap index lost 0.56% today. At the same time, BSE Sensex was down 0.59%.

SEPC, a penny stock jumped 4%, after bagging a work order received from M/s. Vishnu Prakash R. Punglia Limited on a subcontract basis for a railway infrastructure project, with a total value of ₹269 crore, in connection with the Ajmer–Chanderiya Doubling Project of the Ajmer Division, North Western Railway.

Shares of one of the biggest private sector lenders in Indian stock market — Axis Bank — plunged 4% today after the bank's management said that its NIMs will now bottom either in Q4 or Q1FY26 Vs earlier guidance of Q3.

Asian stocks tumbled while the dollar drifted near two-month lows on Tuesday as investors adopted a cautious approach ahead of a slate of U.S. data, including the jobs report, that may help gauge the trajectory for Federal Reserve policy next year, according to a Reuters report.

In equity markets, MSCI's broadest index of Asia-Pacific shares outside Japan was down 1% in early trading. Tokyo's Nikkei and South Korea's benchmark index both fell over 1%. Nasdaq futures and European futures fell 0.5%, pointing to wobbles at the open.

Meesho share price jumped to an all-time high of ₹193.50 on the BSE today, surging 13% over its last closing price of ₹170.75 on the BSE. Meanwhile, from its IPO price, the stock has jumped over 70%.

Sensex extended losses in trade today, falling nearly 450 points. Persistent foreign fund outflows and weak global market trends dented investors' sentiment.

As yesterday, we will persist with expectations of continuation of uptrend. However, being at the upper extreme of the declining parallel trendline, a turn lower is an equally likely event, prompting us to have a watchful eye on 25900. Expect consolidation early in the day, in the 26000-25970 vicinity, followed by attempts to push higher.

— Anand James, Chief Market Strategist, Geojit Investments Limited.

Shares of Ion Exchange India surged 8% in intraday deals on Tuesday following an order win worth ₹205 crore.

“We wish to inform you that the Company has been awarded contracts from Rayzon Energy Private Limited and INOX Solar Limited, respectively, for Ultra-Pure Water System / ETP / ZLD, aggregating to approximately INR 205 crores for ultrapure water and wastewater treatment projects,” the company said in a filing.

Only 14 of the 50 Nifty stocks traded in the green today.

The Indian rupee slipped to an all-time low for the fourth consecutive session on Tuesday. The rupee slipped to an all-time low of 90.82, eclipsing its previous record low of 90.7875 hit on Monday.

The market is moving into a consolidation mode in the near-term. Since sustained FII selling is easily getting absorbed by DII buying and economic fundamentals are indicating significant improvement, the market will find support on weakness. Rupee also is likely to stabilise since November trade deficit has come down to $ 24.53 billion from $ 41.64 billion in October. This will take away some pressure on the FIIs to sell anticipating further depreciation.

The weakening of the AI trade continues in the US. Chances are that at some point in 2026, AI trade will weaken significantly facilitating capital flows into EMs like India. However, if the market is to show sustained strength, earnings recovery is essential. Q3 numbers will indicate where earnings recovery is happening. Bank Nifty will continue to be strong.

— Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

Indian benchmark indices Sensex and Nifty opened in the red amid broad-based selloff. Majority of Nifty 50 and Sensex stocks traded lower, signalling profit taking.