The Indian stock market witnessed a broad-based selling during Monday’s session, December 8, a day after the RBI trimmed the key benchmark rate by another 25 basis points. Although domestic fundamentals remain in favour of bulls, profit booking dragged the markets lower, bringing the key indices to close below key levels.
The Nifty 50 closed with a sharp decline of 0.86%, slipping below the 26,000 mark to settle at 25,960, while the S&P BSE Sensex ended 0.71% lower at 85,102 points. The broader market came under more pressure, with the Nifty Midcap 100 falling 2% and the Nifty Smallcap 100 index crashing 2.6%.
Realty stocks led the declines, with all constituents of the Nifty Realty index closing down by up to 5.3%, pushing the index to shed 3.5%, marking its biggest single day fall since July 2025.
State-owned banks also witnessed heavy losses, with the Nifty PSU Bank index plunging nearly 3% to 8,144, its second-biggest single-day drop in December so far, taking it 6% below recent highs.
Other key indices, including Nifty Metal, Nifty Consumer Durables, Nifty Pharma, Nifty Auto, and Nifty FMCG, all fell over 1%.
Meanwhile, FPIs have begun the December series on a weak note, pulling out ₹11,820 crore through exchanges in the first week of December, according to exchange data. Experts believe the sharp depreciation of the Indian rupee has prompted overseas investors to trim their holdings, while uncertainty over a trade deal with the US has further impacted sentiment.
This has turned them bearish again on local equities after a mild pause in the second half of November, even as AI valuations globally remain elevated.
Heavy selling batters key stocks across sectors
Kaynes Technology share price came under another round of selling pressure, falling 12.6% to settle below ₹4,000 at ₹3,807 apiece, the lowest level since April 2025.
IndiGo shares also closed with a sharp loss of 8.3% to ₹4,923 apiece after major brokerage firms lowered their target prices as the airline continues to face significant disruptions.
Honasa Consumer was another top laggard today as the stock lost 7% of its value to ₹256.3 apiece, while Engineers India, Aegis Vopak Terminals, Godrej Properties, Poonawalla Fincorp, Bharat Dynamics, Neuland Laboratories, PG Electroplast, Prestige Estates Projects, BLS International Services, Bharat Electronics, Mazagon Dock Shipbuilders, and Punjab National Bank all closed with losses of up to 5%.
Both Reliance Power and Reliance Infrastructure closed 5% lower after the Enforcement Directorate (ED) filed a chargesheet against the company and 10 others in a money laundering case.
Vodafone Idea shares finished 5% lower at ₹10.30 apiece, ending their four-day winning run, and Ola Electric remained under selling pressure for the seventh session in a row, slipping 4% to a record low of ₹34.10. The latest crash has brought the stock to a 52% drop in just three months.
Select stocks defy market sell-off, Latent View shines
Although the Indian stock market closed with steep losses, some stocks managed to stay afloat, led by Latent View Analytics, which surged 10.3% to ₹497 apiece. Home First Finance Company and 3M India also closed higher, each gaining 2.2%.
Other stocks such as Niva Bupa Health Insurance, Jindal Stainless, Transformers & Rectifiers, Can Fin Homes, Tech Mahindra and PB Fintech also finished with gains of over 1%.
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