BSE IPO

Market failed to build on the opening gains and ended on a negative note for the third straight session on December 17 amid mixed global markets post sluggish US jobs data, persistent FII outflow and falling rupee amid delay in ‍potential India-US trade deal.

At close, the Sensex was down 120.21 points or 0.14 percent at 84,559.65, and the Nifty was down 41.55 points or 0.16 percent at 25,818.55. BSE Midcap index fell 0.6%, while smallcap index shed nearly 1%.

After hitting fresh record low in the previous session the Indian rupee appreciated today, snapping five-day losing streak, to closed higher by 66 paise at 90.37 against Tuesday's close of 91.03

Also Read: E<a href="https://www.moneycontrol.com/news/india/eight-of-top-10-conglomerates-deliver-positive-returns-in-2025-reliance-bharti-aditya-birla-group-lead-gains-tata-itc-decline-13729051.html">ight of top 10 conglomerates deliver positive returns in 2025; Reliance, Bharti, Aditya Birla Group lead gains, Tata, ITC decline</a>

Shriram Finance, SBI, Eicher Motors, Hindalco Industries, Tata Consumer were among top gainers on the Nifty, while losers included Max Healthcare, SBI Life Insurance, HDFC Life, Trent, Apollo Hospitals.

Among sectors, PSU Bank index added 1.2%, while media index shed 2%, while Private Bank, Realty, Consumer Durables, FMCG, Healthcare were down 0.4-1%.

Also Read: <a href="https://www.moneycontrol.com/news/business/ipo/icici-prudential-amc-ipo-allotment-date-today-how-to-check-status-online-via-registrar-nse-bse-check-latest-gmp-13728325.html">ICICI Prudential AMC IPO allotment date today: How to check status online via registrar, NSE &amp; BSE; Check latest GMP</a>

In stock-specific action, Akzo Nobel shares slipped more than 13% on 51.9 lakh shares block deal, Meesho shares surged 20% after UBS initiates ‘buy’ rating, Indian Overseas Bank shares fell 6% after government to sell up to 2% stake in the bank, Shriram Finance shares gained 2% as board meeting scheduled ⁠on December 19, Apeejay Surrendra Park shares added 1% on acquiring 100% stake of THALI Hotels.

Also Read - <a href="https://www.moneycontrol.com/news/business/rbi-steps-in-aggressively-to-boost-struggling-rupee-traders-say-13729312.html">RBI steps in aggressively to boost struggling rupee, traders say</a>

More than 180 stocks hit 52-week low, including Tejas Networks, Cohance Life, BASF, Sapphire Foods, Jubilant FoodWorks, Ramkrishna Forging, HFCL, Sanofi India, United Breweries, Bata India, NCC, KNR Construction, Blue Dart, ACC, Mankind Pharma, REC, Page Industries, Sheela Foam, among others. <a href="https://www.moneycontrol.com/stocks/market-stats/52-week-low-bse/?indexName=BSE%2520500&amp;id=12">Click to View More</a>

New Listings

The shares of Nephrocare Health Services ended with 2.5% gain <a href="https://www.moneycontrol.com/news/business/ipo/nephrocare-health-services-shares-list-at-7-premium-to-ipo-price-13729140.html">after listed with a premium of 6.52 percent</a> over the IPO price of Rs 460 per share.

After making a <a href="https://www.moneycontrol.com/news/business/ipo/park-medi-world-shares-make-weak-market-debut-list-at-4-discount-to-ipo-price-on-bse-13729198.html">weak market debut</a> at Rs 155.60 with a discount of 3.95 percent over the IPO price of Rs 162, Park Medi World shares ended lower by 8.6% at Rs 148 per share.

Outlook for December 18

Rupak De, Senior Technical Analyst at LKP Securities

Nifty has remained in the bears’ grip, as the index stayed below the 21 EMA for yet another session, confirming a bearish short-term trend. The RSI also maintained a bearish tone, continuing with its bearish crossover.

On the lower end, the index once again found support at the 50 EMA. However, repeated retesting of a moving average within a short span raises doubts about the strength of this support.

Overall market breadth remains weak. A decisive slip below 25,700 could trigger a correction towards 25,500–25,400. On the higher end, the 25,950–26,000 zone is likely to act as a crucial resistance area.

Abhinav Tiwari, Research Analyst at Bonanza

Today, the Indian equity markets ended a volatile session almost flat, as late buying in select financial and defensive stocks helped offset losses caused by heavyweights in the banking space and continued foreign investor selling. The muted close reflected the absence of strong domestic triggers, along with ongoing currency volatility and uncertainty around the timing and pace of global interest rate cuts.

Benchmark indices traded in a narrow range throughout the day. Both indices ended with marginal losses of around 0.15%, after opening slightly higher. Midcap and smallcap stocks also saw mild weakness. Investors remained cautious due to mixed global cues while lower crude oil prices provided some macroeconomic comfort, this positive was offset by continued weakness in the rupee.

Large private banks like HDFC Bank and ICICI Bank were key drags. In contrast, select PSU, infrastructure, and defence related stocks gained, supported by fresh order wins and sector specific interest. Near-term market moves are likely to remain data driven and stock specific rather than index led.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decision.

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Taking Stock: Markets fall for 3rd day as Nifty below 25,900, Sensex slips 120 pts; media, realty top drags

Market failed to build on the opening gains and ended on a negative note for the third straight session on December 17 amid mixed global markets post sluggish US jobs data, persistent FII outflow and falling rupee amid delay in ‍potential India-US trade deal.

At close, the Sensex was down 120.21 points or 0.14 percent at 84,559.65, and the Nifty was down 41.55 points or 0.16 percent at 25,818.55. BSE Midcap index fell 0.6%, while smallcap index shed nearly 1%.

After hitting fresh record low in the previous session the Indian rupee appreciated today, snapping five-day losing streak, to closed higher by 66 paise at 90.37 against Tuesday's close of 91.03

Also Read: Eight of top 10 conglomerates deliver positive returns in 2025; Reliance, Bharti, Aditya Birla Group lead gains, Tata, ITC decline

Shriram Finance, SBI, Eicher Motors, Hindalco Industries, Tata Consumer were among top gainers on the Nifty, while losers included Max Healthcare, SBI Life Insurance, HDFC Life, Trent, Apollo Hospitals.

Among sectors, PSU Bank index added 1.2%, while media index shed 2%, while Private Bank, Realty, Consumer Durables, FMCG, Healthcare were down 0.4-1%.

Also Read: ICICI Prudential AMC IPO allotment date today: How to check status online via registrar, NSE &amp;amp; BSE; Check latest GMP

In stock-specific action, Akzo Nobel shares slipped more than 13% on 51.9 lakh shares block deal, Meesho shares surged 20% after UBS initiates ‘buy’ rating, Indian Overseas Bank shares fell 6% after government to sell up to 2% stake in the bank, Shriram Finance shares gained 2% as board meeting scheduled ⁠on December 19, Apeejay Surrendra Park shares added 1% on acquiring 100% stake of THALI Hotels.

Also Read - RBI steps in aggressively to boost struggling rupee, traders say

More than 180 stocks hit 52-week low, including Tejas Networks, Cohance Life, BASF, Sapphire Foods, Jubilant FoodWorks, Ramkrishna Forging, HFCL, Sanofi India, United Breweries, Bata India, NCC, KNR Construction, Blue Dart, ACC, Mankind Pharma, REC, Page Industries, Sheela Foam, among others. Click to View More

New Listings

The shares of Nephrocare Health Services ended with 2.5% gain after listed with a premium of 6.52 percent over the IPO price of Rs 460 per share.

After making a weak market debut at Rs 155.60 with a discount of 3.95 percent over the IPO price of Rs 162, Park Medi World shares ended lower by 8.6% at Rs 148 per share.

Outlook for December 18

Rupak De, Senior Technical Analyst at LKP Securities

Nifty has remained in the bears’ grip, as the index stayed below the 21 EMA for yet another session, confirming a bearish short-term trend. The RSI also maintained a bearish tone, continuing with its bearish crossover.

On the lower end, the index once again found support at the 50 EMA. However, repeated retesting of a moving average within a short span raises doubts about the strength of this support.

Overall market breadth remains weak. A decisive slip below 25,700 could trigger a correction towards 25,500–25,400. On the higher end, the 25,950–26,000 zone is likely to act as a crucial resistance area.

Abhinav Tiwari, Research Analyst at Bonanza

Today, the Indian equity markets ended a volatile session almost flat, as late buying in select financial and defensive stocks helped offset losses caused by heavyweights in the banking space and continued foreign investor selling. The muted close reflected the absence of strong domestic triggers, along with ongoing currency volatility and uncertainty around the timing and pace of global interest rate cuts.

Benchmark indices traded in a narrow range throughout the day. Both indices ended with marginal losses of around 0.15%, after opening slightly higher. Midcap and smallcap stocks also saw mild weakness. Investors remained cautious due to mixed global cues while lower crude oil prices provided some macroeconomic comfort, this positive was offset by continued weakness in the rupee.

Large private banks like HDFC Bank and ICICI Bank were key drags. In contrast, select PSU, infrastructure, and defence related stocks gained, supported by fresh order wins and sector specific interest. Near-term market moves are likely to remain data driven and stock specific rather than index led.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decision.

Nifty Breaks Below 25,800, Midcaps Continue To Struggle But Meesho Hits New High| Closing Bell Live

India’s alternative investment fund (AIF) industry has expanded rapidly over the past decade, with assets rising to Rs 13.5 lakh crore. Yet, the IVCA-Crisil-360One  report’s latest study highlights a structural imbalance. While foreign capital, family offices and high-net-worth investors have driven growth, participation from large domestic institutions and balance-sheet allocators remains limited. In a conversation with Moneycontrol, IVCA president, Rajat Tandon explains what the data reveals about this imbalance, where capital is actually flowing, and what could shape the next phase of growth.

The expansion reflects broader acceptance of alternatives, not speculative excess. AIF commitments have grown nearly 16x over the last eight years, reaching about Rs 13.5 lakh crore. What is important is that this growth is largely allocation-led, not driven by money exiting mutual funds. Investors are using AIFs to access strategies that are not available in traditional products — private markets, private credit, structured strategies and market-linked approaches. Alternatives have become a permanent allocation bucket rather than a tactical trade.

Edited excerpts:

If alternatives have scaled so much, where does the imbalance lie?

The imbalance is in who the capital is coming from. Growth so far has been driven largely by foreign investors, family offices and high-net-worth individuals. Large domestic institutional and balance-sheet allocators (such as insurers, retirement pools and corporate capital) remain underrepresented. This matters because these pools bring long-duration, stable capital, which is critical as the market matures.

There is frequent reference to a 5% allocation limit for institutions. Why is this relevant now?

Domestic institutions are permitted to allocate up to 5% of their assets to AIFs. The relevance of this limit today is not regulatory change (the rule has existed) but the fact that actual utilisation remains negligible, well below 0.1% by industry estimates. As AIFs move from being niche products to mainstream investment vehicles, this unused headroom becomes a meaningful constraint on scale rather than a theoretical number.

At this stage of market development, institutional behaviour becomes a signal of maturity. These allocators typically enter only when governance standards, reporting quality and outcome visibility are sufficiently robust. Understanding their hesitation helps identify what still needs strengthening — whether that is track record depth, predictability of distributions, or operational comfort. Their participation is less about immediate flows and more about setting benchmarks for the ecosystem.

How would higher institutional participation change the structure of AIFs?

It would change both fund stability and capital planning. Foreign capital will continue to play an important role, but it is often more sensitive to global cycles. Domestic institutional capital tends to be longer-term and less volatile. Its presence can reduce vintage risk, smooth fundraising cycles and allow managers to deploy capital more strategically rather than opportunistically.

Category III AIFs are often cited as underpenetrated. What does the data show?

Category III AIFs currently manage about Rs 1.5 lakh crore, compared to total AIF commitments of around Rs 13.5 lakh crore. This is a relatively small share for strategies that globally form a much larger part of the alternatives universe. These funds run market-linked strategies such as long-only and long–short approaches. From this base, growth potential is significant, particularly if regulatory and taxation clarity improves.

Is performance a limiting factor for Category III and other alternative strategies?

Performance needs to be evaluated by strategy type. Some approaches have longer gestation periods than others. That said, there have been cases where returns from alternative strategies, including unlisted exposure, have compared favourably with mutual fund returns. The conversation has gradually shifted from headline IRRs to consistency, risk management and realised outcomes.

The report flags private credit as a fast-growing segment. What is driving this trend?

Private credit has expanded after banks and NBFCs turned more cautious following the NBFC stress period. This created demand for alternative sources of capital. Today, private credit funds are active in infrastructure, real estate, and growth-stage companies between Series B and Series D. These are areas where capital demand remains strong but traditional lending is constrained. The report also points to growing dry powder in this segment.

How are family offices positioning themselves within this evolving market?

Family offices have become more selective and institutional in their approach. Capital is increasingly concentrated with established managers, particularly those on their fourth fund or later. Roughly one-third of IVCA members are on Fund IV or beyond, reflecting growing maturity within the ecosystem. First-time managers, especially in deep-tech strategies, continue to face higher scrutiny until outcomes become visible.

The report highlights DPI as a key metric. Why has this become important now?

DPI — distributions to paid-in capital — measures how much cash has actually been returned to investors. As the market matures, investors are focusing less on interim valuations and more on realised outcomes. The report shows improving DPI trends across several AIF categories, which is critical for building confidence among more conservative and institutional allocators.

What does all this suggest about the next phase of India’s alternatives market?

The growth phase is already behind us. The next phase is about institutionalisation. As governance standards strengthen, outcomes become more visible and participation broadens beyond early adopters, the alternatives ecosystem can scale in a more stable and sustainable way.

India’s alternatives market has scaled, but remains under-institutionalised, says IVCA President Rajat Tandon

India’s alternative investment fund (AIF) industry has expanded rapidly over the past decade, with assets rising to Rs 13.5 lakh crore. Yet, the IVCA-Crisil-360One  report’s latest study highlights a structural imbalance. While foreign capital, family offices and high-net-worth investors have driven growth, participation from large domestic institutions and balance-sheet allocators remains limited. In a conversation with Moneycontrol, IVCA president, Rajat Tandon explains what the data reveals about this imbalance, where capital is actually flowing, and what could shape the next phase of growth.

The expansion reflects broader acceptance of alternatives, not speculative excess. AIF commitments have grown nearly 16x over the last eight years, reaching about Rs 13.5 lakh crore. What is important is that this growth is largely allocation-led, not driven by money exiting mutual funds. Investors are using AIFs to access strategies that are not available in traditional products — private markets, private credit, structured strategies and market-linked approaches. Alternatives have become a permanent allocation bucket rather than a tactical trade.

Edited excerpts:

If alternatives have scaled so much, where does the imbalance lie?

The imbalance is in who the capital is coming from. Growth so far has been driven largely by foreign investors, family offices and high-net-worth individuals. Large domestic institutional and balance-sheet allocators (such as insurers, retirement pools and corporate capital) remain underrepresented. This matters because these pools bring long-duration, stable capital, which is critical as the market matures.

There is frequent reference to a 5% allocation limit for institutions. Why is this relevant now?

Domestic institutions are permitted to allocate up to 5% of their assets to AIFs. The relevance of this limit today is not regulatory change (the rule has existed) but the fact that actual utilisation remains negligible, well below 0.1% by industry estimates. As AIFs move from being niche products to mainstream investment vehicles, this unused headroom becomes a meaningful constraint on scale rather than a theoretical number.

At this stage of market development, institutional behaviour becomes a signal of maturity. These allocators typically enter only when governance standards, reporting quality and outcome visibility are sufficiently robust. Understanding their hesitation helps identify what still needs strengthening — whether that is track record depth, predictability of distributions, or operational comfort. Their participation is less about immediate flows and more about setting benchmarks for the ecosystem.

How would higher institutional participation change the structure of AIFs?

It would change both fund stability and capital planning. Foreign capital will continue to play an important role, but it is often more sensitive to global cycles. Domestic institutional capital tends to be longer-term and less volatile. Its presence can reduce vintage risk, smooth fundraising cycles and allow managers to deploy capital more strategically rather than opportunistically.

Category III AIFs are often cited as underpenetrated. What does the data show?

Category III AIFs currently manage about Rs 1.5 lakh crore, compared to total AIF commitments of around Rs 13.5 lakh crore. This is a relatively small share for strategies that globally form a much larger part of the alternatives universe. These funds run market-linked strategies such as long-only and long–short approaches. From this base, growth potential is significant, particularly if regulatory and taxation clarity improves.

Is performance a limiting factor for Category III and other alternative strategies?

Performance needs to be evaluated by strategy type. Some approaches have longer gestation periods than others. That said, there have been cases where returns from alternative strategies, including unlisted exposure, have compared favourably with mutual fund returns. The conversation has gradually shifted from headline IRRs to consistency, risk management and realised outcomes.

The report flags private credit as a fast-growing segment. What is driving this trend?

Private credit has expanded after banks and NBFCs turned more cautious following the NBFC stress period. This created demand for alternative sources of capital. Today, private credit funds are active in infrastructure, real estate, and growth-stage companies between Series B and Series D. These are areas where capital demand remains strong but traditional lending is constrained. The report also points to growing dry powder in this segment.

How are family offices positioning themselves within this evolving market?

Family offices have become more selective and institutional in their approach. Capital is increasingly concentrated with established managers, particularly those on their fourth fund or later. Roughly one-third of IVCA members are on Fund IV or beyond, reflecting growing maturity within the ecosystem. First-time managers, especially in deep-tech strategies, continue to face higher scrutiny until outcomes become visible.

The report highlights DPI as a key metric. Why has this become important now?

DPI — distributions to paid-in capital — measures how much cash has actually been returned to investors. As the market matures, investors are focusing less on interim valuations and more on realised outcomes. The report shows improving DPI trends across several AIF categories, which is critical for building confidence among more conservative and institutional allocators.

What does all this suggest about the next phase of India’s alternatives market?

The growth phase is already behind us. The next phase is about institutionalisation. As governance standards strengthen, outcomes become more visible and participation broadens beyond early adopters, the alternatives ecosystem can scale in a more stable and sustainable way.

Indian equity benchmarks <a href="https://www.moneycontrol.com/news/business/markets/stock-market-live-updates-gift-nifty-indicates-a-flat-opening-us-asian-markets-mixed-liveblog-13728846.html">Sensex and Nifty</a> fell significantly from day's high on December 17 amid volatility and ended in red for third straight day.

At 3:40 pm, the Sensex was down 120.21 points or 0.14% at 84,559.65, and the Nifty was down 41.55 points or 0.16% at 25,818.55. About 1,436 shares advanced, 2,555 shares declined, and 153 shares were unchanged. Sensex fell over 300 points from day's high. Sensex's day high was 84,889 while that of Nifty was 25,929.

Eleven of the 16 major sectors fell on the day. Mid- and small-cap indices were hit harder than their benchmark peers by falling 0.5% and 0.7%, respectively. Nearly 33% of the total 3,224 stocks advanced on the National Stock Exchange, while almost 65% declined and the rest were unchanged.

The Nifty PSU Bank index rose 1.3% and the Nifty Metal index was up 0.25%, while the Nifty Consumer Durables and the Nifty Media index dropped 1% and 1.7%, respectively.

Shriram Finance, State Bank of India, Eicher Motors, Hindalco Industries, Tata Consumer were among top gainers on the Nifty, while losers included Max Healthcare, SBI Life Insurance, HDFC Life, Trent, Apollo Hospitals.

Most defence stocks were down and the Nifty India Defence index fell for the third consecutive session. Shares of MTAR Technologies, Paras Defence and Space Technologies, and Data Patterns (India) fell 2–3%. Akzo Nobel India, Indian Overseas Bank, HBL Engineering were the biggest decliners among Nifty 500 constituents and were down 4–12%.

Here are various factors behind market decline:
<ol>
	<li>Uncertain Fed outlook</li>
</ol>
Mixed signals from US jobs data kept the Federal Reserve's rate trajectory outlook uncertain following which Wall Street ended on a mixed note and Asian markets were also muted as mixed US jobs data reading left investors awaiting further cues.

The S&amp;P 500 slipped 0.24%, marking its third straight decline, as investors assessed the delayed release of the November jobs report. The Nasdaq Composite gained 0.23%, while the Dow Jones Industrial Average fell 0.62%.

US jobs growth rebounded more than expected in November, but the unemployment rate rose to a four-year high of 4.6%. Investors are now waiting for the U.S. consumer price inflation data for November due on Thursday.

Fed funds futures suggest markets are still pricing in roughly two U.S. rate cuts next year, with the latest labour market reading doing little to shift expectations.

"For now, our base case remains two 25-bps rate cuts in the first half of next year at the March and June FOMC meetings, with the risks skewed toward more rather than fewer cuts in 2026," economists at Wells Fargo said in a note.

2. Persistent FII selling

On the institutional front, foreign institutional investors (FIIs) were net sellers of equities worth Rs 2,060.76 crore, while domestic institutional investors (DIIs) bought shares worth Rs 770.76 crore on Tuesday, December 16.

Foreign investors have sold Indian equities for eight consecutive sessions till Tuesday.

"Persistent FPI selling and weakness in the rupee remain key near-term headwinds, compounded by delays in the conclusion of India-US trade negotiations," said Ponmudi R, chief executive officer at Enrich Money.

"With the ongoing weakening of the AI trade, FIIs are likely to turn buyers in India sometime in 2026. If, along with this, a US-India trade deal happens, FIIs will turn buyers in India. There is a likelihood of rupee strengthening in H1 2026. Therefore, while FII selling is depressing stock prices now, investors should buy in anticipation of a 2026 rally," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

3. Selling in banking heavyweights

A 1.5% rise in shares of State Bank of India lent support to the Nifty 50, while index heavyweights such as ICICI Bank and HDFC Bank fell 1.5% and 0.6%, respectively, dragging down the index. Shares of Axis Bank were up over 1% after a sharp decline in the previous session.

The two stocks have a cumulative weightage of over 20% on the index. Bharti Airtel, which has a near 5% weightage, fell marginally after rising earlier.

4. Oil prices jump

Oil prices climbed after US President Donald Trump ordered "a total and complete" blockade of all sanctioned oil tankers entering and leaving Venezuela, raising fresh geopolitical tensions at a time of concerns over demand.

US crude futures advanced 1.3% to $55.97 per barrel, while Brent crude futures rose 1.15% to $59.60 a barrel, cutting into steep losses from Tuesday. Oil prices slid as the prospect of a Russia-Ukraine peace deal appeared to strengthen, raising expectations sanctions could be eased.

The move is a major escalation and follows the seizure of an oil tanker last week by US forces off Venezuela. The regime of President Nicolas Maduro said the latest action was intended to steal the country’s resources.

Venezuela’s oil production has increased since hitting a low in 2020, but is far from where it was decades ago. Tankers loaded almost 590,000 barrels a day for export last month, compared with global consumption of more than 100 million barrels a day. Most of the country’s crude goes to China.

The OPEC producer’s flagship Merey crude is often used to make bitumen to pave roads in China. Bitumen futures in Shanghai surged as much as 2.8% on Wednesday, the biggest increase since late October, reported Bloomberg.

Technical View

"For the Nifty 50, the index continues to trade under pressure after failing to reclaim higher levels in recent sessions. The near-term trend remains sideways to negative as the index is trading below key short-term moving averages. Immediate support is placed around 25,700, and a breakdown below this level could lead to further consolidation toward 25,600–25,550. On the upside, resistance is seen at 26,000–26,050, which remains a crucial hurdle. A sustained close above this zone is required to stabilise sentiment and revive short-term bullish momentum. Until then, the index is likely to remain range-bound with a cautious bias," said Aakash Shah, Technical Research Analyst at Choice Equity Broking Private Limited.

With inputs from Reuters

Sensex settles 300 pts lower from day's high, Nifty ends below 25,850: Mixed US jobs data among key factors behind market decline

Sensex news today: Sensex settles 300 pts lower from day's high, Nifty ends below 25,850 - Mixed US jobs data among key factors behind market decline

Indian equity benchmarks Sensex and Nifty fell significantly from day's high on December 17 amid volatility and ended in red for third straight day.

At 3:40 pm, the Sensex was down 120.21 points or 0.14% at 84,559.65, and the Nifty was down 41.55 points or 0.16% at 25,818.55. About 1,436 shares advanced, 2,555 shares declined, and 153 shares were unchanged. Sensex fell over 300 points from day's high. Sensex's day high was 84,889 while that of Nifty was 25,929.

Eleven of the 16 major sectors fell on the day. Mid- and small-cap indices were hit harder than their benchmark peers by falling 0.5% and 0.7%, respectively. Nearly 33% of the total 3,224 stocks advanced on the National Stock Exchange, while almost 65% declined and the rest were unchanged.

The Nifty PSU Bank index rose 1.3% and the Nifty Metal index was up 0.25%, while the Nifty Consumer Durables and the Nifty Media index dropped 1% and 1.7%, respectively.

Shriram Finance, State Bank of India, Eicher Motors, Hindalco Industries, Tata Consumer were among top gainers on the Nifty, while losers included Max Healthcare, SBI Life Insurance, HDFC Life, Trent, Apollo Hospitals.

Most defence stocks were down and the Nifty India Defence index fell for the third consecutive session. Shares of MTAR Technologies, Paras Defence and Space Technologies, and Data Patterns (India) fell 2–3%. Akzo Nobel India, Indian Overseas Bank, HBL Engineering were the biggest decliners among Nifty 500 constituents and were down 4–12%.

Here are various factors behind market decline:

	Uncertain Fed outlook

Mixed signals from US jobs data kept the Federal Reserve's rate trajectory outlook uncertain following which Wall Street ended on a mixed note and Asian markets were also muted as mixed US jobs data reading left investors awaiting further cues.

The S&amp;amp;P 500 slipped 0.24%, marking its third straight decline, as investors assessed the delayed release of the November jobs report. The Nasdaq Composite gained 0.23%, while the Dow Jones Industrial Average fell 0.62%.

US jobs growth rebounded more than expected in November, but the unemployment rate rose to a four-year high of 4.6%. Investors are now waiting for the U.S. consumer price inflation data for November due on Thursday.

Fed funds futures suggest markets are still pricing in roughly two U.S. rate cuts next year, with the latest labour market reading doing little to shift expectations.

&quot;For now, our base case remains two 25-bps rate cuts in the first half of next year at the March and June FOMC meetings, with the risks skewed toward more rather than fewer cuts in 2026,&quot; economists at Wells Fargo said in a note.

2. Persistent FII selling

On the institutional front, foreign institutional investors (FIIs) were net sellers of equities worth Rs 2,060.76 crore, while domestic institutional investors (DIIs) bought shares worth Rs 770.76 crore on Tuesday, December 16.

Foreign investors have sold Indian equities for eight consecutive sessions till Tuesday.

&quot;Persistent FPI selling and weakness in the rupee remain key near-term headwinds, compounded by delays in the conclusion of India-US trade negotiations,&quot; said Ponmudi R, chief executive officer at Enrich Money.

&quot;With the ongoing weakening of the AI trade, FIIs are likely to turn buyers in India sometime in 2026. If, along with this, a US-India trade deal happens, FIIs will turn buyers in India. There is a likelihood of rupee strengthening in H1 2026. Therefore, while FII selling is depressing stock prices now, investors should buy in anticipation of a 2026 rally,&quot; said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

3. Selling in banking heavyweights

A 1.5% rise in shares of State Bank of India lent support to the Nifty 50, while index heavyweights such as ICICI Bank and HDFC Bank fell 1.5% and 0.6%, respectively, dragging down the index. Shares of Axis Bank were up over 1% after a sharp decline in the previous session.

The two stocks have a cumulative weightage of over 20% on the index. Bharti Airtel, which has a near 5% weightage, fell marginally after rising earlier.

4. Oil prices jump

Oil prices climbed after US President Donald Trump ordered &quot;a total and complete&quot; blockade of all sanctioned oil tankers entering and leaving Venezuela, raising fresh geopolitical tensions at a time of concerns over demand.

US crude futures advanced 1.3% to $55.97 per barrel, while Brent crude futures rose 1.15% to $59.60 a barrel, cutting into steep losses from Tuesday. Oil prices slid as the prospect of a Russia-Ukraine peace deal appeared to strengthen, raising expectations sanctions could be eased.

The move is a major escalation and follows the seizure of an oil tanker last week by US forces off Venezuela. The regime of President Nicolas Maduro said the latest action was intended to steal the country’s resources.

Venezuela’s oil production has increased since hitting a low in 2020, but is far from where it was decades ago. Tankers loaded almost 590,000 barrels a day for export last month, compared with global consumption of more than 100 million barrels a day. Most of the country’s crude goes to China.

The OPEC producer’s flagship Merey crude is often used to make bitumen to pave roads in China. Bitumen futures in Shanghai surged as much as 2.8% on Wednesday, the biggest increase since late October, reported Bloomberg.

Technical View

&quot;For the Nifty 50, the index continues to trade under pressure after failing to reclaim higher levels in recent sessions. The near-term trend remains sideways to negative as the index is trading below key short-term moving averages. Immediate support is placed around 25,700, and a breakdown below this level could lead to further consolidation toward 25,600–25,550. On the upside, resistance is seen at 26,000–26,050, which remains a crucial hurdle. A sustained close above this zone is required to stabilise sentiment and revive short-term bullish momentum. Until then, the index is likely to remain range-bound with a cautious bias,&quot; said Aakash Shah, Technical Research Analyst at Choice Equity Broking Private Limited.

With inputs from Reuters

Nifty At Risk Of Deeper Correction Below 25,900? | Opening Bell Live

11 out of 17 years BSE IPO has given positive returns in December.

Type	R1	R2	R3	PP	S1	S2	S3
Classic	15,362.44	15,392.22	15,427.23	15,327.43	15,297.65	15,262.64	15,232.86
Fibonacci	15,352.18	15,367.47	15,392.22	15,327.43	15,302.68	15,287.39	15,262.64
Camarilla	15,338.61	15,344.55	15,350.49	15,327.43	15,326.73	15,320.79	15,314.85

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