Markets slip on FPI selling, year-end listlessness; Sensex down 346 points

Indian equities fell amid year-end listlessness and foreign portfolio investor selling. Sensex declined 0.4% to 84,696, while Nifty fell 0.4% to 25,926

Domestic equities declined on Monday, amid year-end listlessness and foreign portfolio investor selling, which weighed on sentiment. The Sensex on Monday ended the session at 84,696, a decline of 346 points or 0.4 per cent. The Nifty, meanwhile, ended the session at 25,926, down 100 points, or 0.4 per cent.  The Sensex posted its fourth consecutive decline and Nifty its third. The total market capitalisation of BSE-listed firms declined by ₹1.8 trillion to ₹472 trillion.

 

The lack of clarity on any positive breakthrough in the India-US trade talks has made investors circumspect, leading them to sell on every rise after the benchmark indices hit new intraday highs in December. Foreign portfolio investor (FPI) selling on account of rupee depreciation have also weighed on investor minds. Foreign investors were net sellers of ₹2,760 crore on Monday, while domestic institutions bought shares worth ₹2,644 crore.

 

 

The market appears short on catalysts for further upside, with investors largely in holiday mode, signalling a potential consolidation phase in the near term. While the outlook for 2026 remains constructive, attention is expected to shift toward upcoming Q3 earnings and clarity on the US trade agreement. In an environment of global trade anxiety and a weakening rupee, investors are likely to favour largecap stocks for their relative safety and stronger earnings visibility," said  Vinod Nair, Head of Research, Geojit Investments.

 

From now on, the corporate results for the December quarter and positive news on the Indo-US trade deal will provide fresh triggers for market gains.

 

The market breadth was weak, with 2,831 stocks declining and 1,495 advancing.

 

Four-fifths of Sensex stocks declined — Reliance Industries, which fell 0.8 per cent. The stock declined amid news reports that the union government is seeking $30 billion in compensation in an arbitration case. Bharti Airtel and ICICI Bank were the other big drags on Sensex.