Markets End Marginally Lower After Choppy Session as Nifty Defends 26,000 Amid Global and Currency Pressures
| Index | Price | Change | % Chg |
| Nifty 50 | 26,027.30 | 19.65 | -0.08% |
| Nifty Bank | 59,461.80 | 71.85 | +0.12% |
| Nifty Financial | 27,603.15 | 69.45 | -0.25% |
| BSE SENSEX | 85,213.36 | 54.30 | -0.06% |
Benchmarks Snap Two-Day Rally but Recover Sharply From Lows in Volatile Trade
Indian equity markets ended marginally lower on December 15, snapping a two-day gaining streak, but managed a strong recovery from intraday lows as investors stepped in to buy select stocks at lower levels. Despite persistent global uncertainty, foreign fund outflows and a sharp fall in the rupee to a fresh record low, the Nifty 50 held firmly above the crucial 26,000 mark, reflecting underlying resilience.
The session was marked by sharp intraday swings. Weak global cues dragged indices lower at the open, pushing the Nifty close to 25,900 in early trade. However, mid-session buying in FMCG, consumer durables, IT and select banking stocks helped the market pare losses and close near the day’s high.
Also Read : Wholesale Inflation Remains in Negative Zone at –0.32%, Pressure Eases in November
Sensex and Nifty Close Slightly Lower but Off Day’s Worst Levels
At the close, the Nifty 50 ended at 26,027.30, down 0.08 percent, while the BSE Sensex settled 0.06 percent lower at 85,213.36, recovering nearly 400 points from the day’s low.
The Bank Nifty outperformed, gaining 0.12 percent to close at 59,461.80, supported by selective buying in large banking names.
Market sentiment remained fragile, influenced by continued foreign institutional investor (FII) selling, uncertainty over an India–US trade deal, concerns around Mexico’s proposed tariff regime, and a sharp depreciation in the rupee.
Sectoral Trends Show Defensive Bias
Sectoral performance highlighted a defensive tilt in the market. PSU Bank, Media, FMCG, Consumer Durables and IT stocks gained between 0.3 and 1 percent, cushioning the benchmarks.
On the downside, Auto (-0.91%), Pharma (-0.39%) and Realty (-0.05%) underperformed. Auto stocks were the weakest link, with JM Financial cautioning that auto and auto-component makers, along with aluminium-product companies, could face higher risks from Mexico’s proposed tariff hikes.
Stock-Specific Action Dominates the Session
Several stocks saw sharp moves driven by company-specific developments:
PVR Inox gained 3 percent as its movie Dhurandhar created new box office records.
Geojit Financial Services surged 9 percent after 4.25 crore shares changed hands in block deals.
Refex Industries jumped 17 percent after clarifying issues related to income-tax department search operations.
Elitecon International rose 5 percent after winning a long-term supply contract.
Infrastructure and capital goods stocks also attracted buying interest. KEC International added over 1 percent after bagging new orders worth ₹1,150 crore, while Ashoka Buildcon surged 2.5 percent as its JV secured a project worth ₹1,041.44 crore. SEPC rallied 12 percent after signing an MoU with JARPL.
On the losing side, Matrimony.com declined 5 percent after the board approved a share buyback, while Wheels India rose 5 percent after signing a technical assistance agreement with Japan’s Topy Industries.
Top Gainers and Losers Reflect Sector Rotation
Among Nifty 50 gainers, IndiGo (+2.05%), Trent (+1.22%), Hindustan Unilever (+1.21%), HCL Tech (+0.79%), and Wipro (+0.73%) led the gains. IndiGo extended its rally for a third straight session as operations showed signs of stabilising after earlier flight cancellations.
The top losers included M&M (-1.90%), Eicher Motors (-1.56%), ONGC (-1.18%), Bajaj Auto (-1.04%), and JSW Steel (-1.02%), reflecting pressure in autos, energy and metals.
52-Week Highs and Lows Signal Heightened Volatility
Market volatility was visible across the broader universe. Over 120 stocks hit fresh 52-week lows, including Petronet LNG, Ramkrishna Forging, Sheela Foam, Veranda Learning, Patel Engineering, Panorama Studios, and TCPL Packaging.
At the same time, more than 100 stocks touched 52-week highs, such as IDFC First Bank, Ashok Leyland, Federal Bank, Vedanta, Hindustan Zinc, Muthoot Finance, NALCO, Hindustan Copper and Vodafone Idea, highlighting sharp divergence in stock performance.
New Listings End Mixed After Initial Buzz
Among recent IPO listings, Corona Remedies, which debuted with over 38 percent premium to its issue price, ended marginally lower at ₹1,422.20. Wakefit shares closed slightly weaker at ₹190.65, after a muted debut despite its IPO being subscribed more than two times.
Three Key Reasons Behind the Intraday Recovery
The sharp rebound from intraday lows was driven by three main factors:
Value buying at lower levels: Investors accumulated stocks after the early decline, particularly in Bank Nifty, FMCG, consumer durables and IT, as valuations became attractive amid global uncertainty.
Firm cues from US markets: US futures traded higher by up to 0.3 percent, signalling a positive opening on Wall Street and improving domestic sentiment.
Renewed interest in FMCG stocks: FMCG shares rebounded after recent weakness. Britannia Industries and Marico rose up to 2 percent, lending stability to the indices.
Technical Outlook Suggests Caution Near Resistance
On the technical front, Anand James, Chief Market Strategist at Geojit Investments Limited, said the Nifty closed near a declining parallel trendline.
“We will begin with expectations of continuation of the uptrend, but inability to clear 26,190 will be taken as a loss of momentum. A direct fall below 25,970 could invite long liquidation, though a sharp collapse is less expected,” he noted.
The India VIX rose 1.40 percent to 10.25, indicating a modest increase in near-term volatility expectations.
Rupee Slides to Fresh Record Low, Adds to Market Pressure
Currency markets remained a key overhang. The rupee slumped 25 paise to close at an all-time low of 90.74 against the US dollar, after touching an intraday low of 90.80. Persistent foreign selling, a stalemate in India–US trade negotiations and a widening trade deficit kept the currency under pressure. Year-to-date, the rupee is down 5.6 percent.
Global Markets Mixed; Emerging Markets Under Pressure
Global cues were mixed. The Stoxx Europe 600 rose 0.3 percent, while S&P 500, Dow and Nasdaq futures gained up to 0.3 percent. In contrast, the MSCI Asia Pacific Index fell 0.7 percent, and the MSCI Emerging Markets Index declined 1.2 percent, reflecting continued pressure on emerging market assets.
Separately, IT stocks remained in focus after reports that US President Donald Trump’s proposed $100,000 H-1B visa fee could significantly impact IT outsourcing and staffing firms such as TCS, Infosys and Cognizant.
F&O Ban List and Market Internals
In the derivatives segment, Bandhan Bank remained in the F&O ban list. Several stocks, including Adani Enterprises, Kaynes, HFCL, RBL Bank, IndiGo, IRCTC, HUDCO, LIC Housing Finance, Dixon, SAIL and PNB, hovered near MWPL thresholds and could see trading restrictions if positions rise further.
Market internals reflected cautious participation:
Advancers: 1,667
Decliners: 1,471
52-week highs: 68
52-week lows: 101
Outlook: Range-Bound Trade With Stock-Specific Opportunities
Overall, the market’s ability to defend Nifty 26,000 suggests underlying strength, but sustained upside will depend on clarity around global trade developments, currency stability and foreign fund flows. Until then, experts expect range-bound trading with heightened volatility and stock-specific action, as investors remain selective in a challenging macro environment.
FAQs Sensex Stages Late Recovery, Nifty Holds 26,000
Why do newly listed stocks often turn volatile after the first few trading sessions?
Newly listed stocks tend to see heightened volatility once the initial excitement fades, as early investors book profits and long-term participants reassess valuations, growth visibility and broader market conditions before committing fresh capital.
How should investors evaluate IPO stocks after the listing-day rally cools off?
Investors should shift focus from listing gains to fundamentals such as earnings visibility, sector outlook, balance sheet strength and management execution, rather than relying on short-term price momentum.
Is profit booking in new listings a negative signal for long-term investors?
Not necessarily. Profit booking after a strong debut is common and often healthy, as it allows prices to stabilise at levels that better reflect underlying business prospects rather than listing-day sentiment.
What role does overall market sentiment play in the post-listing performance of new stocks?
Broader market trends significantly influence post-listing behaviour, as risk appetite, interest rates, currency movements and foreign fund flows can either support or suppress buying interest in newly listed companies.
Why do some IPO stocks fail to sustain momentum despite strong subscription numbers?
High subscription levels reflect demand at the issue price, but sustaining momentum depends on valuation comfort, earnings delivery and secondary market liquidity, which may differ from primary market enthusiasm.
When is the right time for retail investors to consider buying newly listed stocks?
Retail investors may benefit from waiting for post-listing price discovery, observing how the stock trades through its first few weeks and using corrections to assess entry opportunities aligned with long-term investment goals.
