Indian equities stayed under pressure on Monday morning, with benchmark indices extending last week’s decline as global jitters, a sliding rupee, and sector-wide selling kept traders on edge.
The Sensex trimmed early losses but still traded sharply lower, while broader markets cracked, led by autos, real estate, and pharma stocks.
Benchmarks Slide Despite Early Recovery Attempts
The BSE Sensex hovered near 84,959 by mid-morning, down about 308 points, or 0.36 percent. The NSE Nifty50 slipped below the 26,000 mark, trading near 25,951, down 96 points, or 0.37 percent.
There was a brief attempt to bounce back after the open, but it didn’t last long.
Selling pressure resurfaced as the session progressed, pushing both indices close to the day’s lows before marginal support emerged. Traders, honestly, looked unconvinced. Volumes were steady, not panic-like, yet clearly skewed to the sell side.
Market participants pointed to weak cues from overseas markets, where Asian equities traded mixed and US futures showed little conviction. Add a record low in the rupee, and sentiment had very little to stand on.
A dealer at a Mumbai-based brokerage summed it up bluntly: nobody wants to add risk before clarity shows up.
Heavyweights Drag as Only a Few Stocks Stay Afloat
Most Sensex heavyweights stayed firmly in the red, dragging the index lower.
Mahindra & Mahindra, Trent, Bharti Airtel, NTPC, Bajaj Finserv, Power Grid, Sun Pharma, Kotak Mahindra Bank, Infosys, TCS, Titan, Maruti Suzuki, and Bajaj Finance declined by as much as 1.4 percent. Financials and autos were clearly under strain, while IT stocks continued to look tired after recent global tech volatility.
There were very few bright spots.
Asian Paints, Bharat Electronics, Hindustan Unilever, and UltraTech Cement managed to post modest gains, offering limited support. Defensive buying was visible, but it felt hesitant, almost reluctant.
One sentence says it all.
Market breadth stayed negative.
Broader Market Cracks Show Deeper Nervousness
The real damage showed up away from the benchmarks.
Midcap and smallcap stocks, which had held up better in recent weeks, finally gave in. The Nifty MidCap index slipped 0.51 percent, while the Nifty SmallCap index fell 0.15 percent.
Selling was selective but widespread, especially in stocks that had rallied hard over the past few months. Profit booking, basically, looked overdue.
A quick snapshot of sectoral performance explains the mood clearly:
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Nifty Auto fell about 1.1 percent, the worst performer of the day
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Nifty Realty and Nifty Pharma dropped up to 0.8 percent
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Nifty Media was among the rare sectoral indices holding steady
Auto stocks struggled on worries around demand moderation and higher input costs. Realty names slipped as bond yields stayed elevated, raising concerns over borrowing costs. Pharma stocks, meanwhile, saw muted buying despite defensive appeal, as investors stayed cautious ahead of global regulatory updates.
To put the market move in perspective, here’s how key indices were trading mid-morning:
| Index | Level | Change |
|---|---|---|
| BSE Sensex | ~84,959 | -308 pts (-0.36%) |
| Nifty50 | ~25,951 | -96 pts (-0.37%) |
| Nifty MidCap | — | -0.51% |
| Nifty SmallCap | — | -0.15% |
That table, honestly, doesn’t scream panic. But it does whisper discomfort.
Rupee Hits Fresh Record Low, Adding to Market Unease
Currency markets added another layer of stress.
The Indian rupee slid to a fresh all-time low of 90.78 against the US dollar during early trade, before stabilizing slightly. It had opened weaker at 90.55 compared with Friday’s close of 90.42.
This move did not go unnoticed.
A weaker rupee tends to hurt import-heavy sectors and raises inflation concerns, especially with crude oil prices staying volatile. While exporters may benefit on paper, equity markets usually don’t cheer a fast currency slide.
Traders cited persistent dollar demand, foreign fund outflows, and cautious global risk appetite as key drivers. The Reserve Bank of India’s presence was watched closely, though there was no immediate sign of aggressive intervention.
One forex trader said it plainly: the rupee looks vulnerable as long as global uncertainty stays around.
Stock-Specific Action Keeps Traders Busy
Despite the broader weakness, individual stocks saw sharp moves, keeping intraday traders active.
Vodafone Idea continued its strong run, hitting a 15-month high of ₹12.02 after gaining about 3 percent intraday. The stock has surged roughly 96 percent over the past four months and is up 21 percent so far in December, backed by heavy volumes and renewed speculative interest.
IPO action also drew attention.
Corona Remedies listed on the BSE at ₹1,452, a premium of nearly 37 percent over its issue price of ₹1,062. Wakefit Innovations, on the other hand, made a flat debut on the NSE at ₹195, matching its issue price. The contrast highlighted how selective investors have become, even in the primary market.
Then there was Refex Industries.
The stock hit a 52-week low, extending a steep fall that has wiped out nearly 38 percent in just four sessions. The drop followed a ₹10 lakh penalty imposed by SEBI on the company’s chairman for alleged insider trading, along with income tax search operations concluded over the weekend.
That kind of headline, you know, scares people fast.
Global Cues and Fund Flows Remain Key Triggers
Looking ahead, market participants remain focused on global signals.
Concerns around slowing global growth, sticky interest rates, and stretched valuations continue to weigh on sentiment. While some global fund managers see Indian equities as a hedge against concentrated AI-driven trades elsewhere, near-term flows have turned cautious.
Foreign portfolio investors have already pulled out significant sums this month, and traders are watching daily data closely. Domestic institutional buying has helped cushion the fall, but even that support looks selective now.
Gold and silver prices rose on the MCX, reflecting a mild risk-off tone. February gold futures climbed about 0.7 percent, while silver gained over 1.3 percent, suggesting some money is shifting to safer assets.
