The BSE Sensex fell 346 points, or 0.41%, to close at 84,695.54, while the NSE Nifty 50 dropped 100 points, or 0.38%, settling below the 26,000 mark at 25,942.10.
On the 30-stock Sensex, shares of Adani Ports, Power Grid, HCL Technologies, Trent and Bharat Electronics led declines, falling between 1% and 2%.
Energy stocks slid 0.5%, weighed down by a 0.9% drop in Reliance Industries, while the IT index fell 0.8%.
The broader market also weakened, with mid-cap stocks down 0.5% and small-caps lower by 0.7%.
Expert views
The market appears short on catalysts for further upside, with investors largely in holiday mode, signalling a potential consolidation phase in the near term, said Vinod Nair, Head of Research at Geojit Investments, adding that while the outlook for 2026 remains constructive, attention is expected to shift toward upcoming Q3 earnings and clarity on the U.S. trade agreement.
“In an environment of global trade anxiety and a weakening rupee, investors are likely to favour large-cap stocks for their relative safety and stronger earnings visibility,” said Nair.
Global Markets
Global stocks were set to close 2025 at record levels on Monday, while the dollar lingered near a three-month low as investors priced in further Federal Reserve interest-rate cuts next year. MSCI’s global equity index was little changed in early European trade, leaving it up nearly 21% for the year after Wall Street notched a fresh record on Friday and European shares touched an intraday high on Monday.
Markets also digested comments from U.S. President Donald Trump that talks with Ukrainian President Volodymyr Zelenskiy were moving “a lot closer” to a deal to end the war in Ukraine.
In commodities, three-month copper on the London Metal Exchange jumped 3.3% to $12,560 a metric ton, after hitting a record $12,960 earlier in the session.
Asian equities started the final week of the year on a firm footing. MSCI’s Asia-Pacific index rose 0.4%, extending a year marked by double-digit gains across most regional markets as investors leaned into artificial-intelligence themes and largely shrugged off trade-tariff concerns. South Korea’s Kospi climbed 2.2%, putting it on track for its strongest annual performance since 1999.
Crude impact
Oil prices edged higher on Monday as investors assessed diplomatic efforts to end the war in Ukraine alongside persistent Middle East tensions that could threaten global supply.
Brent crude rose 67 cents, or 1.1%, to $61.31 a barrel by 0751 GMT, while U.S. West Texas Intermediate gained 65 cents, or 1.15%, to $57.39.
Rupee vs Dollar
The Indian rupee weakened for a third consecutive session on Monday, ending at 89.9750 to the U.S. dollar, down from 89.85 on Friday, after opening at 89.88 and sliding steadily through the session, pressured by corporate dollar demand through private banks and bids clustered around the central bank’s reference rate, traders said.
Broader Asian signals offered little support, with most regional currencies weaker and the dollar index firming to 98.05.
(with inputs from agencies)
Source: https://economictimes.indiatimes.com/markets/stocks/news/market-wrap-sensex-slides-346-pts-nifty-below-26000-as-year-end-lull-drags-d-st/articleshow/126229984.cms
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