Why Did Sensex and Nifty Decline Amid Profit Booking?
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Synopsis
On December 9, the Indian stock markets saw a decline as profit booking took hold after a recent rally. With global trade concerns and significant movements in heavyweight stocks, investors are closely watching developments in the US-India tariff negotiations.
Key Takeaways
- Market downturn due to profit booking.
- Concerns over US tariffs impacting trade negotiations.
- Heavyweight stocks like Asian Paints and TCS were significant losers.
- Broader markets showed resilience with gains in MidCap and SmallCap indices.
- Analysts predict central bank commentary will shape future market trends.
Mumbai, Dec 9 (NationPress) The Indian stock markets concluded lower on Tuesday as investors engaged in profit-taking following a recent surge, resulting in a widespread decline across major indices.
Investor sentiment was further dampened by reports indicating that US President Donald Trump might contemplate implementing new tariffs on Indian rice, which raised fresh concerns regarding ongoing trade negotiations between India and the United States.
By the end of trading, the Sensex finished at 84,666.28, experiencing a drop of 436.41 points or 0.51 percent.
The Nifty also experienced a downturn, closing at 25,839.65, down by 120.90 points or 0.47 percent.
Numerous heavyweight stocks negatively impacted the market, with Asian Paints, Tech Mahindra, HCL Tech, Tata Steel, Maruti Suzuki, Sun Pharma, TCS, ICICI Bank, and Bajaj Finance being the most significant losers.
These stocks declined by as much as 4.6 percent during the trading session. Conversely, a few stocks like Eternal, Titan, Adani Ports, BEL, and SBI managed to remain in positive territory, offering some support to the benchmarks.
The broader market demonstrated stronger performance, with the Nifty MidCap index rising by 0.32 percent and the Nifty SmallCap index increasing by 1.14 percent, indicating ongoing buying interest in mid- and small-cap stocks.
Most sectoral indices, such as Nifty IT, Auto, and Pharma, faced pressure, each declining nearly 1 percent.
Other sectors including PSU Bank, FMCG, Media, Consumer Durables, and Chemicals also traded lower throughout the day.
Analysts noted that the market was burdened by global trade concerns and persistent profit booking, as investors adopted a cautious stance ahead of further updates on the US-India tariff situation.
“In the short term, commentary from the central bank, currency fluctuations, and FII flows will influence market sentiment, while domestic macroeconomic resilience is anticipated to cushion against downside risks,” analysts stated.
“While the markets largely expect a 25-basis point rate cut by the Fed and a potential rate increase by the BoJ, the forward guidance for 2026 will be crucial,” they added.
Meanwhile, the Indian rupee appreciated by 23 paise to 89.82 as short covering occurred following a modest recovery in equities.
Point of View
We must acknowledge the ongoing volatility in the stock markets influenced by geopolitical factors. The recent decline highlights the fragile state of investor sentiment amidst global trade uncertainties. Our commitment remains to keep our audience informed and prepared for such fluctuations.
NationPress
10/12/2025
Frequently Asked Questions
What caused the decline in Sensex and Nifty?
The decline was primarily due to profit booking after a recent rally and concerns about potential new tariffs on Indian rice from the US.
Which stocks were the biggest losers?
The biggest losers included Asian Paints, Tech Mahindra, HCL Tech, Tata Steel, and Bajaj Finance.
How did the broader market perform?
The broader market showed resilience, with the Nifty MidCap index gaining 0.32 percent and the Nifty SmallCap index rising 1.14 percent.
What are analysts saying about future market trends?
Analysts suggest that central bank commentary and currency movements will influence market sentiment in the near term.
How did the Indian rupee perform?
The Indian rupee appreciated by 23 paise, closing at 89.82, following a mild recovery in equities.
