Why Did Sensex and Nifty Drop in Early Trade?
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Synopsis
In a concerning start to the trading day, Indian equity indices Sensex and Nifty experienced a decline due to weak signals from Asian markets. Investors are urged to remain cautious as market conditions evolve and shifts in consumer sentiment create uncertainty.
Key Takeaways
- Sensex opened nearly 200 points lower.
- Nifty trading down by 95 points.
- Market indecision reflected in the consolidation range.
- Main resistance levels at 26,150–26,200.
- Key supports identified at 25,900 and 25,850.
Mumbai, Dec 16 (NationPress) The Indian equity benchmark indices began Tuesday's trading day on a downward trend, reflecting negative signals from Asian markets.
Initial selling pressure caused both the Sensex and the Nifty to decline in the early trading hours.
The Sensex opened nearly 200 points lower at approximately 85,025 and further dipped to around 300 points down shortly after.
Meanwhile, the Nifty faced similar pressure, trading lower by 95 points, or 0.4 percent, at about 25,935.
This index continues to fluctuate within a consolidation range of 25,900–26,100, highlighting a period of market indecision.
“Immediate resistance is observed at 26,150–26,200, with a significant breakout possibly leading towards 26,300,” analysts stated.
“Conversely, critical support levels are identified at 25,900 and 25,850 in the near term,” they added.
Eternal emerged as the largest loser among the Sensex 30 stocks, dropping nearly 3 percent.
Other major laggards during early trading included Axis Bank, HCL Technologies, Infosys, and Titan.
In contrast, Bharti Airtel provided a measure of support to the market, rising over 1 percent.
The weakness extended beyond the leading indices, as broader markets also experienced selling pressure.
The BSE MidCap and SmallCap indices were both down around 0.4 percent. On the sectoral front, stocks in the metal and financial sectors were trading in the negative during the morning session.
Asian markets predominantly declined, reflecting an overnight drop on Wall Street. Investor sentiment remained cautious as funds continued to withdraw from US artificial intelligence-related stocks.
Japan’s Nikkei 225 fell by 1.27 percent, while South Korea’s Kospi extended its losses for the second consecutive session, decreasing by 0.75 percent. Australia’s S&P/ASX 200 showed little change.
Investor activity on Monday displayed mixed trends, with foreign institutional investors selling shares worth Rs 1,427.57 crore, while domestic institutional investors stepped in as buyers, acquiring equities worth Rs 1,734.91 crore.
Point of View
I believe it is crucial for our audience to be informed about the current market trends. The recent decline in the Sensex and Nifty serves as a reminder of the volatility inherent in financial markets. It’s important for investors to stay updated and make informed decisions, considering both domestic and global economic cues.
NationPress
23/12/2025
Frequently Asked Questions
What caused the decline in Sensex and Nifty?
The decline is primarily attributed to negative cues from Asian markets and initial selling pressure in the trading session.
What are the key support levels for Nifty?
Key support levels for Nifty are identified at 25,900 and 25,850.
Which stocks were the biggest losers?
Eternal was the biggest loser among Sensex 30 stocks, falling nearly 3 percent, along with Axis Bank, HCL Technologies, Infosys, and Titan.
How did Asian markets perform?
Asian markets largely experienced declines, mirroring the overnight drop on Wall Street, with Japan's Nikkei 225 falling by 1.27 percent.
What should investors watch for moving forward?
Investors should monitor key resistance levels and market sentiment to make informed decisions in this volatile atmosphere.
