CHENNAI: Indian equity benchmarks traded lower in midmorning deals on Tuesday (December 16) as weak global cues, sustained foreign fund outflows and continued volatility in the currency market kept investors cautious. After opening on a soft note, selling pressure persisted through the session, dragging frontline indices deeper into negative territory and dampening overall sentiment.
Around midmorning, the BSE Sensex was trading near the 85,000 mark, down over 400 points from its previous close, while the NSE Nifty slipped below the 26,000 level to trade around 25,950. The inability of the benchmarks to reclaim key psychological levels reflected the cautious mood prevailing on Dalal Street.
The weak tone was largely in line with subdued Asian markets, where investors remained wary amid uncertainty over global interest rates and the strength of the US dollar. This backdrop encouraged domestic traders to pare exposure to equities, particularly in rate-sensitive and globally linked sectors.
Sector-wise, metals, IT and realty stocks saw notable selling pressure, tracking concerns over global growth and demand. Banking and financial stocks also edged lower, with profit booking visible in select heavyweight lenders following recent gains. Broader markets underperformed, as mid-cap and small-cap stocks saw sharper declines, signalling a clear risk-off bias among investors.
The rupee’s continued weakness against the dollar added to market unease, raising concerns over imported inflation and corporate cost pressures. While exporters found some support from currency depreciation, gains were limited by worries over slowing global demand and earnings visibility.
Market participants said persistent foreign institutional investor selling remained a key drag, as overseas investors stayed cautious on emerging markets amid elevated global bond yields. Domestic institutional buying offered limited support but was not strong enough to offset the broader selling pressure.
Analysts expect the near-term market trend to remain cautious and range-bound, with global cues, currency movements and upcoming economic data likely to dictate direction. While India’s structural growth story remains intact, the current phase is seen as one of consolidation, with investors focusing on selective, fundamentally strong stocks rather than broad-based buying.