The Nifty ended 225 points lower, while the Sensex was down by 610 points.
Shrikant Chouhan,
Head, Equity Research,
Kotak Securities
Mumbai, 8 December 2025: Today, the benchmark indices corrected sharply. The Nifty ended 225 points lower, while the Sensex was down by 610 points. Among sectors, all the major sectoral indices traded in the red, but Défense and Realty indices lost the most, shedding over 3 percent.
Technically, on daily charts, it has formed a long bearish candle and also closed below the 20-day SMA (Simple Moving Average), which is largely negative. We believe that as long as the market is trading below the 20-day SMA or 26,000/85400, the weak sentiment is likely to continue. On the downside, it could slip till 25,850/84800. Further downside may also continue, potentially dragging the index to 25,750/84500. On the flip side, above 26,000/85400, we could see a one pullback rally up to 26,100-26,125/85700-85800.
Gaurav Garg, Research Analyst Lemonn Markets Desk, adds:
Indian equities declined on Monday, with the Nifty slipping a little over 1% to 25,897 and the Sensex falling nearly 800 points. The pullback was led by profit-taking in small- and midcap stocks, along with selling pressure in select index heavyweights. Market breadth remained weak, and FII outflows continued, while investors stayed cautious ahead of Wednesday’s US Federal Reserve policy announcement.
InterGlobe Aviation, Bharat Electronics, and JSW Steel were among the notable laggards, declining up to 7%, whereas HDFC Life and Tech Mahindra registered modest gains.
The broader market saw a further correction as the Nifty Smallcap100 and Midcap100 extended their recent declines. Analysts attributed the weakness to elevated valuations, unwinding of leveraged positions, and global risk-off sentiment. The rupee depreciated to 90.11 against the US dollar, while higher crude prices and a rise in the India VIX also weighed on sentiment. Persistent FII selling, influenced by uncertainty around the global rate-cut trajectory and soft cues from Asian markets, remained a key factor for domestic equities.
