Sensex Falls 300 Points, Nifty Dips Below 25,950

The Indian stock market experienced a downturn in early trading today, December 15, with both the Sensex and Nifty indices slipping into negative territory. This decline interrupts a two-session streak of gains, driven by widespread selling pressure. Investor sentiment was negatively affected by a weakening rupee, unfavorable global economic signals, and other contributing factors.

Around 9:50 am, the Sensex had fallen by over 320 points, a decrease of approximately 0.4%, reaching 84,944. Simultaneously, the Nifty 50 experienced a drop of around 112 points, also about 0.4%, settling at 25,935.

Almost all sectoral indices were trading lower, with the exception of Nifty Media. The Nifty Auto, Nifty Realty, and Nifty Oil & Gas indices each experienced declines of around 1%. Within the Nifty Media index, PVR INOX, DB Corp., and Sun TV Network shares saw gains between 2% and 4%. Automobile companies faced significant losses in early trading, with Mahindra & Mahindra and Eicher Motors shares each falling by 1.5%. Among the Nifty 200 companies, Hyundai Motors shares dropped by over 2%.

Several key factors are contributing to the market's current downturn:

• Falling Rupee:** The rupee has continued its decline, hitting a new record low of 90.6 against the US dollar on Monday. This marks the third consecutive session of new lows for the Indian currency. The rupee's depreciation is attributed to factors such as the lack of a trade agreement between India and the US, and weak capital flows.
• Persistent FII Outflows:** The Indian markets are experiencing continued foreign outflows. On Friday, foreign institutional investors (FIIs) were net sellers, selling equities worth Rs 10,719.95 crore, compared to purchases of Rs 10,323.69 crore, according to the NSE.
• Weak Global Cues:** Global markets closed negatively on Friday. The Nasdaq Composite decreased by 1.6%, continuing its tech-driven pullback. The S&P 500 fell by about 1%, following a recent record high, and the Dow Jones Industrial Average declined by 0.5%.

Japan's central bank is anticipated to raise interest rates this week, driven by strong business sentiment among major Japanese manufacturers, which has reached a four-year high in the three months leading up to December. Expectations of this rate hike have led to a fall of around 800 points (nearly 1.6%) in the Nikkei 225 on Monday morning.

Stocks in China and Hong Kong also experienced declines on Monday due to weak economic data and increasing default risks from the property developer Vanke. New home prices in China continued to fall last month, and factory output and retail sales experienced their slowest growth in over a year. New bank loans also increased less than expected.

**Investment Advice:**

Choice Broking suggests that traders exercise caution and consider a buy-on-dips approach near support levels, using tight stop-losses. They advise against aggressive long positions until key resistance levels are decisively breached and recommend partial profit booking on pullbacks in this volatile environment.

Technically, the Sensex faces immediate resistance between 85,700 and 85,800, which may limit early upward movement. Support around 84,700–84,800 could provide a cushion during pullbacks. Aakash Shah, Technical Research Analyst at Choice Equity Broking, anticipates a constructive, upward-tilted session for the Sensex, with sectoral rotation supporting the short-term positive trend despite ongoing macro uncertainties.