Sensex Falls 221 Points, Nifty Down 60 in Post-Christmas Trade Amid FII Selling
Indian equity benchmarks resumed trading after Christmas with notable declines, as the Sensex fell 0.26% and Nifty dropped 0.23% amid persistent foreign institutional investor selling of ₹1,721 crore. While defence and mining stocks like BEL and Coal India gained, pharmaceutical and financial stocks faced selling pressure, with technical analysts recommending level-based trading strategies in the low-volatility environment.
*this image is generated using AI for illustrative purposes only.
Indian equity benchmarks opened on a subdued note on Friday as trading resumed after the Christmas holiday, with both indices facing selling pressure amid thin volumes and continued foreign institutional investor outflows. The Sensex declined 220.94 points or 0.26% to ₹85,187.76, while the Nifty fell 60.55 points or 0.23% to 26,081.55 in early trade.
Market Opening and Performance Metrics
The opening levels reflected a more pronounced decline compared to earlier expectations, with market participants attributing the cautious start to mixed global cues and persistent FII selling pressure. The Sensex opened at ₹85,225.28 against its previous close of ₹85,408.70, while the Nifty opened at 26,081.55 compared to its Wednesday close of 26,142.10.
| Index: | Opening Level | Previous Close | Change (Points) | Change (%) |
|---|---|---|---|---|
| Sensex: | ₹85,225.28 | ₹85,408.70 | -220.94 | -0.26% |
| Nifty 50: | 26,081.55 | 26,142.10 | -60.55 | -0.23% |
Foreign Investment Outflows Impact Market Sentiment
The negative sentiment was compounded by persistent FII outflows, with foreign investors selling equities worth ₹1,721.00 crore on Wednesday. Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, noted that "sentiment remains fragile amid low holiday volumes, FII selling of ₹1,721.00 crore and lack of strong domestic cues, keeping markets range-bound and volatile."
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, observed that "with only four more trading days left for the year, what looked like a Santa rally, appears to be running out of steam. In the absence of fresh triggers like a US-India trade deal, the market is likely to consolidate around the present levels."
Sectoral Performance and Stock Movements
Among sectoral movements, defence and mining stocks showed resilience in early trade, while pharmaceutical and financial stocks witnessed selling pressure. The divergent performance highlighted selective buying interest in specific sectors despite the overall market weakness.
| Top Gainers: | Price (₹) | Change (%) |
|---|---|---|
| Bharat Electronics: | 405.70 | +1.43% |
| Coal India: | 405.85 | +0.87% |
| Adani Enterprises: | 2,237.20 | +0.65% |
| Cipla: | 1,504.60 | +0.55% |
| Titan Company: | 3,928.90 | +0.50% |
| Top Decliners: | Price (₹) | Change (%) |
|---|---|---|
| Sun Pharma: | 1,716.80 | -1.16% |
| Shriram Finance: | 963.25 | -1.07% |
| Tata Steel: | 168.50 | -0.92% |
| Eicher Motors: | 282.60 | -0.79% |
| Bajaj Finance: | 1,004.10 | -0.75% |
Technical Analysis and Trading Strategies
Technical analysts advised caution with level-based trading strategies given the current market environment. Shrikant Chouhan, Head Equity Research at Kotak Securities, said, "We believe that the intraday market texture is non-directional; hence, level-based trading would be the ideal strategy for day traders. On the higher side, 26,250/85,750 remains the crucial resistance zone for the bulls, whereas 26,100/85,300 would be the immediate support area."
Aakash Shah, Technical Research Analyst at Choice Equity Broking, highlighted that "India VIX continues to trade near multi-month lows, reflecting very low volatility and suggesting limited intraday swings. This environment favors range-bound trading and buy-on-dips strategies, with strict stop-losses advised amid thin holiday volumes and year-end positioning."
| Technical Levels: | Nifty | Sensex |
|---|---|---|
| Resistance: | 26,250 | 85,750 |
| Support: | 26,100 | 85,300 |
| Strategy: | Level-based trading | Buy-on-dips with stop-loss |
Medium-Term Outlook and Investment Strategy
Despite near-term headwinds, investment strategists remained constructive on the medium-term outlook. Vijayakumar added that "the sustained buying by the cash rich DIIs will support the market and prevent a sharp pull back. The ideal investment strategy for investors now is to remain invested in high quality large caps and slowly accumulate them on declines. A rally in the market in the early stage of 2026 is on the cards."
Ponmudi R, CEO of Enrich Money, noted that global factors remained supportive. "US equities closed at record highs amid holiday-thinned volumes and growing expectations of further interest rate cuts by the US Federal Reserve, while a buoyant tone across Asian markets is providing a supportive global backdrop," he said.
In commodities, precious metals continued their rally with gold and silver approaching record highs on safe-haven demand, while crude oil prices edged higher toward $58.50 per barrel on geopolitical tensions.
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