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Stock markets fall for third day on foreign fund outflows; Sensex drops 120 points


Stock markets declined for the third consecutive day on Wednesday (December 17, 2025), with the benchmark Sensex closing lower by 120 points at a week’s low due to relentless foreign fund outflows.

The 30-share BSE Sensex edged lower by 120.21 points or 0.14% to settle at 84,559.65. During the day, it dropped 263.88 points or 0.31% to 84,415.98.

The 50-share NSE Nifty declined by 41.55 points or 0.16% to a week’s low of 25,818.55.

Among Sensex firms, Trent fell the most by 1.61%. HDFC Bank dropped by nearly 1%, emerging as a major drag on the index. ICICI Bank, Adani Ports, Bajaj Finserv, Bharat Electronics, Titan and Asian Paints were also among the laggards.

However, State Bank of India rose the most by 1.51%, helping Sensex restrict losses. Infosys, Axis Bank and Maruti were among the gainers.

“Foreign investors are pulling out funds, and emerging markets are struggling, while developed economies remain strong, showing that investors are becoming more cautious about emerging markets,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

“Selling in heavyweight stocks across sectors led to broad-based weakness, while muted cues from global markets further dampened investor sentiment,” Ajit Mishra – SVP, Research, Religare Broking, said.

Analysts said a rebound in the rupee from record low levels offers temporary relief, as global uncertainty and sustained foreign selling keep upside potential limited.

The rupee rebounded sharply by over 1% in the early session to trade at the 89 level against the U.S. dollar briefly on heavy dollar selling by banks. The rupee later pared gains to close at 90.38, up by 55 points over the last record closing low of 90.93.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,381.92 crore on Tuesday (December 16), while Domestic Institutional Investors (DIIs) bought stocks worth ₹1,077.48 crore, according to exchange data.

The BSE smallcap gauge declined 0.85% and midcap index dipped by 0.53%.

Among sectoral indices, capital goods declined by 0.96%, realty (0.81%), consumer durables, industrials (0.76%), services (0.64%).

BSE Energy, IT, metal, oil & gas, tech and BSE Focused IT were the gainers.

A total of 2,694 stocks declined while 1,475 advanced and 159 remained unchanged on the BSE.

In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index, and Hong Kong’s Hang Seng index ended in positive territory.

European markets were trading higher. U.S. markets ended mostly lower on Tuesday (December 16).

Brent crude, the global oil benchmark, jumped 2.12% to $60.17 per barrel.

On Tuesday (December 16), the Sensex tanked 533.50 points or 0.63% to settle at 84,679.86. The Nifty dropped 167.20 points or 0.64% to 25,860.10.

Published – December 17, 2025 05:09 pm IST



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