Indian equity benchmarks opened lower on Friday as investors locked in profits during a shortened trading week, while persistent selling by foreign institutional investors (FIIs) added pressure on sentiment.
Around 10 am, the BSE Sensex was down 202.53 points, or 0.24 percent, trading at 85,206.17. The NSE Nifty50 declined 47.75 points, or 0.18 percent, to 26,094.35.
Why markets are under pressure
Rupee weakness:
The Indian rupee weakened sharply, slipping 23 paise to 89.94 against the US dollar. The fall was driven by continued foreign fund outflows, firm crude oil prices and increased dollar demand from importers. Traders also pointed to uncertainty surrounding global trade negotiations and a weak trend in domestic equities as additional headwinds. The currency had closed at 89.71 on Wednesday, with forex markets shut on Thursday due to Christmas.
Sustained FII selling:
Foreign investors remained net sellers for the third straight session, offloading equities worth Rs 1,721.26 crore on Wednesday. Market experts believe the strong performance of the US economy is influencing global fund flows. According to Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments, robust US GDP growth of 4.3 percent in the third quarter of 2025 and improving corporate profitability—especially in AI-linked firms—could prompt hedge funds and other agile investors to further trim exposure to Indian markets in the near term.
Rising crude oil prices:
Global oil prices edged higher, adding to concerns for an import-dependent economy like India. Brent crude rose 0.4 percent to USD 62.48 per barrel, while US West Texas Intermediate gained a similar margin to USD 58.58 per barrel. Prices moved up after the US tightened economic pressure on Venezuelan oil exports and conducted airstrikes against Islamic State militants in northwest Nigeria.
Profit booking across sectors:
Selling pressure was visible across key sectors, with investors choosing to book gains ahead of the year-end. Stocks such as Shriram Finance and Sun Pharmaceutical Industries featured among the top losers on the Nifty50, falling up to 2 percent in intraday trade. Analysts noted that with only a few trading sessions left in 2025, the much-anticipated Santa rally appears to be losing momentum in the absence of fresh positive triggers like progress on a US–India trade agreement.
Technical outlook
From a technical perspective, Anand James, Chief Market Strategist at Geojit Investments, highlighted that the Nifty’s 26,100 level remains a crucial support zone for the second session in a row. He pointed out that an “evening star” candlestick pattern has emerged, indicating the possibility of further downside towards the 25,935–25,850 range. On the upside, a sustained move above 26,325 could pave the way for a rally towards 26,550–26,850, he said.
Overall, analysts expect markets to remain range-bound in the near term, with volatility likely to persist amid global uncertainties and year-end positioning by investors.
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