Overview:

• Sensex fell to about 84,588 levels and Nifty also touched around 25,832 levels as the selling pressure recurred after a cautious opening.

• The Indian rupee remained around record lows, and foreign institutional investor sales totaled over ₹2,300 crores.

• PSU Banks and Metals showed positive moves, with support from IT stocks, although Mid & Small-Caps continued to remain weak.

Indian stock market today showed bearish signals. Major indices declined on the back of a weak rupee, along with foreign capital outflows. BSE Sensex was down 92 points at 84,588, and Nifty 50 was lower by 28 points at 25,832. Investors remain cautiously optimistic, keeping a diversified portfolio to navigate the volatility. Here’s a deeper look at stock market today based on Moneycontrol Live Updates. 

Market Overview

The stock market today opened cautiously. Though there was some increase in morning trade, selling pressure was seen as the day progressed. Mid-cap and small-cap indices also weakened, slipping by around 0.5% each.

Banking stocks continued to trade under pressure with the Nifty Bank down 81 points at 58,954. Meanwhile, the IT index experienced relief with an increase of 0.34% as key tech stocks, such as TCS, HCL Tech, and Infosys, traded in the green.

Sectoral Performance

PSU Banks rose 1% as Bank of India, Canara Bank, and SBI led gains. The Metal index moved up 0.3% as Hindustan Zinc shares surged 3% to a brand new 52-week high. The stock’s rally came amid the rise in silver futures of above Rs. 2.05 lakh for the first time.

On the other hand, Realty and Media indices saw some sell pressure, falling by a maximum of 0.6% each. The energy and auto sectors were trading weakly during the day.

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Share Market News: Corporate Updates

Reliance Industries' stock got a boost as Morgan Stanley has maintained an 'overweight' rating with a new target price of Rs. 1,847.  It has been observed that Reliance Industries' Rs. 5.8 lakh crores (USD 80 billion) investment since COVID is expected to see results from 2026, with all verticals turning positive in terms of free cash flow.

Akzo Nobel India experienced massive block deal transactions involving 51.9 lakh shares, accounting for 11.4% equity, valued at Rs. 1,638 crores, while trading at Rs. 3,159. This led to a decline of more than 12% after the promoter's stake disposal.

Ola Electric Mobility witnessed the selling of 2.62 crore shares by founder Bhavish Aggarwal for Rs. 91.87 crores in order to settle a promoter loan of Rs. 260 crores. This, the company said, would unpledge all the earlier pledged shares of the company carrying the 3.93% dividend.

Other major contracts bagged include NBCC India securing an order worth Rs. 332.99 crore from IIT Mandi.

Rupee Weakness Continues

Among the concerns on the share market today is the fact that the Indian rupee is at its record-low levels. The rupee opened at 91.07 per dollar but then regained a little at 90.36 levels. The Reserve Bank of India (RBI) moved aggressively to steady a faltering rupee when state-run banks were seen buying dollars on behalf of the RBI, according to traders.

Market strategist Ross Maxwell from VT Markets told investors to emphasize the importance of disciplined investing rather than investing based on fear due to the depreciation of the currency. Maxwell suggested IT service, pharmaceutical, or engineering exporters who target the global market would benefit from the fall in the rupee value.

Foreign Fund Activity

Foreign Institutional Investors (FIIs) maintained a selling spree, shedding stocks worth Rs. 2,382 crores on December 16, and were supported by Domestic Institutional Investors (DIIs), who bought stocks worth Rs. 1,077 crores. In the ongoing financial year, FIIs have sold Indian stocks above Rs. 2.67 lakh crores.

Also Read: Top Stocks to Buy With $1,000 in 2026 for Future Returns

Market Outlook  

According to technical analysts, the stock market is currently in a phase of consolidation. The Nifty has an immediate support set between the levels of 25,700 to 25,750, and the resistance is positioned between the levels of 26,000 to 26,100. Experts are taking a cautious stance and advising investors to use the 'buy on dips' strategy, aided by support levels. It is advised to hold good stocks and maintain the right asset allocation to convert difficulties into opportunities.

FAQs

1. Why did the stock market trade lower today?

The market opened lower, mainly because of persisting weakness in the rupee and foreign selling. Both these factors resulted in caution among traders, leading to selling in the benchmark indices despite sectoral support.

2. In what ways rupees’ weakness influence the Indian stock market?

The weakening Indian rupee affects market performance as there are chances of rising inflation and outflow of foreign capital. Exporting sectors like the IT industry and pharma may remain positive, but overall market mood becomes cautious, and there could be pressure on wider market indices such as Sensex and Nifty.

3. In the stock market today, which sectors fared better?

PSU bank shares were up 1% as buying started in SBI, Canara Bank, and Bank of India. Metal shares were up as Hindustan Zinc gained; IT shares were up modestly.

4. How is FII and DII activity reflected in market value?

FIIs continued to sell, which further pressurizes markets, particularly in large-cap stocks. DIIs showed some support by buying stocks, though foreign selling could not be completely countered by this influx today.

5. In light of the existing market conditions, what should investors do?

Investors may remain cautious and not engage in panic selling. It has been recommended to make quality stock selection and work towards entering the market at support levels through the concept of 'buy on dips'.