Stock market: Sensex tanks 476 pts, Nifty below 25,850; Asian Paints, Eternal lead losers

Domestic benchmarks Sensex and Nifty opened on a lower note on Tuesday, tracking weak global cues and uncertainty over a potential US trade agreement ahead of the US Federal Reserve’s upcoming rate decision, positioning the indices for what could be a second straight session of losses.

At 9:16 am, the BSE Sensex declined 288.47 points, or 0.34 per cent, to 84,814.22 after losing nearly 476 points in early trade. The NSE Nifty was down 74.10 points, or 0.29 per cent, to 25,886.45, after briefly touching a low of 25,825.70.  

Among Sensex constituents, Asian Paints led losers, falling 1.73 per cent to Rs 2875.10. Eternal slipped 1.28 per cent, while HCL Technologies, Tech Mahindra and Trent dropped 1.04 per cent, 1.03 per cent, and 1.02 per cent, respectively.

Wall Street faced selling pressure overnight as the major indices ended the session in the red. The Dow Jones Industrial Average dropped 0.45 per cent to 47,739.32, while the S&P 500 declined 0.35 per cent to close at 6,846.51. Technology stocks also saw a slight pull-back, with the Nasdaq Composite edging down 0.14 per cent to 23,545.90.

Asian markets traded mostly lower on Tuesday. At last check, Japan’s Nikkei 225 was up 0.21 per cent to 50,688.20, while South Korea’s Kospi was down 0.72 per cent to 4,125.07. Hong Kong’s Hang Seng Index also declined 0.87 per cent to 25,541.06.

On Monday, the Sensex plunged 609.69 points, or 0.71 per cent, to finish at 85,102.69, while the Nifty declined 225.90 points, or 0.86 per cent, to end the session at 25,960.55.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the market’s inability to sustain its recent record highs, coupled with a lack of new catalysts, has led to visible investor fatigue. He added that in the absence of decisive triggers, participants are turning cautious, prompting intermittent bouts of profit-taking.

Vijayakumar said that the limited participation of retail investors in a rally driven predominantly by a handful of largecaps has deepened their sense of disillusionment. Even as the Nifty scaled a fresh record, nearly 320 constituents of the NSE 500 were still trading below their respective highs, leaving retail portfolios—largely skewed toward mid- and small-cap names—under pressure and sentiment subdued.

Amruta Shinde, Technical and Derivative Analyst at Choice Equity Broking, said Indian equities are likely to open on a weak footing on December 9, with GIFT Nifty signalling a start near 25,965 — roughly 100 points lower.

“Broader sentiment remains cautiously optimistic despite mixed global cues and the absence of significant domestic catalysts. In the near term, traders will continue to monitor global market developments, crude oil price movement, and institutional flow dynamics for clearer directional cues,” Shinde said.

“On the technical front, the Nifty now holds immediate support in the 25,800–25,850 range, while resistance is seen around 26,100–26,150, where repeated intraday rejection highlights strong overhead supply. A decisive breakout above this area will be essential for the index to regain upward momentum, while a sustained move below support may extend the ongoing consolidation,” Shinde added.