Sensex, Nifty Fall as FII Selling, Weak Rupee Hit Markets

Benchmark equity indices Sensex and Nifty ended lower on Friday as investors booked profits in a holiday-truncated week. Continuous selling by foreign institutional investors and a weak rupee weighed heavily on market sentiment.

The lack of fresh triggers also kept traders cautious.

Sensex and Nifty Trade Lower

At around 10 am, the Sensex traded 202.53 points lower, down 0.24 per cent, at 85,206.17. The Nifty slipped 47.75 points, or 0.18 per cent, to 26,094.35.

Both indices saw pressure across sectors, with financials and pharma stocks leading the decline. Traders chose to lock in gains after recent highs.

Rupee Weakness Hits Sentiment

The Indian rupee weakened sharply against the US dollar. It fell 23 paise to 89.94 in early trade.

Foreign fund outflows and rising crude oil prices dragged the currency lower. Forex traders also pointed to higher dollar demand from importers.

At the interbank foreign exchange market, the rupee opened at 89.84 against the dollar. It later slipped to 89.94. The currency had closed at 89.71 on Wednesday.

Both equity and forex markets remained closed on Thursday due to the Christmas holiday.

FII Selling Continues

Foreign institutional investors continued to sell Indian equities. On Wednesday, FIIs sold shares worth ₹1,721.26 crore. This marked the third straight session of net selling.

Market experts said strong economic data from the United States encouraged investors to shift funds.

Higher US GDP growth supported the American market. Strong profits in US companies, including AI firms, could push hedge funds to sell more Indian stocks in the near term.

This trend added pressure to domestic equities.

Crude Oil Prices Rise

Crude oil prices moved higher in global markets. Brent crude futures rose 0.4 percent to USD 62.48 a barrel. US West Texas Intermediate crude gained 0.4 percent to USD 58.58 a barrel.

Prices rose after the US increased economic pressure on Venezuelan oil shipments. Reports of US airstrikes against Islamic State militants in northwest Nigeria also supported oil prices.

Higher crude prices often hurt India, as the country depends heavily on oil imports.

Profit Booking Across Sectors

Profit booking dominated trade across key sectors. Several stocks saw sharp intraday losses.

Shriram Finance and Sun Pharmaceutical Industries emerged as top laggards in the Nifty 50 index. Both stocks fell up to 2 percent during early trade.

Investors chose to book profits as the year-end approached and fresh triggers remained absent.

Outlook for the Rest of the Year

With only four trading days left in 2025, experts expect markets to remain range-bound.

The expected Santa rally appears to be losing momentum. Without positive developments such as a US-India trade deal, markets may consolidate near current levels.

Cautious sentiment could continue into the final sessions of the year.

Technical View on Nifty

On the technical front, analysts see important support levels ahead.

The 26,100 level remains a key downside marker for the Nifty. An “evening star” candlestick pattern signals possible further weakness.

He expects the index to slip towards the 25,935 to 25,850 zone if selling continues. However, a move above 26,325 could revive bullish momentum and open the path towards 26,550 to 26,850.

For now, traders remain cautious as multiple headwinds weigh on market direction.

ALSO READ: Apple to Open iOS in Brazil, Allowing Third-Party App Stores and External Payments