Equities Extend Losing Streak as FII Outflows, Thin Volumes Weigh on Sentiment

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

India Stocks fall

By Dehuti Jani

Dehuti Jani is an experienced project manager who also works as an independent financial journalist.

December 29, 2025 at 11:44 AM IST

Indian equities began the week on a subdued note, extending their recent losing streak as persistent foreign fund outflows and thin year-end participation dampened risk appetite. The benchmark Nifty 50 slipped 0.38% to 25,942.10, while the BSE Sensex declined 0.41% to 84,695.54, marking the Nifty’s third consecutive fall and the Sensex’s fourth. Trading activity remained muted, with average daily volumes on the Nifty continuing to trend lower in December, reflecting caution among investors amid the absence of fresh domestic triggers and lingering global uncertainties.

Sectorally, selling pressure was concentrated in information technology, realty, pharma and auto stocks, dragging the broader market lower. Power Grid, Adani Ports, Trent, HCL Technologies and BEL weighed on the Sensex, while gains in Tata Steel, Asian Paints, Hindustan Unilever, NTPC and Axis Bank offered limited support. Broader markets underperformed, with the Nifty Midcap 100 and Smallcap 100 falling 0.52% and 0.72%, respectively. Despite a generally weak tone, pockets such as media, PSU banks and FMCG ended in the green, highlighting selective buying even as overall sentiment remained cautious.

Top Movers of the Day

Defence stocks gained attention after the Defence Acquisition Council approved procurement and upgrade projects worth about ₹800 billion. These include T-90 tank overhauls, Mi-17 helicopter upgrades, acquisition of loitering munitions, and updates to procurement requests for refuellers and AWACS platforms.

Hindustan Copper surged to a 15-year high, rallying up to 15% intraday and nearly 67% in December, tracking a sharp upswing in copper prices. The stock touched ₹546 before paring gains, underscoring strong momentum in metal counters.

Vedanta gained over 2%, hitting a fresh high after being declared the successful bidder for the Depo Graphite–Vanadium block under critical mineral auctions, strengthening its strategic minerals portfolio.

Ceigall India moved into focus after securing an infrastructure order worth over ₹10 billion in Madhya Pradesh for the Indore–Ujjain greenfield four-lane highway project via its subsidiary.

Solarworld Energy Solutions jumped more than 14% after winning a 250 MWac solar PV project from NTPC Renewable Energy valued at ₹7.25 billion.

John Cockerill India rallied about 7% after ace investors Ramesh Damani and Chetan Shah picked up stakes through open-market purchases.

Vikran Engineering advanced over 9% following Letters of Award for 45.75 MW AC solar power projects in Madhya Pradesh.

Ravelcare climbed up to 12.6% after multiple bulk deals triggered strong buying interest.

NBCC (India) rose to its highest level since June after settling a long-pending land dispute with the government in the NCR region.

Dixon Technologies slipped 3.3% to a 16-month low, extending its correction to about 35% from its September peak amid continued pressure on electronics manufacturing stocks.

Timex Group India plunged nearly 9.5% after the promoter’s offer for sale opened.

Sigachi Industries extended losses for a second session, breaking below its 50-day moving average amid heavy volumes.

Coforge failed to sustain early gains despite announcing its largest-ever acquisition Encora US, as concerns lingered over funding plans via QIP.

Futures & Options
Nifty December 2025 futures ended at 25,955.80, trading at a modest premium of 13.7 points over the cash Nifty, which closed 100.20 points lower, or 0.38%, at 25,942.10. The futures premium remained narrow, reflecting cautious positioning amid weak underlying sentiment. The India VIX rose 6.22% to 9.72, indicating a pickup in near-term volatility expectations. HDFC Bank, Reliance Industries and ICICI Bank emerged as the most actively traded stock futures on the NSE, while market participants continued to remain defensive ahead of the December series expiry on 30 December 2025.

Bonds
Government bond yields edged higher on Monday as sentiment was weighed down by a larger-than-expected state government debt sale scheduled for Tuesday, even as traders looked to the Reserve Bank of India’s bond purchase later in the day for support. The benchmark 10-year G-Sec yield rose to 6.5912%, from 6.5637% on Friday, reversing part of last week’s rally. Despite Monday’s uptick, the 10-year yield had eased about 4 basis points last week, marking its biggest weekly decline since early September, helped by central bank liquidity measures.

Forex
The rupee weakened for a third consecutive session on Monday, pressured by steady corporate dollar demand routed through private banks and additional buying interest at the central bank’s reference rate. The currency closed at 89.9750 per US dollar, softer than Friday’s 89.85, after opening at 89.88 and drifting lower through the day. Traders noted that banks were willing to pay a small premium to access dollars at the RBI fixing, underscoring persistent demand.

Crypto
Bitcoin traded higher on Monday, hovering near the key $90,000 level after briefly crossing it earlier in the session, but once again struggled to sustain gains amid fading momentum and thin year-end volumes. The world’s largest cryptocurrency was last up about 2.2% at $89,663.6, reflecting another failed attempt to decisively break above the psychologically important $90,000 mark.

US Stock Futures
US stock futures edged lower early Monday after the S&P 500 touched fresh record highs, with investors turning cautious as 2025 draws to a close. Nasdaq 100, Dow Jones and S&P 500 futures slipped 0.18%, 0.11% and 0.13%, respectively, as modest profit-taking emerged in big technology names. Precious metals also paused, with gold and silver futures easing after record highs last week.

US Treasury Notes
US Treasury yields edged lower in subdued, post-holiday trade as investors reassessed the outlook for interest rates in 2026 amid thin year-end liquidity. The benchmark 10-year Treasury yield eased to around 4.11%, while the 2-year note held near 3.48%, reflecting expectations that the Federal Reserve will have room to cut rates further as inflation pressures stabilise.

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