Market Nervousness: Sensex & Nifty Fall for 3rd Day Ahead of Fed Decision

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10 December 2025, Bearish/Cautious, India VIX: 10.91 (-0.36%)

Indian Stock Market Today: The domestic benchmark indices extended their losing streak to the third consecutive session on Wednesday, December 10, 2025. The Indian Stock Market Today remained gripped by caution as investors lightened their positions ahead of the crucial US Federal Reserve interest rate decision scheduled for later tonight.

Market Open and Starting Behaviour

The market opened on a negative note, with the Nifty 50 slipping below the 25,800 mark in early trade, tracking mixed global cues. Throughout the session, the index remained volatile, oscillating between gains and losses. Attempts to recover were met with selling pressure at higher levels, particularly in the IT and Consumer Durable sectors.

The broader market sentiment was weak, with midcap and smallcap indices underperforming the benchmarks significantly, falling over 1% each.

Index Performance Table

Index	Open	High	Low	Close	Change	% Change
Nifty 50	25,810.20	25,947.65	25,734.55	25,758.00	-81.65	-0.32%
Sensex	84,450.00	85,020.34	84,313.62	84,391.27	-275.01	-0.32%
Bank Nifty	59,100.00	59,250.00	58,850.00	58,960.40	-261.95	-0.44%
India VIX	10.95	11.20	10.80	10.91	-0.04	-0.36%

Key Takeaway

The key takeaway from the Indian Stock Market Today is the decisive close of Nifty below the 25,800 support level. This signals a weakening technical structure. The market breadth was negative, with declines outnumbering advances. The sharp correction in broader markets (Midcap 100 down 1.12%) indicates that retail investors are booking profits or exiting positions in high-beta stocks ahead of the global event.

Reason Behind the Market Movement

1. US Fed Policy Anxiety: The primary driver was nervousness regarding the US Fed’s monetary policy outcome. While a 25 bps rate cut is expected, the market is anxious about the commentary on future rate cuts in 2026 given sticky inflation.
2. Persistent FII Outflows: Foreign investors continue to sell Indian equities, dampening sentiment.
3. Sectoral Drag: Consumer Durables and IT stocks faced heavy selling. IT stocks are specifically sensitive to US economic outlooks.
4. Global Uncertainty: Rising bond yields in Japan and uncertainty over US-India trade talks (specifically regarding potential tariffs) weighed on the market.

If Expiry Related Movement

While today was not a major derivative expiry day, the positioning for tomorrow’s weekly Nifty expiry has turned bearish. Call writers have aggressively added positions at 25,800 and 26,000 strikes, indicating that the upside is capped for now.

Top Gainer and Losers (Nifty 50)

Despite the weak market, some defensive and value pockets saw buying interest.

• Top Gainers:
  • Eicher Motors (+1.54%): Showed strength, leading the gainers list.
  • Hindalco (+1.07%): Metal stocks showed resilience.
  • HDFC Life (+1.06%): Insurance sector saw defensive buying.
  • Tata Steel (+1.00%): Recovered from recent lows.
• Top Losers:
  • InterGlobe Aviation (IndiGo) (-3.17%): continued to face selling pressure, ending as the top loser in the index.
  • Eternal (formerly Zomato) (-3.09%): New-age tech stocks faced high-beta selling.
  • Trent (-1.77%): Retail stocks witnessed profit booking.
  • Bharti Airtel (-1.27%): Dragged the index down.

Institutional Activity

• FII (Foreign Institutional Investors): The trend remains negative. In the previous session (Dec 9), FIIs sold ₹3,760 Crores, and today’s session likely saw continued selling pressure given the market depth.
• DII (Domestic Institutional Investors): DIIs bought ₹6,224 Crores in the previous session, acting as the sole support system for the market.

Tomorrow Prediction

The outlook for tomorrow (Thursday, Weekly Expiry) heavily depends on the US Fed’s statement tonight.

• Nifty 50: The index has closed near its monthly low. Immediate support is at 25,700. If this breaks, the slide could extend to 25,500. On the upside, 25,900 is now a strong resistance.
• Bank Nifty: Needs to hold 58,800. A break below this level can trigger a sharp fall towards 58,400.

Trading Strategy for Tomorrow

• Scenario 1 (Fed Dovish – Positive): If Fed cuts rates and signals more cuts, markets may gap up. Buy Nifty above 25,900. Target: 26,100.
• Scenario 2 (Fed Hawkish – Negative): If Fed signals a pause or “higher for longer”, market may gap down. Sell Nifty below 25,700. Target: 25,550. Stop Loss: 25,800.
• Stock Specific: Avoid high PE stocks like Trent and Eternal for now. Look for buying opportunities in large-cap private banks if Bank Nifty stabilizes.

Conclusion & Expert View

The Indian Stock Market Today reflects a “risk-off” mood. Experts advise staying light on positions overnight. The breach of 25,800 is a warning sign for bulls. “Patience is the key virtue right now; let the event risk pass before deploying fresh capital.”

FAQ

Q: Why did Zomato (Eternal) share price fall today?

A: Eternal (Zomato) fell over 3% as part of a broader sell-off in high-growth, high-valuation stocks ahead of the Fed meeting.

Q: What is the Nifty prediction for tomorrow?

A: Nifty is expected to remain volatile with a negative bias. Key support to watch is 25,700.

Q: Did the market crash today?

A: It wasn’t a crash but a steady correction. Nifty fell 0.32%, but midcaps fell over 1%, indicating more pain in individual stocks.

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