Daijiworld Media Network – Mumbai
Mumbai, Dec 10: Equity benchmark indices extended their losing streak for the third straight session on Wednesday, as investors stayed cautious ahead of the US Federal Reserve’s policy guidance for 2026. Persistent foreign fund outflows and weak global cues further dampened market sentiment.
The Sensex fell 275.01 points (0.32%) to 84,391.27, while the Nifty declined 81.65 points (0.32%) to 25,758. Among Nifty50 stocks, InterGlobe Aviation, ETERNAL and HDFC Bank were major laggards, slipping up to 3 percent. Hindalco Industries and Eicher Motors were among the top gainers, rising nearly 2 percent.
Market pressure was driven by four key factors:
Fed policy in focus:
Markets widely expect a third rate cut by the US Federal Reserve tonight. However, uncertainty persists over the Fed’s stance for 2026, with differing opinions among officials on inflation and labour market trends. The lack of clarity on who will succeed Chair Jerome Powell, whose term ends in May, has also tempered expectations of aggressive rate cuts.
“While the rate cut may be priced in, next year’s guidance, inflation amid tariff effects, and the upcoming Governor change will be key to watch,” said Harish Krishnan, Co-CIO and Head of Equity at Aditya Birla Sun Life AMC.
Weak global cues:
Major Asian markets, including Shanghai’s SSE Composite, Hong Kong’s Hang Seng and Japan’s Nikkei 225, traded lower. US markets also ended mostly weak in overnight trade.
FII selling continues:
Foreign Institutional Investors (FIIs) offloaded equities worth ?3,760.08 crore on Tuesday, marking the ninth consecutive session of net selling. Persistent FII outflows reduce liquidity and reflect risk aversion toward emerging markets.
Firm crude prices:
Brent crude rose 0.15% to USD 62.03 per barrel. Higher crude prices typically pressure domestic equities as India imports a majority of its oil, raising inflation risks and impacting corporate margins.
Technical outlook:
According to Anand James, Chief Market Strategist at Geojit Investments, “Nifty will begin today with fears of revisiting yesterday’s low of 25,732, but a collapse is less expected as intermittent upswings could be attempted. A break of 25,923 could trigger short covering, but a sharp rise is unlikely unless the index moves above 26,030.”