The Indian stock market stayed under pressure for the fourth straight session on Monday, December 29, as thin year-end liquidity, sustained selling from overseas investors, and a lack of fresh triggers have kept sentiment subdued.
Though the market showed limited losses during the first half, the decline deepened after metal stocks joined the sell-off amid a sharp crash in precious metals, causing the Nifty 50 to drop another 0.40% to 25,942, while the Sensex also fell 0.41% to 84,695.
Broader markets also closed lower, with the Nifty Midcap 100 falling 0.52%, while the Nifty Smallcap 100 inched up 0.78%.
All major sectors ended in the red, led by consumer durables, which dropped 1%, followed by realty and IT, down 0.84% ​​and 0.72%, respectively. On the upside, only the media sector closed higher, surging 0.62%.
FPI selling in the secondary market has reached 2,31,990 crore in 2025, marking the highest-ever annual outflow. Out of the last 12 months, FPIs were net buyers in only four: March, April, May, and June.
Multiple factors affected their sentiment, including delays in a trade deal with the US, rupee weakness, stretched valuations, India’s relatively lower exposure to the AI ​​boom, and a recovery in other Asian markets offering more attractive valuations. Together, these factors accelerated FPIs’ selling spree.
Profit booking hits railway stocks
Railway stocks witnessed profit booking following a strong rally in recent sessions, with Indian Railway Finance Corporation falling 5.5% to 126.4 apiece. Others, including Rail Vikas Nigam and Ircon International, also fell 5.4% and 3.2%, respectively.
EMS stocks such as Dixon Technologies and Syrma SGS Technology posted losses of 3.6% and 3.1%. Meanwhile, metal stocks experienced a sharp decline, coinciding with a pullback in precious metals.
Stocks such as Hindustan Zinc, NMDC, and National Aluminum Company fell 3%, 2.1%, and 2%, respectively. Auto and auxiliary stocks, including Craftsman Automation, Olectra Greentech, Ola Electric, JBM Auto, and Minda Corporation, dropped between 5% and 2%.
MMTC leads the charge; HEG, HFCL follow with strong gains
Among the top performers, MMTC led the gains, surging 10% to 70.70 per share, while HEG and HFCL rose sharply by 7.2% and 5.5%, respectively. Extending its winning streak to the seventh straight session, Shipping Corporation rallied another 233 to reach a three-week high.
Similarly, Graphite India shares remained firm for the sixth consecutive session, gaining 3.25% to 601.75 apiece. Motherson Sumi Wiring and Emami, after a steady decline in recent sessions, rebounded with gains of 3.5% each.
Honasa Consumer also closed higher, rising 3.2% to 277 per share, while HBL Engineering, PTC Industries, NLC India, Force Motors, Hindustan Copper, and 11 other Nifty 500 constituents ended the day with gains exceeding 2%.
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