Markets opened on a cautious note on Monday morning, with benchmark indices trading in negative territory as investors remained wary ahead of key global central bank decisions, particularly the US Federal Reserve’s policy meeting scheduled for this week.
The , which closed at ₹85,712.37 on Friday, opened at ₹85,624.84 today and was trading at ₹85,415.34 at 10.10 am, down 297.03 points or 0.35 per cent. The Nifty 50 opened at ₹26,159.80 against its previous close of ₹26,186.45, and is currently at ₹26,080.70, declining 105.75 points or 0.40 per cent.
“Indian equity markets opened on a mildly negative, cautious note, as mixed global cues, persistent rupee weakness, and ongoing FII selling continue to weigh on near-term risk appetite,” said Ponmudi R, CEO of Enrich Money. “While the RBI’s recent rate cut lends support to the medium-term growth narrative, the immediate sentiment remains defensive.”
Aviation major emerged the biggest loser on the Nifty 50, plunging 3.98 per cent to ₹5,156.50, from its previous close of ₹5,370.50. Defence equipment manufacturer (BEL) fell 2.30 per cent to ₹397.55, while declined 2.10 per cent to ₹1,026.00.
dropped 1.44 per cent to ₹2,066.40, and slipped 1.38 per cent to ₹1,146.20, reflecting weakness in the financial and metal sectors.
On the gaining side, led with a 1.15 per cent rise to ₹777.15, followed by , which advanced 0.87 per cent to ₹1,584.40. gained 0.65 per cent to ₹261.60, while climbed 0.64 per cent to ₹828.50. Infosys added 0.45 per cent to ₹1,623.50, providing some support from the information technology sector.
“US Equities Advance on Softer Inflation, Fed Cut Expectations. Indian Equities Hold Steady Following RBI Rate Cut,” noted Devarsh Vakil, Head of Prime Research, HDFC Securities. “US stock futures are trading slightly subdued after two weeks of gains that pushed the S&P 500 to record weekly closes.”
Vakil added that “Indian stock markets delivered a flat weekly performance, closing near record highs despite mid-week volatility. The Reserve Bank of India’s 25 basis-point policy repo rate cut on December 5, its first reduction in six months, buoyed sentiment, alongside an upgraded FY26 GDP forecast to 7.3 per cent and a lowered inflation projection.”
Market experts highlighted that technical levels remain crucial for near-term direction. “Technically, Nifty stays bullish above 25,901 with bulls eyeing a move back towards record highs, although rupee weakness and persistent FII outflows remain notable headwinds ahead of the 10 December FOMC outcome,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, pointed to conflicting factors. “Robust economic growth and indications of earnings growth revival are supportive of markets. The massive fiscal and monetary stimulus to the economy this year has contributed to sharp revival in GDP growth as evidenced by the 8.2 per cent Q2 GDP growth print,” he said. However, he cautioned that “sustained depreciation of the rupee has been forcing FIIs to sell in the market continuously.”
Shrikant Chouhan, Head Equity Research, Kotak Securities, noted that “on daily charts, it has formed a promising reversal pattern and is currently trading comfortably above the 20-day SMA, which is largely positive. For positional traders, 26,000/85000 and 25,900/84700 would act as key support zones.”