Domestic markets are likely to open on a flat to negative note on Monday, amid weak global cues. Gift Nifty at 26,060 suggests a gap-down opening of about 80 points.
“Indian equity markets are set to begin today’s session on a cautious note, tracking softer global cues as Asian markets trade under pressure, fostering a mild risk-off environment. GIFT Nifty signals a weak opening, with scope for some early profit-booking following the recent rally, said Ponmudi R, CEO of Enrich Money. That said, the broader domestic market structure remains constructive, underpinned by robust internal liquidity and orderly price action around key technical support zones, which continues to cushion downside risks and keep the medium-term bias intact, he added.
Meanwhile, foreign portfolio investors continued their selling.
Foreign Portfolio Investors (FPIs) withdrew ₹12,941.34 crore from the Indian markets during the week ending December 12, 2025, intensifying selling pressure across the equity and debt segments, as global headwinds and domestic currency weakness weighed on investor sentiment.
Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said: FIIs have been sustained sellers in December, so far, selling on all days. It would be difficult for FIIs to continuously sell and maintain a high short position in the market amid healthy SIP inflows, particularly when the economy is doing well, and earnings growth prospects are improving. It is important to understand that rupee depreciation, sustained FII selling, delays in finalising the US-India trade deal, and the ongoing AI trade are all temporary drags on markets. The most important factor that will dictate the market’s direction is earnings growth, and this looks promising for FY 27. So far in December, FIIs have sold equity worth Rs 15,959 crores through the exchanges. This sales figure has been completely eclipsed by the DII buying for Rs 39965 crores during this period. Sustained selling in India, when prospects for growth and earnings look bright, is not a sustainable policy.
“Therefore, going forward, FII selling is likely to decline said Vijayakumar. He added that a healthy feature of retail investors’ investment behaviour is the steady inflows into mutual fund SIPs, which have been consistently above Rs 29,000 crore over the last three months. This has strengthened the DIIs in the FIIs vs DIIs tug of war and has enabled the DIIs to absorb the sustained selling by FIIs,” he added.
“As long as key technical supports hold, the broader bias continues to favour a buy-on-dips approach rather than aggressive selling. Traders are advised to stay selective, manage risk prudently, and avoid chasing momentum at higher levels while aligning positions with the prevailing trend,” he said.
Meanwhile, major equities across Asia-Pacific are down in early trading on Monday.