Stock Market Today: Sensex Down 260 Pts at 85,310; Nifty 50 at 26,095

Sensex slips below 85,300 and Nifty moves under 26,100 as traders react to the latest RBI rate cut, global cues, and FII flows

The Indian stock market trades lower in the mid-session on 8 December 2025. After rising sharply following the recent RBI policy decision, the market now faces profit-booking and cautious sentiment. Traders closely watch the effect of the latest interest-rate cut, global market signals, and ongoing foreign fund outflows.

Market Situation Right Now

The BSE Sensex moves around the 85,300 mark, falling more than 250 points from the previous close. Nifty 50 trades just below 26,100. Both indices start the day on a soft note, with the Sensex opening near 85,625 and the Nifty around 26,160. Gradually, selling pressure increases, pulling the indices deeper into the red.

The broader market also shows weakness. Mid-cap and small-cap indices underperform after many months of strong gains. Traders book profits in stocks that rallied recently, leading to higher volatility across segments.

Impact of RBI’s Latest Rate Cut

The market continues to react to the RBI’s monetary policy decision announced on 5 December 2025. The central bank cuts the repo rate by 25 basis points, bringing it down to 5.25%. With this, the total rate cuts in 2025 add up to 125 basis points. The RBI maintains a neutral stance.

Along with the rate cut, the RBI raised the GDP growth forecast for FY26 to around 7.3%. It also trims the inflation estimate to nearly 2%. This creates an ideal macro picture of strong growth with low inflation. Liquidity support through open-market operations and foreign-exchange swaps adds to optimism.

The market initially rallies on hopes that lower interest rates will support borrowing, investment, and equity valuations. However, as trading continues, participants focus on whether earnings growth can keep up, how the rupee will behave, and whether near-term gains are already priced into stocks.

Sectoral Performance During the Session

Different sectors move in different directions, showing clear rotation in market leadership.

Banking and financial stocks trade mixed. Private banks face selling pressure as traders worry about margins and competition for deposits, even though lower rates should help in the long run. Public-sector banks remain more stable, supported by expectations of better credit demand and lower funding costs.

IT stocks show strength and act as a defensive pocket in a weak market. A softer rupee and steady global demand help these counters.

Automobile and consumer durable stocks trade with ups and downs. These sectors usually gain from interest-rate cuts, but traders prefer to lock in profits after the recent strong performance.

Capital goods, infrastructure, and power stocks stay in focus due to strong order books and continued government spending. Expansion plans from large players such as Adani Power keep interest high in the power sector.

Across the Nifty and broader market indices, some stocks continue to rise strongly despite the weak headline trend, while several recently rallied names end up among top losers as traders exit to secure gains.

Stock-Specific Developments

Several companies move sharply due to company-related news.

Biocon attracts attention because of progress in the Biocon–BBL merger, which strengthens the business in biosimilars and contract research.

InterGlobe Aviation (IndiGo) remains active as updates emerge about capacity expansion and recovery in air traffic. The aviation sector continues to benefit from strong passenger demand, though cost pressures remain a concern.

Other active stocks include Zomato, ITC, NBCC, and HFCL, which draw interest due to expansion plans, deals, and sector-based triggers.

On the negative side, some heavyweights such as private banks, auto stocks, and PSU defence and power names drag the indices lower. Market updates highlight Bharat Electronics, the Bajaj group stocks, and IndiGo among the notable losers during the day.

Global Market Influence and Fund Flows

Mixed global cues influence Indian equities. US markets closed higher in the previous session as inflation continues to cool and expectations grow for steady interest-rate cuts by the Federal Reserve. However, Asian markets trade unevenly due to concerns about China’s economic recovery and geopolitical risks.

Foreign portfolio investors remain cautious. Recent weeks show repeated FII outflows, influenced by global risk-off positioning and earlier strength in the US dollar. Domestic institutional investors, including mutual funds and insurance companies, provide support through steady buying. Retail investors and systematic investment plan (SIP) flows continue to supply a reliable liquidity base.

Valuations and Market Narrative

Even with today’s decline, the medium-term outlook for Indian equities stays positive. Higher growth forecasts, lower inflation, and strong domestic demand paint a supportive macro picture. Corporate earnings, especially in financials, autos, manufacturing, and infrastructure, remain healthy, boosting confidence in double-digit earnings growth ahead.

However, valuations stay on the higher side. Nifty’s trailing and forward P/E ratios stand above long-term averages and above many other emerging markets. This premium reflects India’s growth advantage and strong domestic liquidity, but it also means the market remains sensitive to any negative surprises.

Near-Term Market Outlook

As trading continues, market behaviour suggests consolidation rather than a deep correction. The Nifty finds immediate support near 26,000 and the Sensex near 85,000. Resistance appears close to the recent record highs.

Overall, the Indian stock market on 8 December 2025 trades with mild weakness. Profit-booking dominates, but the broader story of strong growth, low inflation, and solid earnings continues to support long-term sentiment.