The Indian stock market closed in the red on Wednesday, December 17, 2025, as benchmark indices failed to hold on to early gains amid weak global cues and selling pressure in heavyweight banking stocks. The BSE Sensex settled at 84,559.65, down 120.21 points or 0.14%, while the NSE Nifty50 ended at 25,818.55, losing 41.55 points or 0.16%.
Banking Stocks Lead Decline
The downturn was largely attributed to weakness in leading private sector banks. HDFC Bank and ICICI Bank emerged as the top drags, pulling the indices lower with notable declines. Persistent foreign institutional investor (FII) outflows and concerns over global interest rate trajectories added to the selling pressure. Analysts highlighted that the banking sector, which has been underperforming in recent sessions, continues to weigh heavily on overall market sentiment.
Sectoral Performance
While banking and financial stocks were the major laggards, FMCG and consumer goods stocks also witnessed weakness, reflecting subdued demand outlooks. On the other hand, select PSU banks and energy stocks managed to provide some cushion to the indices. Notably, SBI gained nearly 2%, supported by strong investor interest in public sector banking counters.
Global and Domestic Factors
Market experts pointed out that mixed global signals, sluggish US jobs data, and uncertainty over the Federal Reserve’s rate trajectory kept investors cautious. Additionally, the rupee’s weakness and delays in potential trade agreements added to the negative sentiment. Domestically, the absence of fresh triggers and profit-booking after recent rallies contributed to the muted close.
Market Outlook
Despite the short-term weakness, analysts believe that the broader market trend remains resilient, supported by strong fundamentals in sectors like infrastructure, energy, and select midcaps. However, volatility is expected to persist as global macroeconomic factors continue to influence investor behavior. Traders are advised to remain cautious in the near term, especially in banking and FMCG stocks, while long-term investors may look for opportunities in sectors with strong growth visibility.
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Conclusion
The closing bell on December 17 reflected a cautious mood in Indian equities, with the Sensex slipping 120 points and the Nifty ending below 25,850. Banking heavyweights HDFC Bank and ICICI Bank were the primary drags, while PSU banks like SBI offered some relief. With global uncertainties and domestic profit-booking at play, markets are likely to remain volatile in the short term, making expert guidance and disciplined strategies crucial for investors.
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