Indian equity benchmarks commenced trading on a negative note on Thursday, December 18, 2025, mirroring a sharp downturn in global markets. The sell-off was primarily triggered by a significant correction in US technology and artificial intelligence (AI) stocks, prompting investors worldwide to book profits.
Market Opens in the Red Following Weak Global Cues
The domestic market sentiment was weighed down by overnight losses on Wall Street. The BSE Sensex opened at 84,518.33, marking a decline of 41.32 points or 0.05 per cent. Similarly, the Nifty 50 index began the session at 25,772.70, down by 45.85 points or 0.18 per cent. The broader market indices also reflected the cautious mood, with the Nifty Midcap 100 and Nifty Smallcap 100 slipping 0.10 per cent and 0.13 per cent, respectively.
Market expert Ajay Bagga explained the global context to ANI, stating that a risk-off sentiment towards tech stocks is prevailing. He highlighted concerns over the sustainability and returns on massive capital expenditure by AI hyperscalers, coupled with a lack of clear revenue traction for AI models. Bagga also pointed to specific headwinds for Indian markets, including a weak rupee, foreign portfolio investor (FPI) outflows, and fragile sentiment around US tariffs.
Nifty IT Shines as the Sole Sectoral Gainer
In a notable divergence from the global tech wreck, the Indian information technology sector displayed remarkable resilience. The Nifty IT index surged more than 1 per cent at the open, standing out as the only major sectoral index trading in positive territory. This gain came despite intense selling pressure on technology shares in the United States.
On the other hand, most other sectors faced selling pressure. The auto sector was among the worst hit, with the Nifty Auto index losing over 1 per cent. Other sectors that opened lower included:
- Nifty Pharma (down 0.66%)
- Nifty Realty (down 0.53%)
- Nifty Media (down 0.41%)
- Nifty FMCG (down 0.11%)
Technical Outlook and Global Monetary Policy in Focus
Ponmudi R, CEO of Enrich Money, provided a technical perspective on the Nifty 50. He noted that the index continues to trade within a rising channel, with the 25,800-25,700 zone acting as a critical near-term support. He stated that as long as this base holds, the broader uptrend remains intact. However, he cautioned that intensified selling could trigger a deeper correction towards the 25,500-25,400 range.
Globally, investor attention was also divided by monetary policy decisions. Four European central banks, including the Bank of England (BoE) and the European Central Bank (ECB), were scheduled to meet on the same day. Experts anticipated a potential rate cut from the BoE while expecting others to hold steady.
The overall risk-off mood was strengthened by reports of funding pullbacks in data centre investments and a broader shift of global funds towards defensive sectors. Asian markets largely echoed the weak sentiment from Wall Street, setting a cautious tone for the trading day.
