Indian equity benchmarks extended their losing streak for the fourth consecutive session on Monday, dragged down by persistent selling from foreign investors and subdued trading activity in the final week of the year.
Market Ends Lower Amid Sustained Selling Pressure
The benchmark 30-share BSE Sensex closed the trading day on 29 December 2025 with a significant loss. The index declined by 345.91 points or 0.41 per cent to settle at 84,695.54. During the intraday session, the sell-off intensified, with the Sensex plunging as much as 403.59 points or 0.47 per cent to hit a low of 84,637.86.
Key Factors Behind the Downtrend
The primary driver for the extended market weakness has been the continuous outflow of funds from Foreign Institutional Investors (FIIs). This trend has created sustained selling pressure on key index constituents. Furthermore, trading volumes remained thin, a typical phenomenon during the year-end period as many participants are away on holiday, which can amplify price movements.
The four-day decline underscores the cautious stance of investors amid global economic uncertainties and a lack of fresh positive domestic triggers. The market has failed to find firm footing, with each attempt at recovery being met with selling at higher levels.
Implications and Market Outlook
The consistent decline over multiple sessions points to a build-up of negative sentiment. Market analysts suggest that the FII outflow trend needs to reverse for a durable recovery to take hold. The thin trading volumes are expected to persist until the new year begins, potentially leading to heightened volatility.
Investors are advised to remain selective and focus on stocks with strong fundamentals rather than making broad market bets in the current environment. The focus will now shift to global cues and any domestic data points that might emerge to provide direction to the markets in the coming sessions.
