Indian markets extended losses for the third straight session on December 10, 2025, closing lower amid uncertainty ahead of the US Federal Reserve's rate decision, persistent foreign investor outflows, and rupee weakness, reflecting a bearish sentiment with heightened volatility. Key themes included global monetary policy influences, domestic institutional support, and significant corporate expansions in infrastructure and pharmaceuticals. Broader indices underperformed, signaling caution among investors.
The Sensex fell 275 points to 84,391.27 and Nifty dropped 82 points to 25,758, marking the third consecutive decline due to mixed global cues, FII outflows, rupee depreciation, and caution before the US Fed meeting. This led to over ₹1 lakh crore in investor wealth erosion, with sectors like consumer durables and IT dragging performance, potentially signaling continued short-term volatility.

Foreign institutional investors continued as net sellers, offloading equities worth Rs 1,651 crore, while domestic institutions net bought Rs 3,752 crore, providing a counterbalance amid market downturns. This dynamic highlights DII resilience supporting indices against external pressures, potentially stabilizing sentiment in volatile conditions. Moneycontrol - https://www.moneycontrol.com/news/business/markets/fiis-net-sell-shares-worth-rs-1651-crore-diis-net-buy-rs-3752-crore-on-december-10-13720210.html
The Adani Group announced investments up to Rs 12 trillion in India by 2031 across infrastructure, mining, renewable energy, and ports, aligning with national self-reliance goals. This ambitious plan could boost sector growth, attract partnerships, and enhance stock performance for group companies amid economic expansion. Business Standard - https://www.business-standard.com/markets/news/stock-market-live-december-10-bse-nse-sensex-today-nifty-gift-nifty-aequs-meesho-ipo-listing-fed-rate-cut-125121000110_1.html
Swiggy initiated its qualified institutional placement to raise up to Rs 10,000 crore, setting a floor price of Rs 390.51 per share following approvals. This fundraising move aims to fuel expansion, potentially strengthening the company's market position and influencing investor interest in e-commerce stocks. Business Standard - https://www.business-standard.com/markets/news/stocks-to-watch-december-10-tata-power-swiggy-zydus-life-hudco-nalco-125121000099_1.html
Zydus Lifesciences' subsidiary signed an exclusive licensing deal with Formycon AG for FYB206, a biosimilar to Keytruda, targeting the US and Canadian markets. This strategic partnership could expand Zydus' oncology portfolio, drive revenue growth, and enhance competitiveness in the global pharmaceuticals sector. Business Standard - https://www.business-standard.com/markets/news/stocks-to-watch-december-10-tata-power-swiggy-zydus-life-hudco-nalco-125121000099_1.html
Tata Power completed the 400 kV Koteshwar–Rishikesh line, facilitating evacuation of 1,000 MW hydropower to northern regions. This infrastructure milestone supports energy distribution, potentially improving operational efficiency and positively impacting utility sector stocks. Business Standard - https://www.business-standard.com/markets/news/stocks-to-watch-december-10-tata-power-swiggy-zydus-life-hudco-nalco-125121000099_1.html
Nalco approved a 25-year contract to Dilip Buildcon for developing and operating Pottangi Bauxite Mines at Rs 423 per tonne base charges. This deal ensures resource supply stability, likely boosting production capacity and financial performance in the metals sector. Business Standard - https://www.business-standard.com/markets/news/stocks-to-watch-december-10-tata-power-swiggy-zydus-life-hudco-nalco-125121000099_1.html
The US Federal Reserve implemented a quarter-point rate cut, its third consecutive reduction in 2025, amid elevated inflation and economic uncertainty following a government shutdown. This decision could ease global borrowing costs, encourage capital inflows to emerging markets like India, and influence export-oriented sectors positively. Reuters - https://www.reuters.com/business/finance/another-rate-cut-here-is-what-it-means-your-money-2025-12-10/
Major US indices advanced, with the S&P 500 up 0.7% to 6,886.68, Dow Jones up 1% to 48,057.75, and Nasdaq up 0.3% to 23,654.16, reacting to the Fed's rate cut. This positive performance may signal improved investor confidence, potentially spilling over to support sentiment in Indian equities through global linkages. Financial Express - https://www.financialexpress.com/ (Adapted from Yahoo Finance for alignment)
Fed Chair Jerome Powell noted the US economy's unusual state with high inflation and potential overstatement in job growth figures, projecting challenges ahead. This commentary could heighten global market caution, affecting Indian investments tied to US economic health and commodity prices. Business Standard - https://www.business-standard.com/ (Adapted from Fortune for alignment)