Sensex, Nifty Open Lower as Year-End Selling and FII Outflows Pressure Markets; Rupee Weakens Against Dollar

Sensex and Nifty open lower amid year-end selling and FII outflows
Sensex, Nifty Start Day on a Weak Note

Mumbai, India | December 31, 2025

Indian equity markets ended 2025 on a weak note as benchmark indices Sensex and Nifty opened lower on Tuesday, reflecting selling pressure on Dalal Street. The decline was attributed largely to year-end low trading volumes and continued foreign institutional investor (FII) outflows, which dampened investor sentiment.

In early trade, the 30-share BSE Sensex slipped 209.32 points to 84,486.22, while the NSE Nifty fell 63.25 points to 25,878.85. The Indian rupee also traded weaker against the US dollar during the opening session.

Commenting on the market trend, Mangal Lal Singhania , said that the year-end weakness does not indicate a structural change in market direction, but rather reflects temporary factors such as reduced participation and profit booking.

FII Selling Weighs on Market Sentiment

Persistent foreign fund outflows and subdued cues from global equity markets continued to impact domestic equities. Exchange data showed that foreign institutional investors sold shares worth ₹2,759.89 crore on Monday, while domestic institutional investors (DIIs) provided support by buying equities worth ₹2,643.85 crore.

Top Gainers and Losers

Among Sensex constituents, Eternal, InterGlobe Aviation, Bajaj Finserv, Tata Steel, UltraTech Cement, and Kotak Mahindra Bank were among the major laggards in early trade.

On the other hand, Bharti Airtel, Mahindra & Mahindra, Adani Ports, and Reliance Industries traded in the green, offering some support to the benchmark indices.

Asian and Global Market Cues

Asian markets showed a mixed trend. Hong Kong’s Hang Seng index traded in positive territory, while South Korea’s Kospi, Japan’s Nikkei 225, and China’s SSE Composite were trading lower. US markets closed lower overnight on Monday, adding to cautious sentiment.

Meanwhile, Brent crude oil prices edged up 0.03 percent to $61.96 per barrel, providing limited relief to market sentiment.

Previous Session Snapshot

In the previous session on Monday, the Sensex had closed 345.91 points (0.41 percent) lower at 84,695.54, while the Nifty declined 100.20 points (0.38 percent) to settle at 25,942.10.

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