Market Wrap, Dec 9: NIFTY50 ends at 25,839, SENSEX falls 436 pts as IT stocks drag; broader market recovers, Nifty Smallcap 100 outperforms

The Indian stock market closed lower for the second consecutive session on Tuesday, December 9, weighed down by IT stocks ahead of trade talks between India and the US. A weak global sentiment also made the investors nervous.

A delegation from the office of the US Trade Representative, led by Deputy USTR Ambassador Rick Switzer, will visit India from December 9–11, 2025. Discussions on December 10 and 11 are expected to cover a wide range of trade-related issues.

The decline also followed comments from US President Donald Trump hinting at possible new tariffs on Indian rice, heightening worries that trade negotiations between the two countries may remain unresolved.

Meanwhile, all eyes have now turned to the US Federal Reserve meeting slated to start on Tuesday. Along with a rate cut expectation, the meeting will also begin to set expectations for President Donald Trump's upcoming nominee to lead the central bank, Reuters reported.

According to exchange data, on Monday, the foreign institutional investors (FIIs) sold shares worth ₹655.59 crore, while the domestic institutional investors (DIIs) bought equities worth ₹2,542.49 crore on a net basis.

Globally, most of the Asian markets settled lower as investors turned cautious about the pace of easing by the Federal Reserve beyond this week's expected rate cut.

Hong Kong's Hang Seng declined 1.48%, Taiwan Weighted declined 0.43%, South Korea's KOSPI fell 0.27%, and China's Shanghai Composite tumbled 0.37%, while Japan's Nikkei ended 0.14% higher.

On Wall Street, major indices ended lower on Monday, with most S&P 500 sectors slipping, as Treasury yields climbed and investors awaited the Federal Reserve’s monetary policy decision due in two days.

The S&P 500 index declined 0.35%, the Dow Jones Industrial Average fell 0.45%, and the tech-heavy Nasdaq dropped 0.14%.

Here are the key developments of Tuesday’s session that you need to know

As many as 3,209 stocks traded on the NSE on Tuesday. Out of this, 1,982 advanced and 1,135 declined, while 92 scrips remained unchanged.

This indicates that the market's breadth is favourable towards advances.

A total of 16 stocks hit their 52-week highs, while 442 stocks touched their one-year lows. Besides, 56 stocks hit their upper circuit limits, and 81 touched their lower circuit bands on Tuesday.

The market capitalisation of NSE-listed companies stood at ₹462.58 lakh crore by the end of the session.

The volatility index India VIX slumped 1.55% to close at 10.95 levels.

Led by Godfrey Phillips India (4.69%), Vodafone Idea (4.57%) and Tube Investments of India (3.83%), the Nifty Midcap 100 index rose 0.32% to end at 59,676.20.

The Nifty Smallcap 100 index outperformed, advancing 1.14% to 17,245.80, driven by strong contributions from Kaynes Technology India (14.42%), PG Electroplast (4.59%), and Delhivery (4.25%).

Among sectors, Nifty IT was the biggest loser, falling 1.19%, followed by Nifty Auto (-0.72%), Nifty Pharma (-0.52%), Nifty Metal (-0.29%) and Nifty Oil and Gas (-0.17%).

On the flip side, Nifty Consumer Durables (1.31%), Nifty PSU Bank (1.29%), Nifty Realty (0.95%) and Nifty Media (0.7%) were the top gainers.

On Tuesday, 33 stocks declined on the NIFTY50 index, while 17 settled in green.

Asian Paints was the biggest losing stock, tumbling 4.6%, followed by Tech Mahindra (-1.9%), HCL Technologies (-1.82%), Wipro (-1.53%) and Tata Steel (-1.52%).

On the contrary, Eternal (2.28%), Titan Company (1.94%), Adani Enterprises (1.53%), InterGlobe Aviation (1.31%) and Shriram Finance (1.17%) were the top contributors on the 50-share index.