Indian equity benchmarks closed lower for the third consecutive trading session on Wednesday, December 17, 2025, pressured by sustained selling from foreign portfolio investors (FPIs). The benchmark BSE Sensex declined by 120 points, reflecting ongoing caution in the domestic market.
Market Performance and Key Drivers
The day's downturn was primarily fueled by foreign fund outflows, as global investors continued to pull capital from Indian equities. This persistent selling pressure overshadowed any positive domestic cues and led to a broad-based decline. The market sentiment remained risk-averse, with investors closely monitoring the movement of foreign capital.
Asian Markets Show Mixed Trends
In contrast to the weakness in Indian indices, key Asian markets presented a more positive picture on the same day. Major indices like South Korea's Kospi, Japan's Nikkei 225, China's Shanghai SSE Composite, and Hong Kong's Hang Seng all managed to end the trading session in the green. This divergence highlights the specific local pressures affecting the Indian markets, independent of the broader regional trend.
Implications and Market Outlook
The three-day losing streak underscores the significant impact of foreign institutional investor activity on market direction. When FPIs become net sellers, it often triggers a chain reaction, leading to increased volatility and downward pressure on stock prices. Analysts suggest that the market's near-term trajectory will depend heavily on the reversal of this foreign fund outflow trend. Investors are advised to watch for key triggers that could bring foreign buyers back to Indian shores, such as stable global macroeconomic conditions and attractive valuations.
The continued decline, despite positive closes in other Asian hubs, points to India-specific concerns that are currently weighing on investor confidence. Market participants will be looking ahead to corporate earnings announcements and global economic data for further direction.
