Broader markets underperformed the benchmarks, with the Nifty Midcap index sliding 322 points to 59,389, keeping overall market breadth tilted firmly in favour of declines.
The Nifty Bank index also ended lower, shedding 108 points to close at 58,927, as profit-taking emerged in key lenders.
Global cues remain mixed, with rising Japanese bond yields signalling tighter liquidity conditions and putting pressure on equity valuations, while softer US labour data has fuelled recession worries and reinforced expectations of a more accommodative Federal Reserve, said Vinod Nair, head of research at Geojit Investments Limited.
At home, the Reserve Bank of India’s measures to stabilise the rupee have provided some support to rate-sensitive sectors. The rupee staged a sharp recovery during the session, appreciating nearly 1% against the US dollar, marking one of its strongest single-day gains in recent months.However, continued foreign fund outflows and weakness across emerging markets, even as developed economies hold up better, point to growing investor caution. While currency stability offers short-term relief, persistent global uncertainty and sustained foreign selling are likely to cap upside, keeping market sentiment tilted towards the downside, said Nair.
Among mid-cap stocks, Max Healthcare, Cochin Shipyard, Polycab, Fertilisers and Chemicals Travancore (FACT) and Colgate-Palmolive India were among the top losers, each falling around 4%.
State-run Indian Overseas Bank tumbled more than 6% after the government announced plans to offload a 3% stake via an offer for sale.In individual stocks, Akzo Nobel India plunged nearly 14% after 5.19 million shares changed hands in a block deal.
Ola Electric Mobility fell close to 5% after founder Bhavish Aggarwal sold 26 million shares at ₹34.99 apiece to repay a promoter loan.
Sammaan Capital dropped 5% from the day’s high after Delhi Police filed a fresh FIR in a probe involving its former promoters.
On the positive side, Meesho surged 20% to hit its upper circuit amid heavy trading volumes after UBS initiated coverage with a ‘buy’ rating.
Hindustan Zinc gained nearly 2% as silver prices touched record highs, while Shriram Finance rose 2% after its board announced it would consider a fund-raising proposal on December 19.
Oil marketing companies ended higher after the PNGRB notified the implementation of the ‘One Nation, One Tariff’ regime, with Indraprastha Gas jumping more than 5%.
PSU bank stocks bucked the broader market weakness, with Canara Bank gaining over 2%.
