Although the benchmark indices opened flat, they traded steadily throughout the session and ultimately closed in the red.

Indian equity benchmarks, Sensex and Nifty, ended with steep losses on Monday amid a lack of domestic market triggers.

At the closing bell, the BSE Sensex closed lower by 609 points (down 0.7%).

Meanwhile, the NSE Nifty closed 225 points lower (down 0.8%).

Tech Mahindra, HCL Tech, and Reliance Industries are among the top gainers today.

Bharat Elec, Trent, and Tata Steel, on the other hand, were among the top losers today.

The GIFT Nifty was trading at  26,041, higher at the time of writing.

The BSE MidCap index ended 1.7% lower, and the BSE SmallCap index ended 2.2% lower.

Sectoral indices are trading negatively today, with stocks in the telecom sector and realty sector witnessing selling pressure.

The rupee is trading at Rs 89.9 against the US$.

Gold prices for the latest contract on MCX are trading 0.4% higher at Rs 130,617 per grams.

Meanwhile, silver prices were trading 2.1% higher at Rs 182,003 per 1 kg.

Five reasons why Indian share markets are falling:

#1 Rupee's weakness

The Indian rupee is near a record low, falling to 90.15 against the US dollar due to rising oil prices and heavy foreign capital outflow.This decline is surprising investors since India has strong GDP growth and very low inflation.The rupee hit an all-time low of Rs 90.46 on 4 December, affected by delays in the India-US trade deal and continued foreign selling in the stock market.

#2 Caution ahead of the US Fed policy outcome

Markets are watching the US Federal Reserve's interest rate decision on 10 December.Investors are selling stocks to avoid losses if the Fed doesn't cut rates as expected. If rates remain unchanged, the dollar could strengthen further, putting more pressure on the Indian market.

#3 Lingering uncertainty on the India-US trade deal

Although talks between India and the US show promise, the final deal and timing remain uncertain.A senior US official will visit India this week to continue discussions on the trade agreement.External Affairs Minister S Jaishankar said a deal could happen soon but stressed protecting workers, farmers, and the middle class.

#4 Spike in Japanese bond yields

Japanese government bond yields have risen to multi-year highs, raising concerns about the yen carry trade. Higher Japanese rates could strengthen the yen, reducing the interest advantage for investors borrowing in yen. This may force investors to unwind trades, which could negatively impact emerging markets like India.

#5 FIIs' relentless selling

Foreign investors (FIIs) have been selling Indian stocks heavily since July, offloading over Rs 1.60 lakh crore. In just the first five sessions of December, they sold Rs 104 bn worth of equities.Despite good valuations and expected earnings recovery, this outflow keeps market sentiment fragile until earnings and the India-US trade deal improve.
 

Ashoka Buildcon Jumps on BMC Order

Ashoka Buildcon shares jumped 5.8% following news that the company secured a Rs 4.47 bn order from the Brihanmumbai Municipal Corporation (BMC).

According to the company's filing, BMC awarded additional work for its existing project, Construction of Flyover Arm-1 and Arm-2 at the T-Junction on Sion Panvel Highway, Maharashtra Nagar (M/E Ward).

With this new scope, the total project cost rises to Rs 15.7 bn, and the revised completion deadline for the entire work is 13 January 2028.

Separately, the company received a show-cause notice on November 26, 2025, related to the construction of the six-lane elevated corridor from Aroor to Thuravoor Thekku section of NH-66.
 

SPML Infra Shares Soar on Project

Shares of SPML Infra rose nearly 10% on Monday after the company won a joint venture project from the Public Health Engineering Department (PHED) of Rajasthan.

The project, part of the Jal Jeevan Mission, falls under the Nonera Water Supply Project and aims to improve drinking water infrastructure in the Kota and Bundi regions.

In collaboration with Shree Hari Infraprojects Pvt. Ltd., SPML Infra will handle construction, testing, and commissioning of three intake wells and three water treatment plants with a total capacity of 118 MLD.

The work also includes building three clear water reservoirs, laying 52.6 km of pipelines, and integrating PLC and SCADA automation systems. The project comes with 10-year operations and maintenance responsibility.

With a strong presence across India, SPML Infra has delivered over 700 projects, including drinking water supply, wastewater treatment, sewerage networks, municipal waste management, power transmission and distribution, rural electrification, substations, and smart city projects.

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