Domestic stock market in series of losses...concern among investors

The correction phase in the Indian stock market continued on Wednesday, with benchmark indices closing lower amid sustained selling pressure. The Sensex dropped 275 points to finish at 84,391, while the Nifty declined by 81 points to settle at 25,758. This marks the lowest closing level for both indices since November 11.

Over the past three sessions, the ongoing correction has wiped out nearly Rs. 8 lakh crore in market capitalization of BSE-listed companies. Market analysts attribute the decline to persistent FPI selling, the weakening rupee against the US dollar, and uncertainty surrounding the India–US trade agreement. Weak global cues further dampened investor sentiment.

According to Vinod Nair, Head of Research at Geojit Investments, the US Federal Reserve’s interest rate decision expected on Wednesday night, along with an official update on the India–US trade agreement, will likely determine the market's direction in the coming days.

Brokerage firm Kotak Securities expressed optimism about long-term prospects, projecting that the Nifty could rise to 29,120 by the end of next year. CEO Sripal Shah noted that corporate earnings growth estimated to improve by up to 17 percent will be a key driver of this upward trajectory. He dismissed concerns about bubble-like conditions in Indian equities and indicated that FPIs might also return as buyers next year.