December 16, 2025: Markets End Sharply Lower; Nifty 50 Closes Near Day’s Low Amid Heavy Selling in Banks and Financials

Indian equity markets ended Tuesday’s session, December 16, 2025 on a decisively weak note, with benchmark indices closing near the day’s lows. Sustained selling pressure in banking, financial services and heavyweight stocks weighed heavily on sentiment, pulling the Nifty 50 well below the 25,900 mark, even as a few stocks delivered sharp, momentum-driven gains.

Also Read: December 16, 2025 (mid-cap): Markets Extend Further Losses; Nifty 50 Slides Below 25,900 Amid Broad-Based Strong Selling

Benchmark Indices at Close

As of 3:30 PM IST, the Nifty 50 settled at 25,860.10, down 167.20 points (-0.64%). The index opened at 25,951.50, touched an intraday high of 25,980.75, and slipped to a low of 25,834.35, indicating persistent selling throughout the session.

Other key indices also ended firmly in the red:

• Nifty Next 50: 68,337.20 (↓ 0.42%)

• Nifty Financial Services: 27,385.55 (↓ 0.79%)

• Nifty Bank: 59,034.60 (↓ 0.72%)

The sharp decline in banking and financial stocks remained the primary drag on the broader market.

Top Gainers: Sharp Rebounds and Momentum Plays

Despite the weak broader market, a handful of stocks posted strong gains, largely driven by momentum and stock-specific triggers:

• Patanjali Engineering RE (PATELEG-RE) surged 40.00% to ₹1.89, rebounding sharply on heavy volumes.

• AMNS Power & Steel (AMNPLST) jumped 20.00% to ₹209.49.

• Asahi Songwon (ASAHISONG) rose 20.00% to ₹311.75.

• Agritech gained 17.11% to ₹170.00, extending its recent uptrend.

• EPACK Durable (EPACK) advanced 14.06% to ₹296.10, witnessing strong trading activity.

These gains underline continued selective risk-taking in momentum-driven names, even amid a weak index backdrop.

Top Losers: Selling Pressure in Select Counters

On the downside, several stocks saw notable corrections, reflecting profit booking and cautious sentiment:

• Salona Cotspin (SALONA) fell 10.52% to ₹272.10.

• Arvee Laboratories (ARVEE) declined 9.70% to ₹179.40.

• VIP Clothing (VIPULLTD) slipped 8.56% to ₹10.90.

• Ola Electric (OLAELEC) dropped 8.51% to ₹34.20, despite very high volumes.

• Kridhan Infra (KRIDHANINF) eased 6.64% to ₹4.22.

The selling remained stock-specific, though the overall tone stayed cautious.

Market Outlook

Market sentiment continues to remain risk-averse as indices correct from record highs amid elevated valuations and sectoral pressure, particularly in financials. Analysts expect near-term volatility and consolidation, with markets likely to remain sensitive to global cues, interest-rate expectations and upcoming macroeconomic data.

While headline indices weakened, sharp divergence in individual stocks suggests opportunities for active traders, even as long-term investors may prefer a cautious, selective approach.

Conclusion: December 16, 2025

The trading session concluded with broad-based weakness across Indian equities, led by banks and financial services, dragging the Nifty 50 to close near the day’s low. However, sharp rallies in select stocks highlighted ongoing divergence beneath the surface. As volatility persists, investors are expected to remain selective, balancing risk while closely tracking sectoral trends and broader economic signals.