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Below the Quote on Markets 10th December 2025 by Mr. Vikram Kasat, Head Advisory, PL Capital

"Markets Extend Losses for Third Day; Midcap Segment Sees Steep Decline Ahead of Fed Policy Decision

Indian stock markets continued to slide for a third consecutive session on Wednesday, as investors remained cautious ahead of the U.S. Federal Reserve’s policy announcement. Initial gains in benchmark indices were erased by persistent selling, particularly in financials, retail stocks, and broader market segments.

The Nifty 50 closed 82 points lower at 25,758, slipping below the psychological 25,800 mark, while the Sensex declined by 275 points to end at 84,391. Market breadth remained negative, with more stocks declining than advancing on the NSE, reflected in an advance-decline ratio of 2:3.

Losses were more pronounced in midcap stocks, with the Nifty Midcap index falling by 668 points to settle at 59,007, extending the weakness seen on Tuesday. Financial sector pressure also contributed to the decline, as the Nifty Bank index dropped 262 points to 58,960, amid subdued risk appetite ahead of the FOMC’s interest rate decision.

Midcap counters saw steep corrections, with companies such as Kaynes Technology, Dixon Technologies, Amber Enterprises, and PG Electroplast shedding up to 10%. IT midcaps, including Persistent Systems, also faced selling pressure, with the stock down 4% as traders adjusted positions ahead of the U.S. Fed outcome.

In contrast, metal stocks outperformed, benefiting from firm commodity prices. Shares of Vedanta and Hindalco posted nearly 1% gains, while Hindustan Zinc rallied over 4%, supported by a rise in silver prices, which reached a record high. Going ahead market participants will monitor global sentiment closely after the Fed commentary, along with early Asian cues for tomorrow."

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