Indian shares started the week on a listless note and extended their losing streak, dragged by losses in Reliance Industries and as thin participation and persistent foreign outflows kept risk appetite in check. The Nifty 50 index fell 0.38% to 25,942.10, while the BSE Sensex index shed 0.41% to 84,695.54. The Nifty has lost 0.9% in three sessions while the Sensex dropped 1% in four sessions. The daily trading volume of Nifty 50 stocks slipped to 250 million shares in December from 300 million in the previous month, indicating a lower volume of trade. Fourteen of the 16 major sectors declined. The small-caps and mid-caps fell 0.7% and 0.5%, respectively. IT index fell 0.8%. Energy shares dropped 0.5%, dragged by a 0.9% drop in Reliance Industries. India is seeking more than $30 billion in compensation from Reliance and BP in an arbitration case over alleged underproduction from a gas field, Reuters reported. Among stocks Hikal fell 2.6% after the pharmaceuticals and crop protection company revealed discrepancies in revenue reporting due to some employees’ misconduct. Timex Group India slid 5.3% after its top shareholder announced an offer-for-sale for up to 4.47% stake at a 22% discount to the last close. OUTFLOWS AND THIN TRADE Foreign portfolio investors continued to sell Indian equities, offloading shares worth a record $18.03 billion so far in 2025. “Sustained foreign outflows and thinner year-end trading volumes have led to some profit-taking, but this is a healthy consolidation rather than a cause for concern,” said Raghvendra Nath, managing director at Ladderup Asset Managers. “Clear evidence of a recovery in corporate profitability in the upcoming earnings season, along with progress on a favourable India–U.S. trade deal, would be the near-term catalysts for the next leg of the market’s upmove.”