Indian stock markets, including the Sensex and Nifty, closed lower on Monday due to muted year-end trading volumes and foreign fund outflows. Analysts suggest a consolidation phase, with a preference for large-cap stocks amid global trade anxieties and a weakening rupee. Investors are awaiting Q3 earnings and clarity on U.S. trade agreements, with the market showing a bearish breadth and a weakened trend below the 21 EMA.