Ahead of the US Fed’s decision on Wednesday, investor sentiment was further eroded by the ongoing pullout of foreign funds.
Today, Tuesday, Indian equities took a sharp downfall as selling pressure intensified across the board. The Sensex dropped down 436.41 points or 0.51 percent at 84,666.28.
The Nifty followed a similar path sliding down 120.89 points or 0.47 percent at 25,839.65.
Today again Market sentiments remained bit negative as about 1988 shares advanced, 1127 shares declined, and 94 shares unchanged.
NIFTY 50 Market Map
On Monday, The Sensex fell 609.68 points, or 0.71 percent, to reach 85,102.69. It fell 836.78 points, or 0.97 percent, during the day to reach the intraday low of 84,875.59.
The Nifty fell 225.90 points, or 0.86 percent, to close at 25,960.55, ending a two-day winning streak.
As investors booked profits across small and midcap equities, the stock benchmark indices fell as much as 1% intraday on Monday. Index heavyweights also saw sharp selling.
During the intraday sessions, It fell 1.12 percent, or 294.2 points, to a low of 25,892.25. Sector-wise, every index finished lower, with the biggest drops being in real estate, metal, and energy sector. Even more severely impacted was the overall market, as the midcap index slide by about 2%, while the smallcap index slide by almost 2.6%.
Tech Mahindra, HCL Technologies, Reliance Industries, and HDFC Bank are the top gainers.
Bharat Electronics Ltd., Eternal, Trent, Tata Steel, Bajaj Finance, Adani Ports, Bajaj Finserv, State Bank of India, PowerGrid, Asian Paints, Tata Motors Passenger Vehicles, Titan, NTPC, Kotak Mahindra Bank, Larsen & Toubro, and Bharti Airtel were among the top losers.
Market sentiments remained negative as about 919 shares advanced, 3190 shares declined and 172 shares unchanged.
Key factors behind market fall :
Tricky uncertainty ahead of US Fed meet:
The investors stayed on the sidelines ahead of the Fed’s two-day meeting beginning December 9.The Fed is widely expected to deliver its third straight quarter-point 25 bps rate cut due to negative employment growth that remains too low to keep up with labour supply growth and a rising unemployment rate.
Additionally, “other measures of labour market tightness have weakened more on average, and some alternative data measures of layoffs have begun to rise recently, presenting a new and potentially more serious downside risk.”
Asian markets opened mildly weak today morning with Nikkei down 0.10% and Kospi lower by 0.27%, reflecting a cautious undertone ahead of central bank decisions.
GIFT Nifty opened near 26,331, indicating a steady but guarded start for Indian markets. For India, the Fed outcome remains critical for rupee movement and FII flows. While the currency remains under pressure in the In the near term, India’s macro strength continues to stand out, supported by the RBI’s recent rate cut and improving domestic liquidity conditions.
Continues FII outflows
On Friday, foreign institutional investors continued their selling trend by selling stocks valued at Rs 438.90 crore, marking the sixth consecutive session of net outflows.
Chief Investment Strategist V K Vijayakumar of Geojit Investments Limited claims that FIIs have been compelled to consistently sell Indian stocks due to the ongoing depreciation of the rupee, which has maintained pressure on benchmark indices. Another new global concern that he identified was the recent increase in Japanese bond yields.
A significant increase in yields might cause the yen carry trade to unravel once more, which might hasten outflows from developing nations like India.
“In summary, there is potential for high volatility in the near term.”
Volume selling of small and mid-cap stocks
As investors booked heavy profits on Monday, the small- and mid-cap shares faced heavy selling pressure, which caused several equities to decline. During intraday trading, the Nifty Smallcap100 index fell sharply more than 2% for the fifth consecutive session.
Over the previous five sessions, the index fell sharply by more than 4%. Additionally, the Nifty Midcap 100 index fell by almost 2%. Profit booking causes small and midcap shares down as much as 7%; the biggest losers are Mazgaon Dock, GMR, BDL, and Godrej Properties.
Crude Oil Upswing
Brent Oil Futures expiring in February slipped 1.2% to $63.02 per barrel and West Texas Intermediate (WTI) crude futures dropped 1.2% to $59.37 per barrel, still close to the highest level in more than two weeks.
Volatile crude prices supported by geopolitical uncertainty and expectations of a US interest rate cut tend to pressure India’s import bill and fuel inflation concerns, often prompting cautious sentiment in the securities market.
Declining rupee Vs Dollar
The rupee weakened 16 paise to 90.11 against the US dollar in early trade on Monday, led by high crude oil prices and ongoing foreign fund outflows. The local currency opened at 90.07 before easing further on weak rupees and strong dollar demand from corporates, importers and foreign portfolio investors, forex dealers said.
India The Volatility Index (Vix) rise
As on 08 Dec 2025, the INDIA VIX is trading at ₹10.73, up by 4.00% from the previous close of ₹10.32. The index opened at ₹10.32 touched an intraday high of ₹11.02 and a low of ₹10.14. Over the past 52 weeks, it has moved between a low of ₹9.40 and a high of ₹23.19.
A higher VIX indicates increased market uncertainty, which typically leads traders to reduce risk exposure.
Nifty’s FUT technical outlook
Nifty is anticipated to start the day on a flat note and trade in a range-bound manner.
• Technically speaking, the Nifty has immediate support at 26200. Further declines towards 26100-25980 are anticipated if Nifty closes below that level.
• Conversely, 26420–26500 will function as robust resistance levels.
Bank FUT Nifty Technical outlook
• The Bank Nifty is anticipated to start the day on a flat note and move in a range-bound manner.
• On the downside, Bank Nifty’s next immediate support is around 59700 levels; on a clear closing below, anticipate a decline to 59350–59140.
• At the 60260–60470 levels, there is instant resistance.
Disclaimer: This story is for educational awareness purposes only. Bharatnewsupdates advises readers to consult with certified investment advisor before making any investment decisions.
