Stock Market Today: Sensex Drops 400+ Points, ₹2 Lakh Crore Lost In 30 Minutes!
Tuesday morning was a nightmare for Indian investors! The Sensex nosedived more than 400 points and finally settled at the lowest point of the day, 84,795, while the Nifty 50 fell below the 26,000 mark and reached 25,901. Right, you read it right, 26,000 didn’t last!
Midcap and smallcap stocks were also affected, with both indices dipping more than 0.5%. Just in the first 30 minutes of the trading session, around ₹2 lakh crore disappeared from the market, causing the total market capitalization of BSE to shrink from ₹471 lakh crore to ₹469 lakh crore. It’s a rude shock for those who are waiting for an easy December.
The market has been very volatile throughout the month. With the Sensex and Nifty already down about 1% for the month, investors are starting to ask: is the three-month winning streak over or is it just a bumpy road ahead?
Are traders in a panic mode or just being cautious? Keep on watching the screens, because if the morning is any indication, this day could turn out to be one where every second matters.
Why Is The Stock Market Down Today?
1- Downfall Of Rupee- Indin Rupee Hits Fresh Low
The downfall of the rupee is taking all the attention today! Indian currency has done a new low at around 91 against the US dollar, it opened at 90.79 on Tuesday and fell from Monday’s 90.73, this situation is quite dramatic and shocking to the market with every movement.
This year’s 6% depreciation, mainly attributed to the continuous Foreign Institutional Investor (FII) sell-off and a greater trade deficit, is severely affecting the overall investor mood.
The traders are very alert and are monitoring the market closely. The major question that everyone is asking is: Would the rupee’s decline continue to pull the stocks down, or is there going to be a surprising turnaround soon? Stay tuned to the screens!
2- Global Markets Drag Indian Stocks Lower
Global signals that are weak are causing Indian investors to be tense! The main Asian markets, such as Japan’s Nikkei, Korea’s Kospi, and Hong Kong’s Hang Seng, all saw declines of up to 2%, whereas Nasdaq went down by 0.61% the previous night, along with the wait for important US macroeconomic data, including the November jobs report. According to market experts, a fall in US tech stocks has resulted in a decline of global indexes as investors prepare for a fresh round of delayed economic data.
The caution is further exacerbated by the uncertainty regarding the policy decisions of the Bank of England and the Bank of Japan, which have kept traders on edge and have limited risk hunger universally. Indian markets are reflecting this global fear very closely, which is making the investors apprehensive.
3- Relentless Foreign Capital Outflow
- Foreign institutional investors (FIIs) have been aggressively selling Indian stocks since July.
- In December alone, FIIs have offloaded Indian equities worth over ₹21,000 crore in the cash segment.
- Since July, FIIs have sold Indian stocks totaling more than ₹1.70 lakh crore in the cash segment.
- This massive foreign capital outflow is a major reason the market has struggled to maintain a sustained bull trend this year.
To sum up, the main reasons for today’s market decline are the following three major factors: falling rupee, uncertain global signals, and constant selling of stocks by foreign investors. A lot of caution is being exercised by investors, which means they are not spending money, and every change in the prices is causing nervousness among traders. Is the storm going to blow over, or is this just the beginning of an adventure?
(With Inputs)
Also Read: Indian Rupee Slides Toward 91 as FPI Outflows And Trade…
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
Always bold with her opinions, she also never misses the chance to weave in expert voices, keeping things balanced and insightful. In short, Aishwarya brings a fresh, sharp, and fact-driven voice to every story she touches.
