Sensex Crashes 610 Points, Nifty Slips Below 26,000 As Rupee Hits Record Lows – India Stock Market Close Today (8 December 2025)

Mumbai | 8 December 2025, After the Closing Bell

Indian equities ended sharply lower on Monday as a cocktail of global jitters, a sliding rupee and persistent foreign selling knocked the Sensex and Nifty off recent highs. The sell-off was broad-based, with all major sectoral indices closing in the red and mid- and small-caps taking the heaviest hit.  ^[1]

Key Highlights from Dalal Street Today

• Sensex closed at 85,102.69, down 609.68 points (‑0.71%); Nifty 50 settled at 25,960.55, down about 226 points (‑0.86%), its lowest close in nine sessions and the worst one-day fall for both indices since late September.  ^[2]
• Nifty briefly slipped to an intraday low of 25,892.25 (‑1.12%), while the Sensex hit 84,875.59, down 837 points at the day’s bottom.  ^[3]
• Mid- and small-caps were hit harder: BSE Midcap fell about 1.7%, BSE Smallcap around 2.2%, and the Nifty Midcap 100 and Smallcap 100 lost 1.83% and 2.61%, respectively.  ^[4]
• All 16 major sectoral indices ended lower; realty, PSU banks, media and defence bore the brunt, while IT names fell the least.  ^[5]
• Only three Nifty 50 stocks closed in the green – all from IT: Tech Mahindra, Wipro and HCL Technologies. IndiGo, Bharat Electronics and JSW Steel led the losers.  ^[6]
• Investors lost over ₹7 lakh crore in market capitalisation in a single session as BSE-listed companies’ combined value fell to roughly ₹463–464 lakh crore from about ₹471 lakh crore on Friday.  ^[7]
• Selling was driven by rupee weakness near record lows, relentless FII outflows, caution ahead of the US Fed’s December 10 rate decision, uncertainty around an India–US trade deal and a spike in Japanese bond yieldsthat rattled global risk sentiment.  ^[8]
• India VIX, the volatility gauge, jumped about 8% to around 11.1, signalling rising nervousness.  ^[9]

Headline Numbers: Sensex, Nifty and Broader Market

After two days of gains powered by the Reserve Bank of India’s 25-basis-point repo rate cut on Friday, the rally abruptly reversed.  ^[10]

• Sensex:
  • Close: 85,102.69 (‑0.71%)
  • Intraday low: 84,875.59 (‑837 points)  ^[11]
• Nifty 50:
  • Close: 25,960.55 (‑0.86%, ~226 points)
  • Intraday low: 25,892.25 (‑1.12%)  ^[12]

Broader indices underperformed: BSE Midcap and Smallcap fell 1.7% and 2.2%, their weakest close in months, while the Nifty Next 50 slipped around 2%.  ^[13]

Market breadth was deeply negative: well over 3,300 stocks declined versus fewer than 1,000 gainers on the BSE, underscoring how widespread the pain was beyond headline indices.  ^[14]

Why Did the Indian Stock Market Fall Today?

Multiple domestic and global factors converged to trigger what Reuters described as the worst session for Indian shares in over two months.  ^[15]

1. Rupee Weakness and Currency Jitters

The Indian rupee once again slipped beyond the 90-per-dollar mark, hovering near record lows around 90.07–90.15 in recent sessions.  ^[16]

• The rupee hit an all-time low of 90.46 on 4 December, despite India’s robust macro data – Q2 FY26 GDP growth at 8.2% and retail inflation near 0.25%.  ^[17]
• A persistently weak rupee raises concerns over imported inflation, corporate margins for companies with foreign-currency liabilities and the attractiveness of India for foreign portfolio flows.

Market commentators highlighted that the ongoing depreciation of the rupee has been a key driver of foreign institutional investors (FII/FPI) selling Indian equities, even though valuations look more reasonable in large caps after recent corrections.  ^[18]

2. Relentless FII Outflows

Foreign investors have been in sell mode since July:

• Mint estimates FPIs have net sold over ₹1.60 lakh crore in Indian equities since July, including more than ₹10,000 crore in just the first five sessions of December.  ^[19]
• Financial Express pegged December’s equity outflows at roughly ₹8,347 crore, with domestic institutions stepping in as net buyers to the tune of nearly ₹19,800 crore.  ^[20]
• Reuters put December FII selling so far at over $1 billion, taking year‑to‑date net outflows close to $18 billion.  ^[21]

Despite strong domestic inflows from mutual funds and retail investors, this foreign exodus is weighing on benchmarks and especially on riskier pockets like mid- and small-caps.

3. Caution Ahead of the US Fed’s Rate Decision

Markets globally are bracing for the US Federal Reserve’s policy decision on 10 December. Expectations are high for a 25-basis-point rate cut, but commentary may skew more hawkish than hoped.  ^[22]

• Reuters noted that CME FedWatch now implies nearly 87% odds of a cut, yet strategists fear a fractious meetingand guidance that hints at a slower easing cycle in 2026.  ^[23]
• A softer or delayed easing path could keep the dollar strong, pressuring emerging market currencies like the rupee and adding to equity volatility.  ^[24]

With this “Fed week” overhang, traders chose to lighten risk and book profits after Friday’s RBI-driven rally instead of carrying aggressive positions into a binary global event.  ^[25]

4. India–US Trade Deal Uncertainty and Tariff Risks

Hopes of an India–US trade deal have been supporting sentiment in recent months, but timelines and contours remain uncertain:

• Mint points to lingering uncertainty around when and how a potential deal will be finalised, even as both governments signal progress.  ^[26]
• Reuters highlighted investor worries over a 50% US tariff on some Indian exports, partly tied to India’s continued purchases of Russian crude, and how this overhang could cap export growth.  ^[27]

This trade uncertainty, layered on top of currency weakness and FII selling, added another reason for investors to take risk off the table.  ^[28]

5. Japanese Bond Yields and Yen Carry Trade Fears

A less obvious but important factor: Japanese government bond yields spiked to multi-year highs, fuelling fears of an unwinding of the popular yen carry trade.  ^[29]

• Higher Japanese yields reduce the incentive to borrow cheaply in yen and invest in higher-yielding emerging-market assets, including Indian equities.
• Analysts warned that any large-scale reversal of yen carry trades would be a negative shock for EM risk assets, explaining some of Monday’s broad-based selling.  ^[30]

Adding to nerves, a powerful 7.6-magnitude earthquake in northeast Japan pushed the yen weaker and US yields higher, reinforcing the sense of global macro fragility.  ^[31]

6. RBI Rate Cut Digestion and Transmission Worries

On Friday, the RBI surprised markets with a 25-basis-point repo rate cut, sparking a sharp rally in rate-sensitive financials and autos.  ^[32]

Two trading days later, investors are reassessing:

• Reuters quoted JP Morgan as saying Friday’s cut could be the last in this cycle, with inflation expected to move back towards 4% while growth remains robust.  ^[33]
• Bank executives cited by Economic Times and others argued that elevated credit–deposit ratios and deposit competition may limit how quickly banks can pass on lower policy rates, tempering the growth boost that markets had initially priced in.  ^[34]

The result: optimism from the policy easing quickly morphed into profit‑booking, especially in segments that had run up sharply in anticipation of lower rates.  ^[35]

Sector Check: Realty, PSU Banks, Media & Defence Lead the Fall

The sell-off was broad-based, with all major indices slipping into the red:  ^[36]

• Nifty Realty: ≈ ‑3.5%, the worst-performing sector as high-beta property names bore the brunt of risk-off trades and rate-transmission doubts.
• PSU Banks: around ‑2.8% as investors fretted about margin pressure, rising funding costs and sensitivity to currency and bond market volatility.
• Media & Telecom: Media index down roughly 2.7%, while telecom-linked names also slid on heavy volumes.
• Metals & Capital Goods: Metal indices declined about 1.9%, despite record-high copper prices that normally support miners, as traders booked profits amid global risk aversion.  ^[37]
• Financials: Nifty Bank dropped about 0.9%, and the broader Financial Services index fell around 0.7%, tracking weakness in frontline lenders and NBFCs.  ^[38]
• IT: The only relatively “safe” pocket – Nifty IT slipped just ~0.3%, and three IT heavyweights were the day’s only Nifty gainers.  ^[39]

Stock Movers: IndiGo Crashes, SpiceJet Soars, IT Defends

Nifty 50: Only Three Gainers

According to multiple closing reports, only three of the 50 Nifty constituents ended higher – all IT names:  ^[40]

• Tech Mahindra: up about 1.2–1.3%
• Wipro: up roughly 0.3–0.6%
• HCL Technologies: marginally higher (≈ 0.1–0.3%)

This underscores the defensive rotation toward export-driven IT stocks when the rupee is weak and domestic cyclicals are under pressure.

Top Nifty Losers

At the other end:  ^[41]

• InterGlobe Aviation (IndiGo): ‑8% to ‑8.6% – the day’s biggest Nifty loser, as the airline continues to reel from a severe operational crisis with thousands of flight cancellations and a DGCA show‑cause notice hanging over it.
• Bharat Electronics (BEL): about ‑5%, extending the corrective phase in defence names after a strong multi-quarter run.
• JSW Steel: down roughly 3.7%, tracking global metal jitters despite bullish longer-term copper and steel narratives.
• Other notable laggards included Nestlé India, Shriram Finance, Eternal, Jio Financial Services, Trent, Adani Enterprises, Tata Steel, Bajaj Finance, Bajaj Finserv, SBI and Power Grid, many of which saw broad-based selling rather than stock-specific news.

Aviation Divergence: SpiceJet vs IndiGo

The aviation space told a tale of two airlines:  ^[42]

• SpiceJet surged about 14% today and has climbed roughly 17% over the last two sessions.
  • The rally comes as the carrier signals expansion plans, including doubling its fleet by end‑2025 and bringing back grounded Boeing aircraft by April 2026.
• IndiGo, by contrast, is under intense regulatory and investor scrutiny after widespread flight disruptions; global brokerages have already trimmed earnings estimates, and stocks are pricing in a prolonged reputational and operational hit.  ^[43]

Despite today’s spike, SpiceJet remains deep in the red over a six‑month and one‑year horizon, highlighting how volatile and cyclical the airline space remains.  ^[44]

High-Volume Trades and Outliers

On the NSE:  ^[45]

• Vodafone Idea topped the volume charts with nearly 85 crore shares changing hands, followed by Filatex Fashions and Suzlon Energy.
• Over on the BSE, 13 stocks rose more than 10%, including names like Kesoram Industries, Latent View Analytics, Rolex Rings and Dredging Corporation of India – suggesting stock-specific stories can still buck macro headwinds.  ^[46]

At the same time, more than 500 stocks hit fresh 52‑week lows, underlining how painful the correction has been beneath the headline indices.  ^[47]

Mid- & Small-Cap Pain: Volatility Spikes

Broader indices again underperformed large caps, and Monday’s drop dragged them back to multi‑month lows:  ^[48]

• BSE Midcap: ‑1.7%, lowest close since early October.
• BSE Smallcap: ‑2.2%, weakest since mid‑May.
• Nifty Next 50: about ‑2%.
• India VIX jumped around 8% to ~11.1, signalling a pick‑up in fear and hedging activity.  ^[49]

Analysts at Financial Express and other brokerages noted that risk appetite in mid- and small-caps has been contracting, with traders now more sensitive to valuations, FII flows and year-end portfolio positioning.  ^[50]

Rupee, Rates and Asia FX: How Global Strategists See India

Beyond today’s price action, global currency strategists are turning more cautious on the Indian rupee (INR) in the medium term:

• A fresh Asia FX Outlook 2026 report from MUFG Research flags INR among the currencies they are “most negative” on, citing concerns over macro stability (including the current account) and fiscal clarity.  ^[51]
• The same report argues that Asia’s rate-cut cycle is nearing its end, particularly for India and Vietnam, where growth is above trend and output gaps are nearly closed.  ^[52]

This dovetails with domestic worries that RBI may be nearing the end of its easing cycle, even as the rupee weakens and FIIs remain net sellers – a less-than-ideal combination for equity valuations.  ^[53]

Global Backdrop: Fed Week, Japan Quake and US Yields

Global markets were already in a cautious mood before India opened:  ^[54]

• Asian stocks traded mixed, with the Hang Seng underperforming and Japan’s Nikkei largely flat.
• A 7.6-magnitude earthquake in Japan’s northeast added another layer of uncertainty, nudging US Treasury yields and the dollar higher against the yen.  ^[55]
• Wall Street indices were slightly lower as investors braced for the Fed outcome and considered the possibility of a shallower rate-cut path.  ^[56]

This global risk-off environment meant that India’s correction was not happening in isolation; rather, it was part of a broader recalibration of risk during a high-stakes macro week.

Technical View: Nifty & Sensex Outlook for 9 December and Beyond

Technical analysts expect near-term volatility and consolidation, but not necessarily the end of the broader bull market.

Nifty 50: Key Levels to Watch

ET Now’s post-close technical roundup highlights several important signals:  ^[57]

• Chart pattern: Nifty has formed a long bear candle on the daily chart and closed below the 21‑day moving average for the first time in weeks – a sign of weakening short-term momentum.
• Immediate support:
  • First band around 25,850–25,800.
  • A decisive break below 25,800 opens room for a slide towards 25,730 initially and then the 25,500–25,650zone.
  • Several analysts also flag 25,700–25,722 (near the 50‑day exponential MA) as a “line in the sand” – below this, selling could accelerate.
• Resistance:
  • Psychological and technical resistance in the 26,000–26,100 band.
  • Stronger resistance around 26,200–26,325, an area where the index has repeatedly faced intraday rejection in recent sessions.

Most experts cited in the ET Now report expect Nifty to oscillate in the 25,800–26,200 band in the near term, with any rebound towards 26,300 likely attracting fresh profit‑booking unless macro cues turn decisively positive.  ^[58]

Sensex

While fewer explicit levels were shared for the Sensex, the index’s 0.7% drop and test of sub‑85,000 intraday mirrors Nifty’s corrective structure. Analysts broadly expect correlated moves, with the previous high near 85,700–86,000acting as overhead resistance and recent lows below 85,000 serving as the next reference support zone for traders. (This mapping is inferred from the Nifty levels and should be treated as indicative, not formal guidance.)  ^[59]

What Should Investors Watch the Rest of This Week?

Market commentators and strategists point to several signposts that could shape Indian equities in coming sessions:  ^[60]

1. US Fed Outcome (10 December)
   • Magnitude of the rate cut (if any) and, more importantly, the guidance on the pace of easing in 2026.
   • Any hint that this week’s cut could be followed by a pause may keep global yields elevated and EM risk assets under pressure.
2. Rupee Trajectory
   • Whether INR stabilises around the 90 mark or continues to weaken will be crucial for FII flows and imported inflation expectations.
3. FII/FPI Flow Data
   • Daily FPI statistics will be watched for signs of capitulation or stabilisation after months of relentless selling.
4. India–US Trade Headlines
   • Any concrete timeline or framework for a trade deal – or fresh tariff headlines – could swing sentiment quickly, especially in export‑oriented sectors.
5. IndiGo Crisis & Aviation Sector
   • Updates on DGCA’s show‑cause notice, flight schedule normalisation, and broker commentary will influence both IndiGo and SpiceJet, as well as broader sentiment towards high-beta travel stocks.  ^[61]
6. Mid- & Small-Cap Valuations
   • With many broader-market names correcting sharply and over 500 stocks hitting 52‑week lows, investors and analysts will be re‑evaluating where earnings visibility and balance sheets justify fresh buying – versus where caution is still warranted.  ^[62]

Bottom Line

Today’s session on Dalal Street was a classic “risk‑off” day:

• A weak rupee, heavy foreign selling, global rate and trade worries and an airline‑sector crisis combined to push the Sensex down about 610 points and Nifty below the 26,000 mark.  ^[63]
• The damage was deeper in mid- and small-caps, and breadth was overwhelmingly negative, signalling that the correction is extending beyond a handful of headline names.  ^[64]
• Yet, macro fundamentals – including strong GDP growth and low inflation – remain supportive, and many strategists still see the broader uptrend intact as long as key technical supports hold on the Nifty.  ^[65]

For now, markets are likely to remain volatile and headline‑driven until the Fed decision, rupee moves and foreign flow trends offer clearer direction.

Disclaimer: This article is an informational summary of publicly available market data, news reports and analyst commentary as of 8 December 2025. It is not investment advice or a recommendation to buy or sell any security. Please consult a registered financial adviser before making investment decisions.

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