Sensex tanks 800 pts, Nifty breaches 26k: What’s dragging the markets down?

Market volatility remains high with key support and resistance levels in focus

December 8, 2025

Fed meeting fears trigger sharp fall in Sensex, Nifty

Indian markets drop on rupee weakness, FII selling and rising crude

Indian equity benchmark indices Sensex and Nifty fell sharply on Monday, December 8, 2025, ending their two-day winning run that was fuelled by optimism over the Reserve Bank of India’s 25 basis points repo rate cut. The downturn came as investors turned cautious ahead of the US Federal Reserve’s interest rate decision scheduled for Wednesday, December 10.

The BSE Sensex slumped 803 points intraday, hitting a low of 84,909, while the NSE Nifty50 slipped below the 26,000 mark, touching 25,902.95, down 283.5 points from its previous close of 26,186.45.

At 1:40 PM, the Sensex was trading at 84,921.44, lower by 790.93 points (0.92%). The Nifty50 was at 25,915.95, down 270.50 points (1.03%).

A majority of Sensex stocks—28 out of 30—were in the red, including BEL, Eternal, Bajaj Finance, Trent, Bajaj Finserv, Adani Ports, Power Grid, Tata Motors PV, Tata Steel, SBI, NTPC and Asian Paints, with losses of up to 5%.

Broader markets were also under pressure, with the NSE MidCap 100 down 2.1% and the Nifty SmallCap 100 sliding 2.775%. All sectoral indices traded lower. Nifty Realty was the biggest laggard, falling nearly 4%, followed by PSU Bank, Media, Metal, Auto, Financial Services, FMCG, Consumer Durables, Oil & Gas and Chemicals.

Ponmudi R, CEO of Enrich Money, said mixed global signals, a weak rupee and persistent FII selling were weighing on sentiment. He noted that although the RBI’s rate cut supported medium-term growth outlook, traders remained defensive until clearer cues emerged.

Key reasons behind the Sensex, Nifty decline

Caution ahead of US Fed meeting
Markets turned defensive before the Fed’s FOMC meeting on December 9, with investors awaiting inflation data and global central bank signals.
Rupee depreciation
The rupee fell to 90.38 amid high crude prices and foreign outflows. Delays in the India–US trade deal and rising metal prices also hurt sentiment.
Continued FII selling
FIIs remained net sellers for the seventh straight session, pulling out ₹438.90 crore.
Higher crude oil prices
Brent crude hovered near a two-week high at $63.83, supported by Fed rate cut expectations and geopolitical risks.
Increased volatility
Markets stayed choppy due to mixed cues — a weak rupee, persistent FII selling and rising Japanese bond yields.
Technical pressure
A break below 26,000 could extend declines toward 25,900–25,850. Options data indicates strong support at 26,000 and resistance at 26,200–26,300.

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