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Indian Markets Tumble on Profit-Taking, FII Outflows
8 Dec
Summary
- Equity indices Sensex and Nifty fell sharply on December 8, 2025.
- Investors booked profits amid significant foreign investor selling.
- Global monetary policy concerns and currency depreciation impacted sentiment.
Indian equity markets, represented by the Sensex and Nifty, experienced a sharp downturn on Monday, December 8, 2025. This decline followed two consecutive days of gains, as investors opted to book profits amidst substantial selling by foreign institutional investors. The market sentiment was further weakened by investor caution leading up to the U.S. Federal Reserve's policy announcement later in the week.
The 30-share BSE Sensex dropped by 609.68 points to close at 85,102.69, while the 50-share NSE Nifty declined by 225.90 points, settling at 25,960.55. The broad-based fall saw many prominent stocks among the Sensex constituents trading in the red, with only a handful managing to gain ground.
Analysts attributed the sell-off to a combination of factors, including persistent foreign investor outflows, concerns over global monetary policy, and currency depreciation. Volatility was exacerbated by rising Japanese bond yields, sparking fears of potential unwinding of the yen carry trade, despite positive domestic economic indicators.
