Indian markets ended sharply lower on Monday as selling pressure intensified across the board.
The Sensex fell 610 points, while the Nifty slipped below the 26,000 mark, as investors booked profits in small- and mid-caps and extended selling to heavyweight stocks.
So, what’s driving the fall?
Here are the five key factors.
First, caution ahead of the US Federal Reserve’s policy decision on December 10. While a rate cut is expected, uncertainty around the outcome has pushed investors to reduce risk.
Second, persistent FII outflows continue to weigh on sentiment. Foreign investors have sold over ₹6,500 crore so far in December, pressuring equities despite strong domestic buying.
Third, the rupee hovering near record lows has rattled markets. A weaker currency raises import costs and inflation risks, adding stress to already fragile sentiment.
Fourth, uncertainty around the India–US trade deal remains. While talks are ongoing, lack of clarity is keeping investors cautious.
And finally, rising Japanese government bond yields are raising fears of a yen carry trade unwind, a move that could trigger fresh volatility across emerging markets, including India.
Bottom line: Global uncertainty, currency pressure and foreign fund selling are keeping markets on edge.
That’s all for this episode, see you in the next one.
