Indian equity markets on a sharp decline today
By Ankur Chandra | Updated at: Dec 8, 2025 05:00 PM IST
Indian equity markets are seeing sharp declines today. At 2:45 p.m. IST, 8th December, 2025, Nifty 50 is down by 261.25 points or 1%. Sensex is down by 708 points or 0.83%.
Some of the decline today is because of profit booking after the gains of Friday. Indian markets gained on Friday after RBI cut down interest rate by 25 basis points. The short term profit booking today indicates that investors remain cautious, given the prevailing economic uncertainties.
Rupee depreciation contributing to concerns
The continued depreciation of rupee against the dollar is generally not favorable for the Indian economy. It may provide some relief to exporters battling higher US tariffs. Exports become cheaper and more competitive when the currency depreciates against foreign currencies. But India’s imports become more expensive because of rupee’s depreciation. India relies on imports for meeting around 80% of its energy needs. Indian companies- from consumer electronics to auto makers – use a number of imported components in their final products. The costs of these imports go up with depreciated rupee. Many of these companies will pass on higher costs due to depreciated rupee to customers by increasing prices. Inflation rate is likely to go up if the depreciation in rupee does not stop.
Anxiety regarding Indo – US trade deal
If an Indo-US trade deal does not happen soon, then the rupee is likely to depreciate further. In the face of higher US tariffs, India’s trade deficit will go up further. This will increase the downward pressure on Indian rupee.
The recent visit of Russian President Vladimir Putin to India may raise some anxiety regarding an Indo-US trade deal. India looking to get closer to Russia may rattle US. But Indian External Affairs Minister S. Jaishankar has expressed optimism regarding an Indo-US trade deal happening soon. A US trade delegation is visiting India between 10th December and 12th December. This delegation will further take up talks on the ongoing bilateral trade deal negotiation.
US Federal Reserve monetary policy announcement tomorrow
US Federal Reserve will announce its interest rate decision tomorrow, 9th December. The expectation is that it will cut down interest rate by 25 basis points. But markets still remain cautious. If the Federal Reserve surprises by not going for an interest rate cut, then it will rattle US and global markets. Many investors, including many FIIs, are selling today before Federal Reserve’s interest rate decision comes tomorrow.
Top gainers & losers
Top 3 gainers at Nifty 50 at this time are Tech Mahindra, HDFC Life and Wipro. Just 3 of the 50 stocks that make up Nifty 50 are gaining at this time. Top 3 losers at this time are Indigo, BEL and JSW Steel.
Volatility shoots up
All the broad market indices are in red at this time. Volatility has jumped sharply. India VIX index is up by 10.03%. All the sectoral indices are in red at this time. Nifty Realty index is down by 3.82%. Nifty Media index is down by 2.86%. Nifty PSU bank index is down by 3%.
Market breadth is extremely negative
Market breadth is extremely negative at this time. At NSE, 516 stocks are gaining. 2617 stocks are declining. This is an advance-to-decline ratio of just 0.19:1. A whopping 409 stocks have touched 52-week low at NSE by this time. Just 40 stocks have touched 52-week high at NSE by this time today.
Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.
Source: NSE
