Indian Stock Market Falls Sharply as Global Worries Weigh on Sentiment

By siliconindia  |  Tuesday, 09 December 2025, 10:03:57 AM IST

Indian Stock Market Falls Sharply as Global Worries Weigh on Sentiment
  • Sensex falls 610 points and Nifty dips below 26,000 amid weak global cues and selling pressure.
  • Fed policy uncertainty, FII outflows, weak rupee, and rising Japanese bond yields shake investor confidence.
  • IndiGo, Siemens, L&T, ICICI Bank, Torrent Power, M&M, and Welspun Corp see action on major announcements.
The Indian stock market witnessed a sharp fall on Monday, December 8, as investors cut down their exposure across sectors due to mixed global signals and rising uncertainty around global monetary policies. Weak sentiment in global markets, concerns over the US Federal Reserve's next move, and foreign fund outflows led to heavy selling pressure.
The Sensex slipped by 610 points or 0.71 percent to close at 85,102.69, while the Nifty 50 dropped 226 points or 0.86 percent to finish at 25,960.55. Both benchmark indices fell below key psychological levels, reflecting cautious investor mood. The selling pressure was broad-based, with mid-cap and small-cap stocks being hit harder. The BSE Midcap index declined by 1.73 percent, while the Smallcap index dropped 2.20 percent, indicating risk aversion among investors.
Commenting on the market movement, Vinod Nair, Head of Research at Geojit Investments Limited, said investors have turned cautious ahead of the US Federal Reserve’s policy announcement this week. He added that despite strong economic growth in India and the recent interest rate cut by the Reserve Bank of India, the market remains uneasy due to global concerns, continued outflows of foreign institutional investors (FIIs), and the weakening rupee. He also pointed out that rising Japanese bond yields have raised fears of an unwinding of the yen carry trade, further increasing volatility in global markets.
Stocks to Watch
Several companies remained in focus due to key developments:
IndiGo: The airline announced that its operations are now fully back to normal after last week’s disruption. Meanwhile, a DGCA committee probing the issue is likely to call its CEO Pieter Elbers and COO Isidre Porqueras for questioning on December 10.
Siemens: The company’s board has approved the sale of its Low Voltage Motors and Geared Motors divisions to Innomotics India. The deal is valued at Rs 2,200 crore and will be executed on a cash-free, debt-free basis.
Larsen & Toubro: L&T’s board approved the transfer of its real estate business to its subsidiary L&T Realty through a slump sale under a Scheme of Arrangement, subject to regulatory approvals.
ICICI Bank: The bank signed an agreement with Prudential Corporation Holdings to acquire a 2 percent stake in ICICI Prudential AMC for Rs 2,140 crore.
Bajaj Finserv: The company released provisional performance numbers of its insurance arms for November and year-to-date figures, showing business momentum in the insurance segment.
Torrent Power: The firm signed a long-term LNG supply agreement with Japan’s Jera Co. for up to 0.27 MMTPA over 10 years starting from 2027.
Mahindra & Mahindra: The company announced its next premium SUV, the XUV 7XO, as the successor to the popular XUV700.
Welspun Corp: Its associate company EPIC bagged an order worth over Rs 1,165 crore from the Saudi Water Authority.
Piramal Finance is reportedly exploring entry into the gold loan segment through acquisition.
Fujiyama Power Systems posted strong quarterly results, with profits nearly doubling year-on-year.
Overall, market experts advise investors to remain cautious in the short term, closely monitor global developments, and avoid aggressive trading until clarity emerges on interest rates and foreign fund flows.

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