Indian equity markets witnessed a sharp sell-off on Monday, December 8, 2025, as both benchmark indices closed deep in the red. The Sensex tumbled 609 points to settle at 85,412, while the Nifty slipped below the crucial 26,000 mark, ending at 25,987. The downturn was led by weakness in realty, banking, and IT stocks, while heightened volatility added to investor concerns.
Key Sectoral Movements
- Realty Index: The real estate sector was the biggest drag, plunging nearly 3% amid profit booking and concerns over rising borrowing costs.
- Banking & Financials: Heavyweights in the banking space saw selling pressure as investors turned cautious ahead of upcoming inflation data.
- IT Stocks: Technology counters also slipped, tracking weak global cues and concerns over slowing demand in overseas markets.
- Pharma & FMCG: These defensive sectors managed to limit losses, with select stocks showing resilience.
Volatility Surge
The India VIX, a measure of market volatility, spiked 8% to 15.2, reflecting heightened nervousness among traders. Analysts noted that the rise in VIX signals expectations of further swings in the near term, especially with global uncertainties and domestic macroeconomic data releases lined up.
Broader Market Performance
Mid-cap and small-cap indices also ended lower, though losses were relatively contained compared to frontline benchmarks. Market breadth remained weak, with more than two-thirds of stocks on the NSE closing in the red.
Global and Domestic Factors
- Global cues: Weakness in Asian and European markets weighed on sentiment, as investors remained cautious about global growth prospects.
- Domestic triggers: Concerns over inflation, rising crude oil prices, and expectations of tighter liquidity conditions contributed to the sell-off.
- Foreign flows: Continued foreign portfolio investor (FPI) outflows added pressure on the rupee and equity markets.
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Conclusion
The sharp fall in Sensex and Nifty underscores the fragility of investor sentiment amid global and domestic headwinds. Realty stocks bore the brunt of selling, while the spike in volatility suggests caution ahead. Market experts advise investors to remain selective, focus on fundamentals, and prepare for continued swings in the near term.
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