Indian equity markets witnessed a sharp downturn on December 10, 2025, as capital market-related stocks including BSE, MCX, Angel One, and CDSL fell up to 5 percent. The Nifty Capital Markets index extended its losing streak for the third consecutive session, closing at 4,482.10, while the benchmark Nifty 50 slipped below 25,800, signaling heightened caution among investors.
Market Overview
The sell-off was broad-based, with capital market stocks leading the decline. BSE shares dropped over 5 percent, while Angel One and CDSL also recorded significant losses. MCX, though less impacted, remained under pressure. The weakness was attributed to global uncertainty ahead of the US Federal Reserve’s FOMC meeting, where investors are closely watching for a potential rate cut.
The Sensex also fell sharply, reflecting the nervous sentiment across sectors. Analysts noted that foreign fund outflows, profit booking in midcaps, and regulatory concerns around capital market businesses added to the bearish tone.
Key Drivers Behind the Fall
- US Federal Reserve Policy: Anticipation of a rate cut or policy shift has kept global markets volatile. Indian equities mirrored this uncertainty.
- Extended Selling Pressure: The Nifty Capital Markets index has now declined for three straight sessions, showing persistent weakness.
- Regulatory Concerns: SEBI’s ongoing reviews of F&O tenures and compliance requirements have weighed on brokerages and exchanges.
- Profit Booking: After a strong rally earlier this quarter, investors are locking in gains, particularly in capital market stocks.
What Lies Ahead
Market experts believe the near-term outlook hinges on the US Fed’s decision. A rate cut could provide relief and trigger a rebound, while a status quo may extend the cautious sentiment. Domestically, investors should also watch for:
- SEBI’s regulatory updates impacting brokers and exchanges.
- Foreign institutional investor (FII) flows, which have been negative in recent sessions.
- Corporate earnings in Q4 FY25, which will set the tone for sectoral performance.
Short-term volatility is expected to continue, but long-term fundamentals of India’s capital market sector remain intact. Investors are advised to adopt a measured approach, focusing on quality stocks and avoiding overexposure to speculative trades.
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Conclusion
The fall in BSE, MCX, Angel One, and other capital market stocks highlights the fragility of investor sentiment ahead of global policy decisions. While short-term risks remain, disciplined investing backed by professional research can help navigate the turbulence. The coming days will be crucial, with the US Fed’s stance likely to set the tone for global and domestic markets.
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