Red Alert on Dalal Street: ₹7-Lakh Cr Erased, Market Nosedives as FIIs Exit & Rupee Tanks

Market Closing

Markets witnessed a sharp sell-off today. Sensex dropped ~610 points (-0.71%) to ≈ 85,102.69, while Nifty 50 slid ~226 points (-0.86%) to ≈ 25,960.55. Mid-cap and small-cap indices were heavily hit: down ~1.7%–2.2%.

Why the Crash?

• Heavy foreign fund outflows — FIIs pulled out nearly ₹11,820 crore in first week of December alone.
• Global risk-off mood and rising global yields reduced risk appetite.
• Rupee depreciation aggravated inflation and cost-side concerns for import-heavy firms.
• Lack of positive domestic triggers; sellers dominated as fear spread.

Sector & Stock Impact

• Export-linked IT/tech firms saw minor gains (due to currency tailwind), but gains couldn’t offset overall negative sentiment.
• Power, infrastructure, and capital-goods names suffered as investors pulled out of rate-sensitive and high-debt sectors.
• Mid-cap and small-cap stocks under-performed large caps, showing wide market weakness.

What to Watch Tomorrow

• Foreign flows — any reversal could bring relief rally
• Rupee movement & global cues — stability here may calm markets
• Earnings & export-oriented stocks — they might offer safe-haven picks
• Key support zones (Nifty ~25,850; Sensex ~85,000) — watch if levels hold or break

Final Take

Today’s drop was sharp but driven by macro & global fears, not company-specific issues.
If you invest, now might be a time to watch for buying opportunities — especially in quality exporters or undervalued mid-caps.
But caution is key: wait for market stability before placing fresh bets.