Sensex falls 800 pts, Nifty below 26k: Why are stock markets falling today?

The BSE Sensex tumbled 803 points in the intraday to hit a low of 84,909, and the NSE Nifty50 also slipped below the 26,000 mark in the intraday to hit a low of 25,902.95

Why markets are falling today: Indian equity benchmark indices, Sensex and Nifty, were trading sharply lower on Monday, December 8, 2025, snapping their two-day gaining streak driven by optimism over 25 basis points repo rate cut by the Reserve Bank of India. The decline came as investors turned cautious ahead of the US Federal Reserve's interest rate decision on Wednesday, December 10. 

 

The BSE Sensex tumbled 803 points in the intraday to hit a low of 84,909. The NSE Nifty50 also slipped below the 26,000 mark in the intraday to hit a low of 25,902.95, down 283.5 points from the previous session's close of 26,186.45.

 

The Sensex closed at 85,102.69 levels, down by 609.68 points or 0.71 per cent. The Nifty50 closed at 25,960.55 levels, down by 225.90 points or 0.86 per cent. 

Twenty-nine of the 30 Sensex constituents settled in red, including BEL, Eternal, Bajaj Finance, Trent, Bajaj Finserv, Adani Ports, Power Grid, Tata Motors PV, Tata Steel, SBI, NTPC and Asian Paints, down up to 5 per cent.

 

Similarly, in the broader market, the NSE MidCap 100 index was trading 1.83 per cent, and the Nifty SmallCap 100 index was down 2.61 per cent. 

 

All the sectoral indices were trading in the red. The Nifty Realty index was the top laggard, down nearly 4 per cent, followed by Nifty PSU Bank, Media, Metal, Auto, Financial Services, FMCG, Consumer Durables, Oil & Gas and Chemicals.

 

According to Ponmudi R, chief executive officer at Enrich Money, mixed global cues, persistent rupee weakness, and ongoing FII selling continue to weigh on near-term risk appetite. "While the RBI’s recent rate cut lends support to the medium-term growth narrative, the immediate sentiment remains defensive, with traders and investors reluctant to take fresh directional positions until clearer signals emerge," he said.  

Here are the key reasons behind Sensex, Nifty fall today, December 8:

Caution ahead of US Fed meet: Investors are maintaining a cautious stance ahead of the US Fed's two-day meeting beginning on December 9. "Investors positioned cautiously ahead of the upcoming FOMC meeting, additional inflation releases, and year-end portfolio adjustments," said Devarsh Vakil, head of prime research at HDFC Securities. He added that central banks in Australia, Brazil, Canada and Switzerland are also scheduled to meet this week, though no policy changes are expected outside the Fed.

 

Rupee depreciation: The Indian rupee declined to a low of 90.38 against the US dollar in early trade on Monday, led by high crude oil prices and ongoing foreign fund outflows. According to Jateen Trivedi, VP research analyst for commodity and currency at LKP Securities, while the RBI’s 25 bps rate cut may offer some stability to financial sectors, delays in the India–US trade deal and soaring bullion and metal prices continue to weigh on sentiment.

 

FII selling: Foreign institutional investors (FIIs) have remained net sellers in Indian equities this month so far. Continuing their selling trend for the seventh consecutive session on Friday, they posted net equity outflows of ₹438.90 crore.

 

Rising crude oil prices: Oil prices hovered at two-week highs on Monday. Brent crude, the global oil benchmark, rose 0.13 per cent to $63.83 per barrel. Higher crude prices tend to pressure India’s import bill and fuel inflation concerns, often prompting cautious sentiment in the equity market. "Investors expect a Federal Reserve interest rate cut this week that will lift economic growth and energy demand while eyeing geopolitical risks that threaten oil supplies from Russia and Venezuela," Vakil said.

 

Heightened volatility: VK Vijayakumar, chief investment strategist at Geojit Investments, said emerging positive and negative news have the potential to keep the market volatile in the near-term. Robust economic growth and indications of earnings growth revival are supportive of markets. "However, there are strong negatives, too, which can impact the market. Sustained depreciation of the rupee has been forcing FIIs to sell in the market continuously. Another major factor is the spike in  Japanese bond yields, which can trigger another bout of reversal of the yen carry trade. In brief, there is potential for high volatility," he added.

 

Technical view: Ponmudi said any decisive breakdown below 26,000 could trigger short-term profit booking and drag the index towards 25,900–25,850. Option data reflects this consolidation bias clearly. Fresh put writing near the 26,000 strike indicates strong near-term support, while call writing around the 26,200–26,300 zone confirms the ongoing range-bound structure for today’s session.