Sensex cracks 533 pts, Nifty ends at 25,860; why markets fell today?

Stock Market Today: The BSE Sensex dropped to an intra-day low of 84,684, with Indian Rupee sliding to 91.05 versus the US dollar on Tuesday.

The BSE Sensex and the NSE Nifty languished in the negative zone in Tuesday's trade weighed by weak sentiment owing to a falling Rupee, FIIs selling and weak global cues.  The Sensex hit an intra-day low of 84,621, and finally settled 533 points or 0.6 per cent lower at 84,689. The NSE Nifty 50 touched a low of 25,834, and ended with a loss of 167 points at 25,860.  Analysts reckon that the overall sentiment in Indian equity remained tepid owing to sub-par earnings growth; the recent fall in Indian Rupee and uncertainty of the India-US trade deal has further dented the market sentiment.  Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services believes that the markets are primarily underperforming owing earnings disappointment. Indian valuations continues to remain higher compared to other markets; however with current India's premium valuations are not delivering superior growth, hence FIIs are net sellers, said Vijayakumar.  On Tuesday, among the Sensex 30 shares - Eternal and Axis Bank plunged around 4 per cent each; whereas in terms of index weightage - these 2 stocks coupled with Reliance Industries accounted for a loss of 475 points on the BSE benchmark. Track LIVE Updates  Tata Steel, HCL Technologies, Bharat Electronics, UltraTech Cement, Infosys, Bajaj Finance and Bajaj Finserv were the other major losers.  On the positive side, Titan and Bharti Airtel gained around 1 per cent each. 

Here's why the Indian stock markets were falling on Tuesday:

  Indian Rupee hits new all-time low: The Indian Rupee tumbled to a fresh all-time low of 91.08 versus the US dollar in trades on Tuesday. The Indian currency has depreciated by more than 1 per cent in the last five trading sessions.  "A sharp decline in the Indian Rupee today was unexpected given the India's trade deficit narrowed to a 5-month low; but may be FIIs selling seems to be weighing on the sentiment," said Dr. V. K. Vijayakumar, Chief Investment Strategist of Geojit Financial Services.  The analyst, however, expects the Indian Rupee to stabilize around current levels.  FIIs outflows: Foreign institutional investors (FIIs) have remained persistent sellers in December thus far. On Monday, FIIs net sold stocks worth ₹1,468.32 crore, thus taking their overall monthly tally to ₹21,073.83 crore.  Data shows that FIIs have been persistent sellers in Indian stock market since July 2025. They have net sold equities worth ₹1,70,000 crore.  India-US trade deal: The uncertainty around the signing of India-US trade deal continues, with reports indicating that a deal may be signed soon.  India's commerce secretary Rajesh Agrawal on Monday said that India and the US are hoping to finalise a framework trade agreement "soon", one of a large number of trade deals that New Delhi is negotiating with countries and groupings across the world. READ MORE  Vijayakumar, however, believes that India will maintian its firm stance on dairy products and will not show any desperation for the deal. India has also started rerouting some its trades.  Weak global cues: Asian markets were seen trading with losses in the run-up to the US jobs data and a stronger Japense Yen. Hang Seng cracked up to 2 per cent. Japan's Nikkei plunged 1.6 per cent. Taiwan and Shanghai Composite were also down 1 per cent each. The focus is also on the upcoming Bank of Japan's policy decision on Friday.