Indian equity benchmarks witnessed a sharp sell-off on Tuesday, December 16, 2025, as foreign capital outflows and negative global cues spooked investors. The benchmark indices closed deep in the red, reflecting the bearish sentiment prevailing in the market.
Market Plunge: Key Numbers
The 30-share BSE Sensex experienced a significant decline, tumbling 533.50 points or 0.63% to settle at 84,679.86. The selling pressure was intense throughout the trading session, with the index at one point diving even deeper. During intraday trade, the Sensex plummeted 592.75 points or 0.69% to hit a low of 84,620.61.
Primary Drivers of the Fall
Analysts pointed to two major factors behind the market's steep fall. The primary trigger was sustained selling by Foreign Institutional Investors (FIIs). The continuous withdrawal of foreign funds from Indian equities created a supply overhang, putting downward pressure on stock prices.
Compounding the domestic outflow was a weak trend in global markets. Major indices across key financial hubs like the US and Asia were trading lower, dampening risk appetite worldwide. This global pessimism spilled over to the Indian markets, prompting local investors to adopt a cautious stance and book profits.
Implications and Market Outlook
The day's sharp correction highlights the Indian market's continued vulnerability to global fund movements and international sentiment. While domestic macroeconomic fundamentals remain relatively stable, such episodes of volatility underscore the interconnected nature of modern financial markets.
Market experts suggest that the trajectory for the near term will depend heavily on the flow of foreign capital. A reversal in FII selling could provide stability, while its persistence might lead to further consolidation. Investors are advised to monitor global cues and corporate fundamentals closely in the coming sessions.
