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Sensex, Nifty Slides Below Key Levels on Dec 16; Why is the Indian stock market falling Today?

Written by: Neha DubeyUpdated on: 16 Dec 2025, 4:47 pm IST
Indian equities declined sharply as the Sensex fell 500 points and Nifty slipped below 26,000 amid weak global cues and currency pressure.
Sensex, Nifty Slides Below Key Levels
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Indian equity markets opened lower on Tuesday, December 16, with benchmark indices facing broad-based selling. 

Weak global signals and concerns around domestic macroeconomic indicators weighed on investor sentiment.

Both large-cap and broader market segments came under pressure, leading to a notable erosion in market capitalisation during early trade.

Benchmark Indices Under Pressure

The Sensex declined close to 500 points during intraday trade, touching a low of 84,716. The Nifty 50 also slipped below the 26,000 mark, falling to an intraday low of 25,879.

The move below this psychological level added to cautious sentiment among market participants.

Weakness in Midcap and Smallcap Stocks

Selling pressure was not limited to frontline indices. The BSE Midcap and Smallcap indices each fell by more than half a per cent during the session, indicating a broader risk-off approach across market segments.

Erosion in Market Capitalisation

Investor wealth saw a sharp decline in early trade, with nearly ₹2 lakh crore wiped out within the first half hour, as per news reports.

By 9:45 AM, the total market capitalisation of BSE-listed companies stood at around ₹469 lakh crore, compared with ₹471 lakh crore in the previous session.

December Performance Trends

The domestic market has remained subdued so far this month. Both the Sensex and the Nifty 50 are down by about 1% in December to date, putting their three-month upward run at risk.

The recent decline reflects growing caution amid external and internal headwinds.

Rupee Weakness Weighs on Sentiment

One of the key factors affecting market sentiment has been the continued weakness of the Indian rupee against the US dollar. 

The currency has been hovering near record lows, opening at 90.79 per dollar on Tuesday.

Persistent foreign investor outflows and trade imbalance concerns have contributed to the rupee’s decline of around 6% so far this year.

Read More: Sagarmala Finance Corporation Set to Begin Lending to Maritime Sector.

Conclusion

The latest market decline highlights the sensitivity of Indian equities to global cues and macroeconomic developments, including currency movements. 

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Dec 16, 2025, 11:16 AM IST

Neha Dubey

Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.

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