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Rupee Slide and FPI Selling Sink Sensex, Nifty as Over Rs 7 Lakh Crore Is Erased

Rupee depreciation keeps foreign outflows elevated, putting the Federal Reserve decision in sharp focus.

Overview

  • The Sensex closed down 609.68 points at 85,102.69 and the Nifty finished at 25,960.55, dropping below the 26,000 mark after a late-session sell-off.
  • Investor wealth shrank by roughly Rs 7–7.5 lakh crore, with BSE market capitalisation falling to about Rs 463–464 lakh crore.
  • Foreign investors pulled Rs 11,820 crore from equities in the first week of December, extending a multi-month exodus to roughly Rs 1.55 lakh crore this year and marking an eighth straight session of net selling on Monday.
  • The rupee hovered around 90 to the dollar after a year-to-date slide, a key factor cited by analysts for persistent FPI selling and pressure on benchmarks.
  • Broader markets fell more sharply, with mid- and small-cap indices down over 2% and an overwhelming majority of constituents in the red, as traders awaited the US Fed’s policy outcome and tracked overseas bond yields.