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Sensex, Nifty Extend Slide as Rupee Breaches 90 and FPI Selling Persists

Investor focus now turns to the Fed decision following two weak sessions.

Overview

  • Benchmarks fell for a second day on Tuesday, with the Sensex closing at 84,666 (-436) and the Nifty at 25,839 (-121) after an early plunge to the day’s lows.
  • Cumulative damage over two sessions topped 1,300 points on the Sensex, and Monday’s rout alone erased roughly Rs 7–7.6 lakh crore in BSE market value.
  • The rupee’s drop past 90 per dollar pressured overseas returns, with FPIs continuing to sell (about Rs 11,820 crore in the first week of December and Rs 655 crore net on Monday) as DIIs bought roughly Rs 2,542 crore.
  • Risk appetite stayed weak on caution before the US Fed’s policy call and uncertainty around IndiaUS trade talks, with reports of potential US tariffs on Indian rice adding to anxiety; volatility gauges ticked higher.
  • After a broad early sell-off, IT and auto led declines at the close, while PSU banks, consumer durables and realty edged higher and small-caps outperformed on a rebound.