Stock markets tumble in early trade amid weak global cues, FII outflows

Equity benchmark indices Sensex and Nifty fell sharply in early trade on Tuesday (December 9, 2025) in line with weak global cues, continuous foreign fund outflows and selling pressure in IT stocks and Reliance Industries.

Investor sentiment also turned cautious ahead of the U.S. Federal Reserve’s policy meeting outcome, which is expected to provide cues on the interest rate trajectory.

The 30-share Bombay Stock Exchange (BSE) index Sensex plunged by 636.22 points, or 0.75%, to 84,466.47 in early trade. The 50-share National Stock Exchange (NSE) index Nifty depreciated by 193.25 points, or 0.74%, to 25,767.30.

Among the Sensex firms, Asian Paints, Trent, Mahindra and Mahindra, Tata Steel, Tata Consultancy Services, Reliance Industries, Tata Motors Passenger Vehicles, Bharat Electronics Ltd, Tech Mahindra, NTPC, HCL Technologies, Infosys and UltraTech Cement were the laggards.

Bharti Airtel and Hindustan Unilever were the only gainers in the morning trade.

The U.S. Federal Reserve is set to begin its two-day policy meeting later on Tuesday (December 9, 2025), where the Central Bank’s Federal Open Market Committee (FOMC) will decide on key benchmark interest rates for the world’s largest economy.

The outcome will be announced on Wednesday (December 10, 2025). Meanwhile, Foreign Institutional Investors (FIIs) offloaded equities worth ₹655.59 crore on Monday (December 8, 2025), while Domestic Institutional Investors (DIIs) bought stocks worth ₹2,542.49 crore, according to exchange data.

“Despite hopes pinned on a potential U.S. Fed cut on December 10, sentiment remains fragile with FIIs continuing to sell, the rupee weakening towards ₹90 per dollar, and global cues turning softer,” Prashanth Tapse , senior vice president (Research), Mehta Equities Ltd, said.

In Asian markets, Hong Kong’s Hang Seng index, South Korea’s Composite Stock Price (KOSPI) and Shanghai Stock Exchange Composite index were trading in the negative territory while Japan’s Nikkei 225 benchmark was quoting in the green zone.

The U.S. markets ended lower in overnight deals on Monday (December 8, 2025) as investors turned cautious ahead of the Fed meeting. Brent crude, the global oil benchmark, slipped 0.21% to $62.36 per barrel.

On Monday (December 8, 2025), the 30-share BSE index Sensex plunged by 609.68 points to close at 85,102.69. Snapping a two-day gaining streak, the 50-share NSE index Nifty declined by 225.90 points to settle at 25,960.55.