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Why Market Is Down Today: Reasons, Updates & Top 5 Loser Stocks
Market Down Today- A stock market decline continued for the second day, with equities falling sharply as investors waited for a Federal Reserve policy statement, which added to the unease prevailing in the market.
Market sentiment was weakened by a US threat of tariffs against India's rice exports.
Market Update
Nifty Today: By 9.50 a.m. the Sensex today fell by 633.90 points (0.74%) to 84,468.79 and the Nifty fell by 211.25 points (0.81%) to 25,749.30.
All 16 major sectoral indices were negative.
Key Market Crash Reason
1) Fed meeting outcome jitters:
Before the Fed's two-day meeting began, investors were on the edge of their seats attempting to predict if the Fed would make a 25 basis-point cut on the forthcoming Wednesday.
Investors in the market are trying to gauge the timing of the Fed's rate cuts for 2026 as inflation is still a big factor in the economy and the markets are expecting the US economy to do relatively well.
2) US-China tariff threat on rice exports:
US President Donald Trump has expressed concern over the dumping of rice into the US economy as he looks to impose tariffs on rice exports from India, putting pressure on the exports of rice.
The US is the fourth largest market for Indian basmati rice with 270 thousand metric tonnes exported. Indian exporters have unfenced the export Indian base price with US importers absorbing the tariffs, thereby passing the additional costs onto the consumers.
3) Decline in Rupee:
Demand from corporates, foreign portfolio investors, and importers has increased, weakening the Rupee by 10 paise to 90.15 in intraday trade. Waiting on the federal policy statement has traders in a holding pattern. The currency decreased from a previous close to 90.15 in interbank foreign exchange.
"Sentiment remains fragile with FIIs continuing to sell, the Rupee weakening to 90 per USD, and global cues continuing to soften, despite hopes on a potential US Fed cut due December 10," stated Prashanth Tapse, Senior VP Research from Mehta Equities Ltd.
4) FII Selling:
The persistent selloff from foreign institutional investors continues to impact the stock market decline. Selling ₹655.59 crore on Monday was the first FII outflow of the eighth straight session. The absence of foreign euros usually results in market weakness while global uncertainty remains.
5) Weak Global Cues:
Weak global cues also continued to persist. Caution before Fed policy meetings was a common sentiment across indices, with South Korea's KOSPI and Hong Kong's Hang Seng printing red, and Shanghai's SSE Composite slipping lower. The US markets also printed red on Monday.
6) Broader markets extend decline:
Mid and small-cap shares continued to decline in today's session, with the indices falling by up to one %. In the previous session, the Nifty Midcap 100 fell by 1.83%, Nifty Small Cap 100 fell by 2.61%, this was the steepest single day fall since April 7, 2025 and represents a six-month low.
7) Selling in IT shares:
IT stocks were one of the main drags. Coforge and Persistent Systems were some of the biggest losers and all 10 components of the Nifty IT index were trading in the red.
(Source: MoneyControl)
Top 5 Impacted Stocks
1. Ather Energy
Ather Energy is among the top losers for today, fell by 4.29% and is currently trading at Rs. 650 as of 09 Dec 2:03 p.m.
2. Asian Paints
Asian Paints is another top loser for the intraday session, trading at Rs. 2,806, fell by 4.10% as of 09 Dec 2:08 p.m.
3. Coforge
Coforge is down by 3.92%, trading currently at Rs. 1,875 as of 09 Dec 2:11 p.m.
4. eClerx Services
The share of eClerx Services fell by 4.89% and is trading at Rs. 4,548 as of 09 Dec 2:12 p.m.
5. H.G. Infra Engineering
H.G. Infra Engineering share is currently trading at Rs. 765, down by 3.77% as of 09 Dec 2:14 p.m.
DISCLAIMER: This blog is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.
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Frequently Asked Questions
The stock market is down today mainly due to caution ahead of the US Federal Reserve policy meeting, fears of new US tariffs on India’s rice exports, continued FII selling, weakness in the rupee, and negative global cues. These combined factors triggered broad-based selling across sectors.
Market recovery depends on the outcome of the upcoming Federal Reserve policy announcement, global sentiment, and whether FII selling reduces. If the Fed signals a clear roadmap for rate cuts, markets may see a short-term rebound. However, volatility may continue until global uncertainties ease.
FIIs are selling due to global risk-off sentiment, uncertainty around US rate cuts, a strengthening US dollar, and rising geopolitical concerns. A weaker rupee also affects FII returns, prompting more outflows from Indian equities.
During today’s decline, all 16 major sectoral indices were negative. IT, Midcap, Smallcap, and Consumer stocks witnessed the sharpest fall due to profit booking, weak global signals, and higher sensitivity to foreign investor flows.
Buying during market dips can be beneficial for long-term investors, but only after evaluating fundamentals. Falling markets also create value-buying opportunities, but short-term traders should wait for stability. Always consult a financial advisor before making decisions.
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