Market Explained / Why Share Market Is Down Today
·3 months ago·3 min read
Key Points
- Sensex fell over 700 points and Nifty slipped below 26,000 amid broad sell-off.
- MidCap and SmallCap indices dropped sharply, with Realty and PSU Bank sectors leading losses.
- SBI Funds says India’s market outlook remains constructive on strong GDP growth and policy support.
Mumbai, Dec 8: Benchmark equity indices fell sharply on Monday as broad-based selling pressure and the absence of domestic market triggers weighed on investor sentiment. The BSE Sensex dropped more than 700 points during afternoon trade, while the NSE Nifty50 slipped below the 26,000 mark.
At 1:45pm, the Sensex stood at 84,982, down 730 points (0.85%), and the Nifty50 was at 25,938, lower by 248 points (0.95%).
Market weakness was led by heavy losses in Bajaj Finance, Power Grid, Adani Ports, BEL, Eternal and Trent. In contrast, HCL Technologies, Tech Mahindra, TCS, HDFC Bank and Infosys were among the few gainers.
Broader markets saw deeper cuts, with the Nifty MidCap index falling 1.8% and the Nifty SmallCap index declining 2.5%. Sectorally, Realty, PSU Bank and Pharma indices were the worst hit, dropping up to 3.5%.
The sell-off triggered a spike in intraday volatility, reflecting heightened caution among investors. Analysts said the market lacked fresh domestic cues, while global and local risk factors contributed to the overall negative sentiment.
At 1:51pm, the Sensex was at 84,989.77, down 722.60 points, and the Nifty50 had slipped 250.85 points to 25,936.45.
Meanwhile, India’s market outlook is turning increasingly constructive, as resilient GDP growth, improving earnings expectations and supportive monetary policy begin to lift investor sentiment, a new report said on Monday.
The data compiled by SBI Funds Management noted that while near-term challenges persist, the overall environment for equities is gradually strengthening, setting the stage for a measured but steady improvement ahead.
According to SBI Funds, India’s real GDP growth remains well above forecasts, with the economy expanding 7.8 per cent in Q1 FY26 and 8.2 per cent in Q2 FY26.
Equity markets posted healthy gains in November, with the Nifty rising 2 per cent and the Sensex climbing 2.2 per cent, the report authored by Rajeev Radhakrishnan, CFA (CIO – Fixed Income) and Gaurav Mehta, CFA (Head – SIF Equity) said.
SBI Funds highlighted that large caps continued to outperform mid-cap and small-cap stocks -- indicating a narrowing market breadth.
Also Read: Complete All Pending Passenger Refunds By 8 PM On Sunday: Centre To IndiGo
In the BSE 500 universe, nearly two-thirds of stocks underperformed the index on a rolling 12-month basis. The fund house expects this polarization to persist, as large caps are still more reasonably valued than the broader market.
At 1:45pm, the Sensex stood at 84,982, down 730 points (0.85%), and the Nifty50 was at 25,938, lower by 248 points (0.95%).
Market weakness was led by heavy losses in Bajaj Finance, Power Grid, Adani Ports, BEL, Eternal and Trent. In contrast, HCL Technologies, Tech Mahindra, TCS, HDFC Bank and Infosys were among the few gainers.
Broader markets saw deeper cuts, with the Nifty MidCap index falling 1.8% and the Nifty SmallCap index declining 2.5%. Sectorally, Realty, PSU Bank and Pharma indices were the worst hit, dropping up to 3.5%.
The sell-off triggered a spike in intraday volatility, reflecting heightened caution among investors. Analysts said the market lacked fresh domestic cues, while global and local risk factors contributed to the overall negative sentiment.
At 1:51pm, the Sensex was at 84,989.77, down 722.60 points, and the Nifty50 had slipped 250.85 points to 25,936.45.
Meanwhile, India’s market outlook is turning increasingly constructive, as resilient GDP growth, improving earnings expectations and supportive monetary policy begin to lift investor sentiment, a new report said on Monday.
The data compiled by SBI Funds Management noted that while near-term challenges persist, the overall environment for equities is gradually strengthening, setting the stage for a measured but steady improvement ahead.
According to SBI Funds, India’s real GDP growth remains well above forecasts, with the economy expanding 7.8 per cent in Q1 FY26 and 8.2 per cent in Q2 FY26.
Equity markets posted healthy gains in November, with the Nifty rising 2 per cent and the Sensex climbing 2.2 per cent, the report authored by Rajeev Radhakrishnan, CFA (CIO – Fixed Income) and Gaurav Mehta, CFA (Head – SIF Equity) said.
SBI Funds highlighted that large caps continued to outperform mid-cap and small-cap stocks -- indicating a narrowing market breadth.
Also Read: Complete All Pending Passenger Refunds By 8 PM On Sunday: Centre To IndiGo
In the BSE 500 universe, nearly two-thirds of stocks underperformed the index on a rolling 12-month basis. The fund house expects this polarization to persist, as large caps are still more reasonably valued than the broader market.
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