The Indian stock market commenced trading on a negative note this Tuesday, December 16, with key indices slipping into the red. The downturn was driven by widespread selling pressure across sectors, reflecting cautious investor sentiment.
Key Factors Behind the Market Decline
Analysts point to two primary factors weighing heavily on market mood. Firstly, persistent selling activity by foreign portfolio investors (FPIs) has continued to drain liquidity from the markets. Secondly, the lack of concrete updates regarding the anticipated India-US trade deal is creating uncertainty, prompting investors to adopt a wait-and-watch approach. This combination has led to across-the-board selling in early trade.
Rupee Plunges to Fresh Historic Low
In a related development, the Indian currency also faced significant pressure. The rupee depreciated to a fresh all-time low of 90.82 against the US dollar during early morning trade. This record-breaking fall underscores the broader weakness in emerging market currencies and reflects the outflow of foreign capital from Indian equities.
Market Sentiment and Outlook
The current sentiment in the Indian financial markets remains fragile. The twin pressures of foreign fund outflows and currency volatility are likely to keep traders on edge in the near term. Market participants will be closely monitoring for any developments on the trade deal front and global cues for further direction. The day's trading session is expected to remain volatile as investors react to these evolving macroeconomic factors.
Track this space for ongoing live updates on the movements of the Indian stock market, key indices, and the rupee throughout the trading day.
