Mumbai: The Indian stock market continued to drop for the second straight session on Tuesday, December 9. The Sensex fell more than 700 points during the day to touch 84,382.96, while the Nifty 50 slid 1 percent to 25,729.35.
Mid-cap and small-cap stocks were hit even harder, both falling around 1.5 percent.
In two sessions, the Sensex has lost over 1,300 points (1.5 percent), and the Nifty 50 is down nearly 2 percent.
Uncertainty Over the India-US Trade Deal
Talks between India and the US are still ongoing, but no final agreement has been reached. US trade negotiators are visiting India this week, but many fear the deal may not be completed this month because of the holiday season.
Concerns About Possible US Tariffs
A report created tension in the market saying that US President Donald Trump may impose new tariffs on Indian rice. This raised doubts about the progress of the India-US trade deal and added pressure on market sentiment.
Profit Booking Returns
On Tuesday, the markets opened weak and stayed under pressure the whole day. After Monday’s biggest fall in more than two months, investors again started booking profits, adding to the decline.
Caution Ahead of US Federal Reserve Rate Decision
Investors are staying careful before the important US Federal Reserve interest rate decision coming on Wednesday. Any signal of higher rates usually makes global markets nervous.
Sell-Off in Major Stocks and Sectors
Big companies like Asian Paints, Tech Mahindra, Reliance Industries, TCS, Tata Steel, Ultratech Cement, M&M, HCL Tech, BEL and others fell up to 3.6 percent. Only HUL and Bharti Airtel stayed in the green.
Broader markets remained weak too-Nifty Midcap fell 1.02 percent, and Smallcap dropped 1.04 percent. Sector-wise, Auto, IT and Metal were the worst performers, falling over 1 percent. Financial services, Realty, Private Banks, PSU Banks and FMCG also declined.
Disclaimer: This article is for general information only and should not be taken as financial advice. Market conditions change quickly; please consult a certified financial advisor before making investment decisions.
