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Markets Extend Losing Streak as Rupee Slide and FII Selling Weigh on Sentiment
Indian equity benchmarks opened lower for a second consecutive session as sustained foreign investor outflows and a fresh record low in the rupee deepened risk aversion. Weak global cues and caution ahead of key US labour data added to the fragile market tone.
By Finblage Editorial Desk
9:51 am
16 December 2025
Indian equity markets have struggled to find stability in recent sessions amid a combination of domestic currency weakness and persistent foreign selling. After a strong multi-month rally earlier in the year, valuations remain elevated, leaving the market vulnerable to global macro shocks. The pressure intensified on Tuesday as the rupee breached another historic low, reinforcing concerns around capital flows, external balances, and near-term market direction.
At around 9:30 a.m., the Sensex was trading 385.78 points lower, down 0.45 percent at 84,827.58, while the Nifty slipped 117.15 points or 0.45 percent to 25,910.15. The decline was broad-based, reflecting a cautious stance rather than sector-specific selling.
The most immediate trigger for Tuesday’s weakness was the sharp depreciation in the Indian rupee. The currency slid to a fresh all-time low of 90.82 against the US dollar, extending its decline for the fourth consecutive session. This marked a breach of Monday’s previous record low of 90.7875.
The rupee’s weakness is being driven by sustained dollar demand, particularly linked to the likely maturity of positions in the non-deliverable forwards (NDF) market. This has coincided with continued portfolio outflows from Indian equities. The currency has now depreciated around 6 percent against the US dollar this year, placing it among the weakest-performing emerging market currencies globally.
Alongside currency pressures, foreign institutional investors have remained net sellers. FIIs sold equities worth ₹1,468.32 crore on Monday, marking the twelfth consecutive session of net outflows. This extended selling streak has become a key overhang for domestic equities, particularly at a time when global risk appetite is turning cautious.
Global cues also remained unfavourable. Wall Street futures were down by up to 1 percent during Indian market hours, signalling a weak start for US equities. Investors are also positioning cautiously ahead of the release of US jobs data by the Bureau of Labor Statistics for November, a report that could influence expectations around US interest rates and the dollar’s trajectory.
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