Sensex tumbles 500+ points, ₹3 lakh crore wiped out — 10 key stock market takeaways

The Indian equity market ended sharply lower on Tuesday, December 16, weighed down by a record fall in the rupee and subdued global cues that dampened investor sentiment across sectors. The Sensex slipped 534 points, or 0.63%, to close at 84,679.86, while the Nifty 50 declined 167 points, or 0.64%, settling at 25,860.10. Broader markets also remained under pressure, with the BSE Midcap index falling 0.78% and the Smallcap index losing 0.69%.

The day’s sell-off wiped out more than ₹3 lakh crore of investor wealth, as the total market capitalisation of BSE-listed companies fell to ₹467.6 lakh crore from ₹471 lakh crore in the previous session.

Indian stock market: 10 key highlights

1. Why did the market decline today?

The sharp depreciation of the rupee emerged as the primary trigger for Tuesday’s fall. The domestic currency slipped to a record low of 91 against the US dollar, stoking concerns over capital outflows and macroeconomic stability. Weak global cues and continued selling by foreign institutional investors added to the pressure.

According to Vinod Nair, Head of Research at Geojit Investments Limited, persistent FII outflows combined with muted global sentiment dragged domestic equities into negative territory. He added that market volatility is likely to remain high amid currency fluctuations and uncertainty over foreign inflows, while progress on a potential US–India trade agreement and rupee stabilisation could offer some relief going forward.

2. Top gainers on the Nifty 50

Only 11 stocks ended the session in positive territory on the Nifty 50. Bharti Airtel led the gainers, rising 1.70%, followed by Titan Company, which advanced 1.65%, and Tata Consumer Products, up 1.26%.

3. Top losers on the Nifty 50

Axis Bank emerged as the biggest laggard, tumbling 5.12%. Eternal slipped 4.67%, while JSW Steel declined 2.66%, as selling pressure intensified in banking and metal stocks.

4. Sectoral performance

Sectoral indices largely mirrored the broader weakness. Nifty Bank fell 0.72% and the Financial Services index dropped 0.79%. Nifty Private Bank and Realty indices were among the worst hit, declining 1.23% and 1.29%, respectively. PSU Banks, IT, and Oil & Gas indices also closed lower, losing between 0.77% and 0.89%.

5. Most active stocks by volume

Vodafone Idea topped the volume charts with 71.3 crore shares traded on the NSE. Meesho followed with 17.2 crore shares, while Tata Teleservices (Maharashtra) saw volumes of 13.3 crore shares.

6. Stocks gaining over 15% despite weak markets

Defying the broader market trend, eight stocks surged more than 15% on the BSE. These included Amines and Plasticizers, Asahi Songwon Colors, Ampvolts, Shish Industries, PMC Fincorp, Tilak Ventures, Agri-Tech (India), and EPACK Durable.

On the downside, Fabino Enterprises, Chemkart India, Allcargo Terminals, Unifinz Capital India, and Patel Engineering-RE plunged over 15%.

7. Advance-decline ratio

Market breadth remained negative. Of the 4,335 stocks traded on the BSE, 1,654 stocks advanced, while 2,523 declined. Around 158 stocks ended unchanged.

8. Stocks at 52-week highs

A total of 103 stocks touched their 52-week highs during the session. Notable names included Vedanta, Hindustan Zinc, and Ashok Leyland.

9. Stocks at 52-week lows

Meanwhile, 139 stocks hit fresh 52-week lows on the BSE. Among them were ACC, REC, Petronet LNG, Page Industries, and Mankind Pharma.

10. Nifty’s technical outlook

Shrikant Chouhan, Head of Equity Research at Kotak Securities, said the intraday market structure remains weak, with further selling likely only if the Nifty decisively breaks below 25,800. Below this level, the index could test the 25,700–25,650 zone. On the upside, 25,920 is seen as an immediate resistance, with a potential rebound toward 26,050–26,100 if breached.

Hrishikesh Yedve, AVP – Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd, noted that the Nifty formed a bearish candle on the daily chart. He added that trendline support lies near 25,750, close to the 50-DEMA at 25,760. A decisive break below this level could deepen the weakness, while 26,100 and 26,325 are key resistance levels. Short-term traders, he advised, should consider booking profits on rallies.