Sensex slides on weak Rupee, FPI flight

MUMBAI: The weakening rupee and unabated selling by foreign funds weighed on investor sentiment on Dalal Street on Monday, pulling down sensex by 610 points to 85,103 points. A rate cut decision by RBI and strong GDP growth numbers for the Sept quarter failed to arrest the slide in stock prices, market players said.

Nifty lost 226 points to close at 25,961 points. The day's slide left investors poorer by Rs 6.8 lakh crore with BSE's market cap at Rs 464.2 lakh crore.

According to Vinod Nair of Geojit Investments, the market experienced a broad-based decline, with the Nifty slipping below the 26,000-mark as investors turned cautious ahead of this week's US central bank policy decision. "Despite robust domestic growth figures and RBI's recent rate cut, short-term sentiment remains overshadowed by global monetary policy concerns, persistent (foreign fund) outflows, and currency depreciation. Volatility was further amplified by a surge in Japanese bond yields to multi-year highs, sparking fears of a potential unwinding of the yen carry trade."

So far in the month, foreign funds have net taken out about $1.2 billion from the stock market, combined data from NSDL and BSE showed. While foreign portfolio investors (FPIs) have been negative on the Indian market for the most part of 2025, domestic funds have been pumping in huge sums of money and thus supporting the leading indices. Official data showed so far in Dec, domestic institutional investors have net bought stocks worth nearly $2.5 billion.

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