Stock Market Crash Today Live: Sensex, Nifty 50 Down 1.31% – Top Reasons Explained

Stock Market Crash Today Live: Indian equity indices Sensex and Nifty 50 have seen a sharp fall on December 17, with declines of around 1.31%. Hefty selling has dragged the markets down. The BSE Sensex fell 807 points and closed at 80,733, whereas Nifty 50 plunged 324.75 points to settle at 24,366. Major stocks such as Reliance Industries, HDFC Bank, and Infosys were the key laggards as investor sentiment remained cautious ahead of the US Federal Reserve’s monetary policy meeting. While benchmark indices faced heavy pressure, broader markets performed relatively better, with Nifty Midcap and Nifty Smallcap indices declining just 0.2% each.

Investors stayed in wait-and-watch mode with regards to the monetary policy announcement from the US Federal Reserve, scheduled for December 18. The market widely expects the Fed to trim the rates by 25 basis points, though vagaries of Fed’s rate-cut trajectory in 2025 has kept investors’ nerves frayed. “Any deviation from dovish commentary would be a negative trigger for markets though it remains a remote possibility,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services

Reports of a growing Chinese budget deficit in 2025 led to fears that Foreign Institutional Investors (FIIs) would divert investments to China. Seema Srivastava, Senior Equity Analyst at SMC Global Securities, said: “The ‘Sell India, Buy China’ sentiment may cause temporary selling pressure in Indian markets, although recovery is likely at lower levels.”

India’s trade deficit widened to $37.8 billion in November, adding to the pressure on the rupee, which may further depreciate to around 85 against the dollar. “While IT and pharma exporters may benefit from a weaker rupee, importers face higher costs, impacting their stock prices,” explained Vijayakumar.

Global markets remained soft, with Asian indices having mixed trends. Nikkei in Japan slid 0.15%, while MSCI Asia-Pacific (ex-Japan) slipped 0.3%. European stock futures too signaled a weak opening. Experts cited spiking VIX as a harbinger of the fact that investors were becoming wary. Geojit Financial Services’ Chief Market Strategist Anand James said, “Markets could witness further consolidation and the downside marker has been placed at 24,400 for Nifty 50.”

Stock Market Crash Today Live: Stocks and Sectors Overview

Among Sensex stocks, ITC and Adani Ports remained within the green while the majors’ HDFC Bank, Reliance Industries, ICICI Bank, Bharti Airtel, and L&T saw further declines. In the Nifty 50 pack, Adani Ports, Cipla, ITC, Apollo Hospitals and Tata Motors featured as the main gainers while Shriram Finance, Grasim and Hindalco figured as leaders among losers.

Nifty Bank, Financial Services, and Oil & Gas declined by more than 1%. Nifty Auto, FMCG, IT, and Metal fell by over 0.5%. On the positive side, both Nifty Media and Realty were up by 1%. Indian stocks are facing pressure because of mixed threats of global uncertainty, fear among FII, and worries from a domestic trade deficit. The outcome of US Federal Reserve policy will give directions as the investors wait. There can still be market volatility as long as experts maintain; however, it can rebound once clear cut news emerges.

*Disclaimer: Informational purposes only. Investments or other financial decisions should not be undertaken without proper consultation of qualified practitioners.