With investors more risk-averse toward emerging markets like India, the large-scale outflow increased stock market volatility, weakened investor sentiment and put pressure on the rupee, which depreciated sharply, breaching the 95 mark intra day and finally closing at 94.83 against the US dollar on Monday.
With Friday’s rise, bond yield has risen by 26 basis points in the last one month. Bond prices and yields move in opposite directions — when prices rise, yields fall and vice-versa. On the other hand, benchmark bond yield in the US has risen by 48 basis points to 4.42% in the last one month.
Investors remain cautious after the Wall Street Journal reported on Monday that American allies in the Persian Gulf are “inching toward joining the fight against Iran”
Indian market indices which plunged 11.6% since the war began on February 28 are expected to rally on the back of Trump’s announcement.
This was the steepest single-day fall for the market since June 4, 2024 when voting trends during the Lok Sabha elections had shown an unexpectedly narrow win for the BJP.
Unabated foreign fund outflows also dented market sentiments, analysts said.
Both the indices are currently trading around their lowest levels in around a year. Despite reaching record highs on a couple of occasions, both have been in a consolidation phase over the past 18-24 months. They are now near February 2024 levels.
The NSE’s Nifty 50 index is down 686.85 points or 2.8% at 23,663.60 points at around 10:30 AM, the lowest level since April 2025 when US President Donald Trump had first announced reciprocal tariffs.
Worried foreign investors have taken out over $2.12 billion (Rs 19,500 crore) from the stock market in the last three sessions, exchange data shows.
The sell-off persisted through the month as further updates from Anthropic, coupled with a note from US-based research firm Citrini Research, painted a stark picture for the sector.
The fresh sell-off came after US-based Antrophic, which had first triggered fear across the sector, announced that its Claude Code AI tool can sharply reduce the cost and complexity of modernising legacy software systems, an area which is a major revenue generator for Indian IT firms.
IT stocks fell for the third straight day on Friday, with the Nifty IT index ending 1.4% lower
The trigger seems to have come from an unexpected source: Anthropic, a San Francisco-based AI start-up, launched a suite of workplace automation tools that can perform tasks previously handled by workers or traditional software platforms.
After a slow start to the session, when the 30-stock BSE Sensex had fallen 0.4%, it staged a 336-point comeback from its intraday low to eventually end the session up 943.52 points or 1.2% at 81,666.46 points.
The approval also reinforces confidence in NSE being an integral part of the Indian economy and a beacon of Indian capital markets, he added.
The currency opened weak at 91.08 on Wednesday before plunging to an all-time low of 91.75 during intraday trades. It recovered slightly to close the session at 91.70 compared to the previous close of 90.98.
The rally in precious metals offered a crucial diversification advantage to multi-asset funds at a time when equity markets were volatile and debt returns remained relatively modest
Stock Market, NSE, BSE Holiday List: NSE and BSE will remain closed on January 15, 2026, due to the Maharashtra civic body elections.
Ola Electric Mobility Share Price: Ola Electric shares slid nearly 4% to a fresh 52-week low as back-to-back promoter stake sales worth over Rs 230 crore spooked investors.
Meesho IPO listing, Share Price Today: Meesho made a strong market debut on December 10, listing at over 45% premium on the NSE and BSE after raising Rs 5,421 crore through its IPO. The company plans to invest the proceeds in cloud, AI upgrades, marketing, and platform expansion.
On a year-on-year basis, the Sensex has risen only 8.42 per cent, despite strong macroeconomic indicators and good domestic flows, especially through mutual funds.
Banking stocks, in general, have benefited from the Reserve Bank of India (RBI) reducing its policy repo rate by 100 basis points (bps) so far in 2025, with economists of the view that the central bank’s Monetary Policy Committee (MPC) may cut the key interest rate again on December 5.
Last week, the National Stock Exchange of India (NSE) said its total unique trading accounts surpassed 24 crore. The number of unique registered investors stood at 12.2 crore as of October 31, 2025, the exchange said.
The stock opened at Rs 395 on the National Stock Exchange of India, lower than the issue price of Rs 402.
For overseas investors, India’s primary market now offers far more attractive valuations than the struggling secondary market


