The Indian equity market faced a pronounced downturn in the first week of December 2025, with the Nifty 50 index witnessing sharp declines in line with the broader market trend. On December 8, the
Nifty declines generally stem from a combination of global economic uncertainty, foreign investor selling, currency weakness, and concerns over domestic macro trends. When overall risk sentiment deteriorates, broad-based selling can pressure the index.
In 2008, during the Global Financial Crisis, the Nifty dropped sharply from its highs. It fell from above 6,000 in early 2008 to below 2,600 by October 2008—a decline of more than 50%.
Consecutive declines often occur when global cues remain negative, foreign investors continue exiting positions, or domestic triggers fail to support sentiment. This creates a feedback loop of selling and caution.