Sensex, Nifty Plunge: Foreign Outflows, Weak Rupee Drive Market Decline on Dec 16

• Sensex fell 0.63% and Nifty 0.64% on December 16, extending losses and snapping a three-month winning streak.
• Key factors for the decline included persistent foreign institutional investor (FII) outflows and a weakening Indian rupee near its record low against the US dollar.
• Weak global cues, with major Asian markets and Nasdaq falling, and caution ahead of US jobs data and central bank policy decisions (BoE, BoJ) also impacted sentiment.
• Tight liquidity in the secondary market, attributed to a surge in IPO activity, further pressured indices.
• Investors saw nearly Rs 2 lakh crore wiped out from BSE-listed companies' market capitalization within the first half hour of trade.

Why It Matters: Indian markets declined due to FII outflows, weak rupee, global cues, and tight liquidity, snapping a winning streak.