Markets opened on a cautious note on Wednesday and extended losses into early trade, with the Sensex falling 210.88 points or 0.25 per cent to 84,927.39 from its previous close of 85,138.27. The index opened at 85,150.64. The Nifty declined 91.75 points or 0.35 per cent to 25,940.45 from its previous close of 26,032.20, after opening at 26,004.90.
“Nifty’s correction of about 300 points from the record high can be seen as a correction driven by technical factors like rejig in the Bank Nifty and the concerns arising from the continued depreciation of the rupee,” said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited. “A real concern now, which has contributed to the slow drifting down of the market, is the continued depreciation in the rupee and fears of further depreciation since the RBI is not intervening to support the rupee.”
The Indian rupee extended its losing streak for a fifth consecutive session on Tuesday, hitting a historic low of 89.95 against the US dollar before closing at 89.88, down 32 paise. “The Indian Rupee extended its losing streak for a fifth session, hitting a historic low of 89.95 against the US dollar amid risk aversion and strong importer demand,” said Devarsh Vakil, Head of Prime Research, HDFC Securities. “Persistent pressure from a widening trade deficit and limited central bank intervention contributed to the rupee closing 32 paise weaker at 89.88.”
Foreign institutional investors have sold ₹1,32,469 crore year-to-date, adding to the pressure on domestic equities. “While dual rate-cut hopes and optimism around a potential US-India trade deal offer support, FII outflows, a record-weak rupee, and pressure on banking stocks keep sentiment fragile,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Among sectoral movers, technology stocks led the gainers list. Wipro rose 1.45 per cent to ₹253.79, while Tata Consultancy Services gained 1.07 per cent to ₹3,169.40. Dr Reddy’s Laboratories advanced 0.46 per cent to ₹1,281.10, and HDFC Bank edged up 0.24 per cent to ₹992.20. Tech Mahindra gained 0.08 per cent to ₹1,538.00.
On the losing side, Max Healthcare declined 2.14 per cent to ₹1,093.60, marking the steepest fall among Nifty constituents. Shriram Finance dropped 1.87 per cent to ₹827.60, while Coal India slipped 1.42 per cent to ₹373.55. Tata Consumer Products fell 1.30 per cent to ₹1,147.10, and Nestle India declined 1.22 per cent to ₹1,243.50.
“India’s structural growth story remains firmly on track, supported by strong earnings visibility and a supportive policy environment,” said Ponmudi R, CEO of Enrich Money. “In the near term, expectations of a potential RBI rate cut remain a key catalyst, and if delivered, could unlock an incremental 2-3 per cent upside for domestic equities.”
Market participants are now awaiting the Reserve Bank of India’s monetary policy decision and US payrolls data on 5 December for further direction. “Markets came under sharp profit-booking pressure on Tuesday’s weekly expiry, with breadth tilting firmly towards the bears as traders weighed upcoming volatility triggers—RBI policy and US payrolls on 5 December, Putin’s India visit, global inflation readings, and the Fed-ECB meetings mid-month,” Tapse added.
“The ideal strategy for investors in this period of uncertainty is to remain invested in high quality growth stocks in the large and midcap segments,” Vijayakumar said. “Smallcaps, as a segment, continues to be overvalued and are, therefore, best avoided.”
Published on December 3, 2025
