Benchmark indices extended their losing streak to a fourth consecutive session on Wednesday, with the Nifty50 closing at 25,986, down 46.20 points or 0.18 per cent, while the Sensex ended marginally lower at 85,106.81, shedding 31.46 points or 0.04 per cent.
The Indian rupee’s depreciation to a record low of 90.14 against the US dollar in early trade, eventually closing at 90.19, emerged as the key concern dampening investor sentiment.
The currency’s sixth straight session of weakness marked its longest losing run since July 2025, driven primarily by substantial foreign institutional investor outflows and restrained central bank intervention ahead of the crucial Monetary Policy Committee (MPC) decision scheduled for December 5.
“Sentiment was dampened by a weakening rupee, which hit a record low of 90.13 against the dollar, heightening concerns around import costs and triggering FII outflows,” said Ajit Mishra, SVP, Research, Religare Broking Ltd. “In addition, caution ahead of the MPC meeting and mixed global cues added to the subdued mood.”
The broader markets underperformed significantly, with the Nifty Midcap 100 declining 0.98 per cent to 60,315.65 and the Nifty Smallcap 100 shedding 0.71 per cent to close at 17,649.45.
Market breadth remained weak for the fourth consecutive session, with 2,767 stocks declining against 1,396 advances on the BSE. The advance-decline ratio slipped to 0.56, with 289 stocks hitting 52-week lows compared to just 85 at 52-week highs.
Among sectoral indices, Nifty IT emerged as the sole gainer, rising 0.8 per cent as export-oriented technology stocks benefited from rupee depreciation. Nifty PSU Bank slumped nearly 3 per cent after the government clarified it has no plans to raise the foreign direct investment limit in state-owned banks from 20 per cent to 49 per cent. Nifty Auto declined over 1.2 per cent amid profit booking.
Wipro led the gainers on the Nifty50, surging 1.61 per cent to ₹254.20, followed by Hindalco which gained 1.46 per cent to ₹818.65 and TCS which advanced 1.41 per cent to ₹3,180. ICICI Bank rose 1.38 per cent to ₹1,392, while HDFC Bank added 1.04 per cent to ₹1,000.10.
On the losing side, Max Healthcare tumbled 2.91 per cent to ₹1,085, followed by Tata Consumer which fell 2.25 per cent to ₹1,136 and Adani Enterprises which declined 2.14 per cent to ₹2,191.60. BEL dropped 2.03 per cent to ₹404.65, while Shriram Finance shed 1.83 per cent to ₹828.
“Nifty broke psychological level of 26000 but managed to close above its 20 DEMA support, which was breached during the session,” said Nandish Shah, Deputy Vice President, HDFC Securities. “A level above 20 DEMA and previous swing low of 25842 have kept the hope alive for Nifty bulls. However, on the upside, the band 26150-26200 could offer resistance in short term.”
In the commodities market, gold traded positive on MCX with gains of ₹500 at ₹130,275 as the rupee weakness provided additional support.
“Rupee weakness continues to give MCX Gold an additional lift, but the current zone is overbought and a retracement toward the ₹127,000 support cannot be ruled out,” said Jateen Trivedi, VP Research Analyst, LKP Securities.
Rahul Kalantri, VP Commodities, Mehta Equities Ltd, noted that “this week, INR is expected to remain volatile as ahead of RBI monetary policy, with USD/INR likely moving within the 89.10–90.85 range.”
The primary market witnessed action with three IPOs—Meesho, Aequs and Vidya Wires—opening for subscription, collectively looking to raise approximately ₹6,643 crore. Globally, focus remains on Russian President Putin’s visit to India on December 4-5 and US nonfarm employment data.
Looking ahead, analysts expect markets to remain range-bound, tracking currency trends, RBI monetary policy cues on Friday, and developments on the trade negotiation front. The sustainability of recovery in private banking heavyweights and IT will be crucial for any meaningful market rebound.
Published on December 3, 2025
