The modest opening reflected mixed global cues and ongoing concerns about foreign institutional investor outflows and persistent rupee weakness, even as expectations of a US Federal Reserve rate cut provided some support.
The Sensex, which closed at ₹85,106.81 in the previous session, opened at ₹84,987.56, while the Nifty, which had settled at 25,986.00, started the day at 25,981.85. The modest opening reflected mixed global cues and ongoing concerns about foreign institutional investor outflows and persistent rupee weakness, even as expectations of a US Federal Reserve rate cut provided some support.
“From an Indian standpoint, movement in US bond yields and the US dollar will be crucial, as both will significantly influence foreign investor sentiment,” said Ponmudi R, CEO of Enrich Money, a SEBI registered online trading and wealth tech firm. “With the RBI policy decision around the corner, volatility is likely to remain elevated, keeping traders cautious at the open.”
Information technology stocks emerged as the morning’s top performers, with TCS leading the gainers pack, rising 1.48 per cent to ₹3,227.10. HCL Technologies gained 1.25 per cent to ₹1,661.00, while Wipro advanced 1.05 per cent to ₹257.36 and Tech Mahindra climbed 1.01 per cent to ₹1,557.20. Eicher Motors also featured among the top gainers, rising 0.99 per cent to ₹7,151.50.
On the losing side, Max Healthcare led the decliners, falling 1.34 per cent to ₹1,071.40, followed by Eternal, which dropped 1.28 per cent to ₹293.95. IndiGo declined 0.80 per cent to ₹5,551.00, Titan Company shed 0.70 per cent to ₹3,790.90, and Power Grid Corporation lost 0.58 per cent to ₹266.90.
“Market is currently in the midst of two opposing forces: one negative and the other positive,” said Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. “Sharp depreciation of above 5 per cent in the rupee and RBI’s policy of non-intervention to support the currency is a negative from the FII’s perspective.”
The rupee continued its downward trajectory, marking its longest losing streak since July 2025, having closed at a fresh record low of ₹90.19 against the dollar in the previous session. The persistent currency weakness, driven by foreign institutional investor outflows, remained a key concern for market participants.
“On intraday charts, it is holding a lower top pattern, indicating further weakness,” said Shrikant Chouhan, Head Equity Research at Kotak Securities. “We are of the view that the 20-day SMA or 25,900/84,800 would act as a crucial support zone for day traders.”
Devarsh Vakil, Head of Prime Research at HDFC Securities, highlighted the global backdrop, noting that “US equities climbed on Wednesday, with the Nasdaq and S&P 500 posting modest gains, while the Dow Jones Industrial Average posted a more pronounced advance.” The rally followed weak private payrolls data that reinforced expectations of a Federal Reserve rate cut.
However, Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, maintained a cautious stance, stating that “weak PMI data, a sliding rupee, and persistent FII outflows continue to weigh on sentiment, while upcoming RBI and Fed policy decisions and geopolitical developments could add fresh volatility.”
Published on December 4, 2025
