Taking Stock: Sensex, Nifty flat amid final-hour buying; IT shines as rupee at fresh record low

The Indian benchmark indices ended with marginal losses and extended the losing streak for the fourth consecutive session on December 3 on falling rupee and selling across the sectors barring IT and private banks.

Despite positive global cues, the market started on a flat note but as the day progress bears took the charged and dragged the Nifty below 25900, however, the final hour buying heled to regain most of the losses to finish off day’s low.

At close, the Sensex was down 31.46 points or 0.04 percent at 85,106.81, and the Nifty was down 46.20 points or 0.18 percent at 25,986.00. BSE Midcap index shed 1% and smallcap index declined 0.4%.

The Indian rupee continued hitting fresh record low on the fourth consecutive session, crossing 90 mark for the first time and touched new record low of 90.29 per dollar, intraday. However, it closed 32 paise lower at 90.19 per dollar against Tuesday's close of 89.87.

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On the sectoral front, IT, media, private bank, Telecom rose 0.2-0.6 percent, while PSU Bank shed 3%, and oil & gas, metal, power, PSU, capital goods, consumer durables down 0.5-1.5%.

Max Healthcare, Shriram Finance, Bharat Electronics, Interglobe Aviation, Tata Consumer were among major losers on the Nifty, while gainers were Wipro, Hindalco Industries, TCS, Axis Bank and ICICI Bank.

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In stock-specific action, Max Estates shares gained on launching residential project in Gurugram, Bharat Forge shares slipped 1% post Class 8 Truck orders dip, Angel One shares shed 5% as gross client acquisition down 17% YoY in November, RPP Infra share price added 2% bags order worth Rs 25 crore for a road project in Tamil Nadu, Gujarat Pipavav share added 1.2% on signing MoU with NYK India to enhance RoRo infrastructure at Pipavav Port.

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More than 280 stocks hit 52-week low, including KNR Construction, Colgate Palmolive, Power Finance, SJVN, CG Consumer, NCC, Page Industries, Chambal Fertiliers, Trent, Mahanagar Gas, Praj Industries, BASF, Clean Science, Deepak Nitrite, Cohance Life, Bata India, PCBL Chemical, among others. Click to View More

More than 80 stocks hit 52-week high, including Asian Paints, Vedanta, eClerx Services, Can Fin Homes, Jamna Auto, Cupid, Jindal Poly, Hitachi Energy, among others. Click to View More

Outlook for December 4

Ajit Mishra – SVP, Research, Religare Broking

Markets witnessed a volatile session and ended marginally lower, extending the ongoing consolidation phase. After a flat start, the Nifty drifted gradually lower in early trade and then remained range-bound for most of the session. A late rebound in the last half hour helped trim losses, and the index eventually settled at 25,986. Sectorally, most indices traded under pressure, with auto, energy and FMCG leading the decline, while resilience in IT and a recovery in private banks helped limit the downside. The broader markets were comparatively weaker, with the midcap and smallcap indices declining in the range of 0.71%–0.91%.

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. In addition, caution ahead of the MPC meeting and mixed global cues added to the subdued mood.

Although the Nifty slipped below the crucial short-term support of the 20-DEMA around 25950 level during the session, the closing-hour recovery helped it reclaim this level. The rebound in private banking heavyweights and continued strength in IT were encouraging, but their sustainability will be the key for any meaningful recovery; otherwise, the corrective phase may extend. Meanwhile, participants should manage position sizes prudently and maintain a selective approach—favoring IT and pharma for long trades while considering opportunities in rate-sensitive pockets on dips.

Vinod Nair, Head of Research, Geojit Investments

Indian equities continued to consolidate as the rupee slid to a record low, weighed down by FII outflows and ongoing trade uncertainties. Industrial activity moderated in November, with the manufacturing PMI indicating slow new orders, softer export demand, and a spike in the trade deficit.

Global markets were mixed as investors are assessing ahead the Fed & ECB monetary policy and currency volatility, while sentiment remained cautious after a jump in Japanese bond yields on expectations of BOJ tightening and increased government spending.

The RBI’s policy decision this week will be crucial, especially for banks, as rate cut probability has reduced post the strong Q2 GDP data.

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