“Nifty’s correction of around 300 points from the record high can be seen as a correction driven by technical factors such as the 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 at the moment, which has contributed to the market’s slow slide, is the continued depreciation of the rupee and the fear of further depreciation as the RBI does not intervene to support the rupee.”
The Indian rupee extended its losing streak for the fifth consecutive session on Tuesday, hitting an all-time 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 and hit an all-time low of 89.95 against the US dollar amid risk aversion and strong demand from importers,” said Devarsh Vakil, Head of Prime Research, HDFC Securities. “Continued 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 so far, adding pressure on domestic equities. “While hopes of double rate cuts and optimism around a possible US-India trade deal are supportive, FII outflows, record weak rupee and pressure on banking stocks keep sentiment fragile,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Among sectoral gainers, technology stocks led the list of gainers. Wipro rose 1.45 per cent to ₹253.79, while Tata Consultancy Services rose 1.07 per cent to ₹3,169.40. Dr. Reddy’s Laboratories rose 0.46 per cent to ₹1,281.10, and HDFC Bank rose 0.24 per cent to ₹992.20. Tech Mahindra gained 0.08 per cent to ₹1,538.00.
On the losing side, Max Healthcare fell 2.14 per cent to ₹1,093.60, marking the steepest decline among Nifty voters. Shriram Finance fell 1.87 per cent to ₹827.60, while Coal India fell 1.42 per cent to ₹373.55. Tata Consumer Products fell 1.30 per cent to ₹1,147.10, and Nestle India fell 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 possible rate cut remain a key catalyst, and if materialized, could provide 2 to 3 percent upside potential for domestic equities.”
Market participants now await the Reserve Bank of India’s monetary policy decision and December 5 US payroll data for further direction. “Markets came under sharp pressure on profit bookings at Tuesday’s weekly expiration, with the breadth tilting firmly towards the bears as traders weighed the coming volatility triggers – RBI policy and US payrolls on December 5, Putin’s visit to India, global inflation data and the mid-month Fed-ECB meetings,” 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 mid-cap segments,” said Vijayakumar. “Small caps as a segment are still overvalued and are therefore best avoided.”
Published on December 3, 2025
#Markets #slipping #due #rupee #woes #FII #outflows #Hopes #rate #cuts #bulls #edge