The modest opening reflected mixed global signals and continued concerns over foreign institutional investor outflows and continued 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 signals and continued concerns over foreign institutional investor outflows and continued rupee weakness, even as expectations of a US Federal Reserve rate cut provided some support.
“From an Indian point of view, the movements in US bond yields and the US dollar will be critical as both will significantly impact the sentiment of foreign investors,” said Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth technology company. “With the RBI policy decision around the corner, volatility is likely to remain high, keeping traders in the open market cautious.”
Information technology stocks emerged as the best performers this morning, with TCS leading the way, rising 1.48 per cent to ₹3,227.10. HCL Technologies rose 1.25 per cent to ₹1,661.00, while Wipro rose 1.05 per cent to ₹257.36 and Tech Mahindra rose 1.01 per cent to ₹1,557.20. Eicher Motors was also among the top gainers, rising 0.99 percent to ₹7,151.50.
On the losing side, Max Healthcare led the decliners, down 1.34 per cent to ₹1,071.40, followed by Eternal, which fell 1.28 per cent to ₹293.95. IndiGo fell 0.80 per cent to ₹5,551.00, Titan Company lost 0.70 per cent to ₹3,790.90 and Power Grid Corporation lost 0.58 per cent to ₹266.90.
“The market is currently in the middle of two opposing forces: one negative and the other positive,” says Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. “The sharp depreciation of the rupee by more than 5 percent and the RBI’s policy of not intervening to support the currency are negative from the FII’s perspective.”
The rupee continued its downward trajectory and marked its longest losing streak since July 2025 after closing at a fresh record low of ₹90.19 against the dollar in the previous session. The continued weakness of the currency, caused by the outflow of foreign institutional investors, remained a major concern for market participants.
“On intraday charts, the index is showing a lower top pattern, indicating further weakness,” said Shrikant Chouhan, head of equity research at Kotak Securities. “We believe that the 20-day SMA or 25,900/84,800 would act as a crucial support zone for day traders.”
Highlighting the global backdrop, Devarsh Vakil, head of Prime Research at HDFC Securities, noted that “US stocks rose on Wednesday, with the Nasdaq and S&P 500 posting modest gains, while the Dow Jones Industrial Average made more pronounced progress.” The rally followed weak private payroll data that reinforced expectations of a Federal Reserve rate cut.
However, Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, maintained a cautious stance and said that “weak PMI data, a weakening rupee and continued FII outflows continue to weigh on sentiment, while upcoming RBI and Fed policy decisions and geopolitical developments could bring fresh volatility.”
Published on December 4, 2025
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