Nifty, Sensex Set for a Cautious Start; IIP Slips to 13-Month Low

Pre-Market Update at 7:40 AM: Indian equity indices are likely to open on a subdued note on Tuesday, December 2, as global market cues remained mixed. GIFT Nifty traded near 26,340, showing a discount of around 20 points to the previous close of Nifty futures and signalling a cautious start for the domestic market.

India’s industrial output slowed sharply, with IIP easing to a 13-month low of 0.4 per cent in October, compared to a 3.7 per cent rise in October 2024. On the fiscal front, GST revenues for November 2025 rose 8.9 per cent year-on-year to Rs 14.75 lakh crore, while monthly receipts inched up 0.7 per cent to Rs 1.70 lakh crore. Domestic GST revenue dipped 2.3 per cent month-on-month to Rs 1.24 lakh crore, but GST from imports increased 10.2 per cent to Rs 45,976 crore. Net GST collections came in at Rs 1.52 lakh crore, up 1.3 per cent month-on-month and 7.3 per cent year-on-year, with refunds declining 3.5 per cent to Rs 18,196 crore.

Asian markets traded mostly higher in early hours, while US markets closed lower overnight as rising Treasury yields weighed on equities. On Monday, FIIs were net sellers, offloading equities worth Rs 1,171.31 crore, whereas DIIs continued their strong buying streak for the 27th straight session, investing Rs 2,558.93 crore.

Domestic markets closed marginally lower on December 1 as concerns over foreign outflows overshadowed robust GDP data. The Nifty 50 slipped 0.1 per cent to 26,175.75, while the Sensex declined 0.08 per cent to 85,641.90, marking a second day of losses after touching fresh highs. The Bank Nifty briefly crossed the 60,000 mark for the first time before easing. The rupee weakened to a record low of 89.53 amid continued FPI withdrawals and uncertainty around the India-US trade agreement.

The automobile sector emerged as a key outperformer, with the Nifty Auto index gaining 0.79 per cent to an all-time high of 28,075.65. Strong monthly sales lifted sentiment, as 12 of 15 constituents advanced. TVS Motor rallied after reporting a 30 per cent jump in November volumes driven by robust exports. Maruti Suzuki rose on a 21 per cent surge in sales supported by Tax-related demand, while Tata Motors and Hyundai also posted healthy growth of 25.6 per cent and 9 per cent, respectively, helping the index deliver a 22 per cent gain year-to-date versus the Nifty 50’s 10 per cent rise.

On Wall Street, US indices fell on Monday as higher Treasury yields pressured sentiment. The Dow Jones Industrial Average dropped 427.09 points (0.90 per cent) to 47,289.33. The S&P 500 slipped 36.46 points (0.53 per cent) to 6,812.63, while the Nasdaq Composite declined 89.76 points (0.38 per cent) to 23,275.92. The US manufacturing sector stayed in contraction for the ninth straight month, with the ISM manufacturing PMI easing to 48.2 from 48.7 in October.

In the cryptocurrency market, nearly USD 1 billion in leveraged positions were liquidated, triggering a broad selloff. Bitcoin fell 0.78 per cent to USD 86,715, Ether slipped 1.56 per cent to USD 2,803, and Tether edged down 0.01 per cent to USD 0.999.

Precious metals retreated as traders booked profits after a recent rally. Spot gold dipped 0.2 per cent to USD 4,222.93 per ounce, while US gold futures for December fell 0.4 per cent to USD 4,256.30 per ounce. Silver declined 1 per cent to USD 57.40 per ounce. Meanwhile, the US dollar remained soft, with the dollar index easing to 99.408.

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Disclaimer: The article is for informational purposes only and not investment advice.