Nifty, Sensex Snap 4-Day Losing Streak; Nifty IT Gains Over 1%

Market Update at 3:45 PM: Indian equity benchmark indices ended higher on Thursday, December 4, snapping a 4-day losing streak, supported mainly by gains in information technology stocks. IT shares strengthened as the rupee weakened and market participants increased bets on a possible US Federal Reserve rate cut next week.

At the close, the Nifty 50 rose 47.75 points or 0.18 per cent to finish at 26,033.75, reclaiming the 26,000 mark. The BSE Sensex advanced 158.51 points or 0.19 per cent to 85,265.32. Despite the rebound, the Nifty has still lost 0.65 per cent over the last four sessions, while the Sensex has shed 0.5 per cent after both indices touched record highs last week. India VIX remained steady, indicating stable market sentiment.

Investors are now focused on the Reserve Bank of India’s Monetary Policy Committee meeting, with the policy decision due on Friday. With economic growth staying firm and the rupee weakening, markets remain uncertain about whether the central bank will hint at any change in its policy stance.

On the sectoral front, 8 of 11 major indices ended in positive territory. The Nifty IT index led the gains, rising 1.41 per cent as the rupee slipped to a fresh all-time low against the USD amid persistent foreign outflows. The currency’s weakness provided support to IT exporters, which earn a significant portion of their revenues from the US market.

Broader markets, however, underperformed. The Nifty Midcap 100 and Nifty Smallcap 100 indices both ended in negative territory, indicating continued pressure on mid- and Small-Cap segments.

Market Update at 12:30 PM: Benchmark indices held steady gains in intra-day trade on Thursday, supported by sustained buying in major heavyweights such as Reliance Industries, HDFC Bank and key IT stocks. Investor sentiment improved as the Indian Rupee touched a record low of Rs 90.56 against the USD, triggering renewed interest in the technology pack.

By 12 PM, the BSE Sensex stood at 85,212.81, up 106 points or 0.12 per cent, while the NSE Nifty50 was quoting at 26,023.9, higher by 37.9 points or 0.15 per cent. Leading contributors to the recovery included TCS, Asian Paints, Tech Mahindra, HCL Tech, Tata Motors PV, BEL, Bajaj Finserv, Reliance Industries, M&M, Bajaj Finance, Maruti Suzuki and Infosys, which gained up to 1.13 per cent.

In the broader market, the NSE Nifty MidCap index advanced 0.30 per cent, whereas the Nifty SmallCap index inched up 0.10 per cent. Sectorally, the Nifty IT and Auto indices gained 0.6 per cent each, followed by the Nifty Metal index, which rose 0.5 per cent. The Nifty FMCG index added 0.14 per cent. On the downside, the Nifty Realty index slipped 0.18 per cent.

Market Update at 10:10 AM: India’s equity benchmarks edged lower on Thursday as continued profit-taking near last week’s record highs and persistent foreign outflows weighed on sentiment. The Nifty fell 0.12 per cent to 25,954.75, while the Sensex slipped 0.11 per cent to 85,019.14 as of 9:20 a.m. IST.

Market breadth weakened, with 12 of the 16 major sectors ending in the red. Broader indices were muted, as the Smallcap and Midcap traded flat, reflecting cautious investor mood.

The Indian rupee dropped to a new all-time low against the US dollar, pressured by sustained foreign portfolio outflows. FPIs sold Indian equities worth Rs 32.07 billion (USD 355.7 million) on Wednesday, marking their fifth straight session of selling.

After touching fresh record highs last week for the first time in 14 months, the Nifty has declined 0.9 per cent over the last four sessions, while the Sensex has lost 0.7 per cent, signalling short-term profit-booking across the market.

Pre-Market Update at 7:40 AM: Indian equity benchmarks are expected to open lower on Thursday, December 4, as mixed global cues and a sharp discount in GIFT Nifty point toward a weak start. GIFT Nifty traded near the 26,080 mark, showing a discount of around 54 points to Nifty futures, indicating early pressure on domestic indices.

Asian markets traded mixed in early hours, while US markets ended higher overnight on rising expectations of an interest rate cut by the US Federal Reserve next week. Market sentiment in India may also be influenced by Russian President Vladimir Putin’s two-day visit beginning today, with investors watching for any major Defence agreements following discussions with Prime Minister Narendra Modi.

Institutional activity on Wednesday showed Foreign Institutional Investors (FIIs) turning net sellers as they offloaded equities worth Rs 3,206.92 crore. Domestic Institutional Investors (DIIs), however, maintained strong buying momentum for the 29th consecutive session, purchasing equities worth Rs 4,730.41 crore.

On Wednesday, Indian markets extended their losing streak for a fourth session. The Nifty 50 slipped below the 26,000 mark to close at 25,985.10, while the Sensex ended marginally lower at 85,106.81. Broader indices, including the Nifty Midcap 100 and Nifty Smallcap 100, also closed in the red, reflecting overall weakness. The rupee fell to a record low against the US dollar, and the Nifty PSU Bank index dropped over 3 per cent after the government clarified that no merger, disinvestment or FDI-limit hike was being considered for public-sector banks.

Among stocks, Angel One declined more than 5 per cent on weaker monthly metrics, while RPP Infra gained after securing new orders worth Rs 25.99 crore. The Nifty IT index emerged as the top sectoral performer, rising 0.76 per cent, supported by HDFC Bank, ICICI Bank and Infosys. In contrast, State Bank of India, Mahindra & Mahindra and Reliance Industries dragged the indices lower. Market breadth remained weak, with over 2,000 NSE-listed stocks declining and several hitting 52-week lows.

In global markets, Wall Street closed higher on Wednesday as multiple economic indicators strengthened the case for a Federal Reserve rate cut. The Dow Jones gained 408.44 points (0.86 per cent) to close at 47,882.90. The S&P 500 added 20.35 points (0.30 per cent) to reach 6,849.72, while the Nasdaq edged up 40.42 points (0.17 per cent) to end at 23,454.09. Nvidia fell 1.03 per cent, Microsoft declined 2.5 per cent, while AMD rose 1.1 per cent and Tesla surged 4.08 per cent. Marvell Technology rallied 7.9 per cent, Microchip Technology jumped 12.2 per cent and American Eagle Outfitters surged 15.1 per cent.

US private payrolls fell sharply in November, dropping by 32,000 jobs — the steepest decline in more than two and a half years. This followed an upward revision of October’s data to a gain of 47,000 jobs. Analysts had expected a modest rise of 10,000 jobs. Meanwhile, the ISM non-manufacturing PMI remained stable at 52.6 for November, slightly above the forecast of 52.1.

Japanese bond yields continued their upward climb, with the 30-year JGB touching a fresh record of 3.445 per cent. The 10-year yield edged up to 1.905 per cent, the highest since 2007, while the 20-year yield hit 2.94 per cent, a level last seen in 1999. The five-year yield also rose to 1.395 per cent.

The US dollar weakened further, falling to a five-week low as the dollar index dropped 0.4 per cent to 98.878 — its ninth consecutive session of losses. The offshore Chinese yuan remained steady at around 7.056 per USD.

Gold prices edged higher with expectations of US Fed rate cuts gaining traction. Spot gold climbed 0.2 per cent to USD 4,213.38 per ounce, while silver rose 0.1 per cent to USD 58.54 after hitting a record USD 58.98 earlier in the week.

For today, Sammaan Capital will remain on the F&O ban list.

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