Sensex Extends Losing Streak for 4th Session; Nifty Closes Below 26,000, PSU Bank Index Falls Over 3%

Market Update at 3:45 PM: Indian equity markets ended lower on Wednesday, December 3, as profit-booking near record highs continued for the fourth straight session. The benchmark Nifty 50 slipped by 47.10 points, or 0.18 per cent, to close at 25,985.10, falling below the 26,000 mark. The Sensex also declined by 31.46 points, or 0.04 per cent, settling at 85,106.81. This extended the downtrend that began after both indices touched all-time highs on Monday. Meanwhile, India VIX remained stable, indicating steady market volatility.

The rupee weakened further during the session, breaching the Rs 90 per USD level to hit a record low. Currency pressure added to the cautious sentiment across equity markets.

Among sectoral indices, 5 out of 11 ended in positive territory. However, state-owned Banks dragged the market, with the Nifty PSU Bank index slipping more than 3 per cent. The decline came after the government clarified that there were no merger or disinvestment plans for public sector banks. The index had previously surged 26 per cent between September and November. Government data also indicated that there is no proposal to raise the FDI limit in state-owned lenders to 49 per cent.

Broader markets faced sharper selling pressure, with the Nifty Midcap 100 and Nifty Smallcap 100 both closing in negative territory, reflecting widespread weakness beyond frontline indices.

Market Update at 12:15 PM: Indian stock markets extended their decline for a third straight session on Wednesday, reflecting continued weakness across benchmark indices. The BSE Sensex dropped 286 points, or 0.34 per cent, to settle at 84,852. The Nifty50 also fell sharply, losing 113 points, or 0.43 per cent, to end at 25,920.

The majority of the 30 Sensex constituents traded in negative territory. Key laggards included Hindustan Unilever, Titan, Tata Motors PV, NTPC, BEL, Trent, Bajaj Finserv, Kotak Mahindra Bank, Ultratech Cement, Maruti Suzuki, Larsen & Toubro, Power Grid Corporation, and ITC. Persistent selling pressure across these heavyweights contributed to the overall market weakness.

On the positive side, select Large-Cap counters helped cushion deeper losses. TCS, Infosys, Eternal, Reliance Industries, HCL Technologies, Axis Bank, Tech Mahindra, and Adani Ports managed to stay in the green, lending some support to the benchmarks.

Broader markets also mirrored the cautious sentiment. The Nifty MidCap index slipped 0.22 per cent, while the Nifty SmallCap index declined 0.55 per cent, indicating wider market softness beyond frontline indices.

Among major sectoral movers, the Nifty IT index continued to hold firm, supported by the Indian Rupee breaching the 90-per-USD mark. A weaker rupee typically benefits IT and other export-oriented companies, as they earn a significant portion of their revenue in USD while most operational costs remain rupee-denominated.

On the other hand, the Nifty PSU Bank index saw a sharp fall of nearly 3 per cent, emerging as the worst-performing sector of the day. The Nifty Auto index also declined over 1 per cent, reflecting broad-based pressure across cyclical sectors.

Market Update at 10:10 AM: India’s equity markets opened on a flat note on Wednesday, as profit-taking continued for the fourth consecutive session following record highs.

The Nifty 50 fell 0.07 per cent to 26,014.85, while the Sensex shed 0.02 per cent to 85,120.50, as of 9:22 a.m. IST. The Indian rupee slipped further, hitting another record low against the US dollar.

Both the Nifty and Sensex have declined about 0.7 per cent over the last three sessions since reaching 14-month peaks last week. The recent rally was driven by improving corporate earnings, stable economic growth, and supportive fiscal and monetary policies.

At the open, nine of the 16 major sectors recorded losses. Meanwhile, the broader Small-Cap nd Mid-Cap indices remained largely flat, showing limited market breadth.

Investors remain cautious amid profit-booking, while keeping an eye on global cues and domestic macroeconomic developments.

Pre-Market Update at 7:40 AM: Indian equity markets are poised for a subdued opening on Wednesday, December 3, even as global cues remain supportive. GIFT Nifty traded near 26,207, showing a marginal premium of just 1 point over the previous Nifty futures close, signalling a muted start for the domestic indices. Despite gains in Asian and US markets, investor sentiment in India remains cautious due to high valuations, delays in the Indo–US trade deal, and persistent weakness in the rupee.

Asian markets opened higher in early trade, supported by optimism around a potential US Federal Reserve interest rate cut. Overnight, Wall Street extended its positive momentum, led mainly by technology stocks, marking its sixth rise in the last seven sessions.

Institutional flows reflected continued divergence. On Tuesday, December 2, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 3,642.30 crore. Domestic Institutional Investors (DIIs) maintained their buying streak for the 28th straight session, purchasing stocks worth Rs 4,645.94 crore.

Indian markets continued their downward trend for the third consecutive session on Tuesday. The Nifty 50 fell 0.55 per cent to close at 26,032.20, slipping below its 20-DEMA. The Sensex declined 503.63 points or 0.59 per cent to settle at 85,138.27. Financial stocks led the correction, with the Nifty Financial Services index dropping 0.9 per cent as HDFC Bank and ICICI Bank slid over 1 per cent ahead of the upcoming weightage revision in the Nifty Bank index. Broader indices also weakened amid worries over rupee depreciation, persistent foreign outflows, and uncertainty ahead of the RBI policy announcement.

On Wall Street, the Dow Jones Industrial Average climbed 185.13 points or 0.39 per cent to 47,474.46. The S&P 500 added 16.74 points or 0.25 per cent to 6,829.37, while the Nasdaq Composite advanced 137.75 points or 0.59 per cent to 23,413.67. Major tech stocks showed mixed performance. Apple gained 1.09 per cent, Nvidia rose 0.86 per cent, and Microsoft added 0.67 per cent, while AMD dropped 2.06 per cent and Tesla slipped 0.21 per cent. Intel surged 8.65 per cent, and Boeing rallied 10.15 per cent.

On the geopolitical front, Russia and the US reportedly held constructive talks aimed at resolving the Ukraine conflict. According to Yuri Ushakov, adviser to President Vladimir Putin, the discussions were held in the Kremlin with US representatives, including Steve Witkoff and Jared Kushner, to explore potential peace terms.

Japan’s services sector continued its steady improvement, with the S&P Global final Services PMI rising to 53.2 in November from 53.1 in October, indicating sustained expansion.

Gold prices remained largely stable after a 1 per cent drop in the previous session. Spot gold traded near USD 4,207.43 per ounce, while US December gold futures edged up 0.5 per cent to USD 4,239.50 per ounce.

Oil prices were almost unchanged as investors weighed possible outcomes of the Russia–Ukraine peace dialogue. Brent crude inched up 0.02 per cent to USD 62.47 per barrel, while WTI crude added 0.02 per cent to USD 58.65 per barrel.

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

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