Indian equity markets ended slightly lower on December 3, weighed down by the rupee hitting a fresh record low and continued foreign fund outflows. The BSE Sensex closed at 85,102, down 31.5 points, while the Nifty 50 ended at 25,986, down 46.2 points, snapping short-term gains from the previous session. Market volatility remained elevated, with early selling pressure offset partially by late buying in select sectors.
Broader markets continued to underperform, with the midcap and small-cap indices declining between 0.7% and 0.9%. Sectorally, the market saw widespread weakness. Auto, energy, FMCG, metals, oil & gas and consumer durables were among the top laggards, registering losses in the range of 0.5% to 1.5%. Analysts attributed the decline to concerns over rising import costs triggered by the sliding rupee, as well as cautious positioning ahead of the Reserve Bank of India’s monetary policy decision later this week.
Under the loom of weakness, a few pockets provided some relief. IT stocks such as Wipro and TCS, along with private banking names like Axis Bank, closed in the green, supported by stable earnings outlooks and defensive buying. These gains helped soften what could have been a sharper fall for the benchmarks.
Overall, the market mood stayed cautious. Traders expect near-term movement to remain range-bound, with global cues, rupee stability and the RBI’s commentary likely to dictate direction. Investors are advised to stay selective, particularly in IT and defensives, while maintaining caution in rate-sensitive and high-valuation segments.
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