Daily Finance Pulse India - 03 December 2025
Indian equity markets closed lower on December 2, 2025, with Nifty 50 ending at 26,032 down 0.55% and Sensex at 85,641.90 down 0.08%, as profit-booking and FII outflows weighed on sentiment despite strong Q2 GDP data of 8.2%. Banking stocks led declines amid RBI policy anticipation, while rupee hit record lows at 89.85. Markets are open for regular trading on December 3, 2025.
1/10
Nifty Falls Below 26,050 as Profit-Booking Accelerates: Banking Stocks Lead Selloff
December 2, 2025 · Nifty 50 closed at 26,032 down 0.55% while Sensex ended at 85,641.90 down 0.08% after touching lifetime highs of 26,325.80 and 86,159 respectively. ICICI Bank and HDFC Bank emerged as top losers as investors trimmed positions ahead of RBI's Friday policy decision. Bank Nifty formed a bearish candlestick near its 10-day SMA, reflecting selling pressure at higher levels.
Impact: Investors should watch the 26,140-26,160 resistance zone; break above could trigger rally to 26,300, while support lies at 25,980-25,950 (20-day EMA).
2/10
Rupee Hits Record Low at 89.85 as FII Outflows Persist Amid Trade Uncertainty
December 2, 2025 · Indian rupee weakened to a fresh record low of 89.85 against the US dollar, driven by sustained foreign institutional investor outflows and absence of progress on US-India trade agreement negotiations. RBI intervened to steady the currency near the psychological threshold. FIIs sold equities worth Rs 1,171 crore on December 1, while DIIs bought Rs 2,559 crore.
Impact: Rupee weakness increases import costs and inflation concerns; watch for RBI's response at Friday's policy meeting.
3/10
FII Outflows Reach Rs 11,592 Crore in November Despite Strong Domestic Fundamentals
December 2, 2025 · Foreign institutional investors reversed October's net buying by selling equities worth Rs 11,592 crore in November, highlighting investor caution despite India's robust 8.2% Q2 GDP growth and stable inflation. Since January 2025, FPIs have withdrawn Rs 1.48 lakh crore from Indian equities, making India among the worst performers in a global bull run.
Impact: Persistent FII outflows may constrain market rallies; DII support remains crucial to limit downside.
4/10
Nifty Small Cap 100 Breaches 200-Day EMA as Broader Market Breadth Deteriorates
December 2, 2025 · Nifty Small Cap 100 index breached its 200-day exponential moving average, signaling fragile broader market structure. Market breadth deteriorated sharply with 338 out of Nifty 500 constituents ending in red, indicating lack of widespread participation despite benchmark index hovering near all-time highs. This persistent weakness raises vulnerability for bulls.
Impact: Selective stock-picking becomes critical; broader market weakness suggests caution despite index resilience.
5/10
Pharma and IT Stocks Provide Resilience as Sectors Split on December 2
December 2, 2025 · Nifty Pharma, IT, and Healthcare indices closed in green while Nifty Media, Chemicals, and Private Bank indices witnessed sharp declines. Asian Paints and Dr. Reddy's emerged as top performers offering resilience, while Indigo and ICICI Bank led losers' pack. Metal, oil & gas, and consumer durables indices fell 0.5% each.
Impact: Defensive sectors like pharma and IT offer shelter; avoid overexposure to financial and commodity-linked stocks.
6/10
Nomura Forecasts Nifty 50 at 29,300 by End-2026 on Cyclical Momentum
December 2, 2025 · Nomura projects Nifty 50 to reach 29,300 by end of 2026, approximately 12% higher than current levels, citing cyclical economic momentum and improving earnings outlook. This forecast provides medium-term optimism despite near-term profit-booking pressures and near-term headwinds from FII outflows.
Impact: Long-term investors should view current weakness as buying opportunity; target 29,300 suggests 12% upside potential.
7/10
RBI Rate Cut Expectations Fade as Strong GDP Data Keeps Policy Hawkish
December 2, 2025 · Fading expectations of Reserve Bank of India rate cut due to strong 8.2% Q2 GDP growth are keeping investors cautious ahead of Friday's policy decision. Market participants are reassessing rate-cut probability, with some now expecting RBI to maintain status quo or signal hawkish stance given inflation concerns and rupee weakness.
Impact: Rate pause would support rupee but may limit equity upside; watch RBI's forward guidance closely.
8/10
Buy Recommendations: Ashok Leyland, HCL Tech, Bank of Baroda Show Positive Technicals
December 2, 2025 · Mirae Asset Sharekhan recommends buying Ashok Leyland (Rs 160-161, target Rs 175), HCL Tech (Rs 1,641-1,642, target Rs 1,780), and Bank of Baroda (Rs 296-297, target Rs 325) based on bullish technical formations and positive momentum indicators. All three stocks show higher tops and higher bottoms patterns with consolidation breakout potential.
Impact: Selective buying opportunities in auto, IT, and banking sectors despite broader market weakness.
9/10
India VIX Falls 3.46% to 11.23 as Volatility Moderates on Cautious Trading
December 2, 2025 · India VIX declined 3.46% to 11.23, indicating moderating volatility despite market weakness. Lower volatility suggests investors are not panicking despite FII outflows and profit-booking, with consistent DII buying helping contain intraday swings. Volatility likely to remain range-bound unless fresh triggers emerge.
Impact: Moderate volatility environment favors tactical traders; options premiums may compress further.
10/10
Range-Bound Opening Expected on December 3 as Markets Digest Policy Uncertainty
December 2, 2025 · GIFT Nifty suggests flat opening for December 3, with domestic markets expected to trade within tight range unless fresh triggers or corporate updates influence sentiment. Positive closes across European indices could provide underlying support to index-heavy sectors, especially banking and IT, potentially helping stabilize markets despite persistent FII selling pressure.
Impact: December 3 trading likely cautious; watch for RBI policy signals and global market cues.