Daily Finance Pulse India - 04 December 2025
Indian stock market set for range-bound opening on December 4, 2025, as Nifty50 and Sensex ended flat on Wednesday following weak global cues and continued rupee depreciation concerns. Markets remain supported by domestic institutional investor buying, though foreign portfolio investor outflows persist. Key watch: US economic data for Fed rate cut signals and potential India-US trade deal details expected this month.
1/10
Nifty50 and Sensex End Flat: Technical Correction Amid Rupee Weakness
December 3, 2025 · Nifty50 closed near 26,010.65, down 22 points (0.083%), while BSE Sensex ended at 85,116.06, down 22 points (0.026%), extending losses to a fourth consecutive session. The correction of approximately 300 points from record highs is driven by Bank Nifty rejig reducing weights of HDFC Bank and ICICI Bank, coupled with continued rupee depreciation concerns as the RBI refrains from intervention.
Impact: Investors should remain in high-quality large and midcap growth stocks while avoiding overvalued smallcaps during this period of uncertainty.
2/10
Rupee Depreciation Emerges as Primary Market Concern: FII Selling Persists
December 3, 2025 · Continued rupee depreciation and fears of further weakness are forcing foreign portfolio investors to sell despite improving corporate earnings fundamentals and strong GDP growth rebound. The rupee weakness is expected to reverse when the India-US trade deal materializes, likely this month, with tariff details becoming critical.
Impact: Trade deal announcement and tariff structure details could provide significant relief to FII selling pressure and support market recovery.
3/10
FII Net Sales of Rs 3,642 Crore Offset by DII Purchases of Rs 4,646 Crore
December 3, 2025 · Foreign portfolio investors recorded net sales of Rs 3,642 crore on Tuesday, while domestic institutional investors registered net purchases of Rs 4,646 crore, providing cushion against external selling pressure and supporting market stability.
Impact: Steady domestic institutional investor support is likely to cushion market dips and limit downside, though FII outflows may cap upside momentum in near term.
4/10
Nifty50 Major Resistance at 26,325: Profit Booking Expected on Bounces
December 3, 2025 · Technical analysts identify major resistance for Nifty50 at 26,325 level. As long as the index remains below this level, any bounce should be used for profit booking by traders, indicating limited upside potential in near term.
Impact: Traders should use any rally toward 26,325 as an opportunity to book profits rather than chase further gains.
5/10
December 4 Market Outlook: Range-Bound Opening Expected with Muted Sentiment
December 3, 2025 · With Gift Nifty showing only marginal gains, domestic markets are expected to open on a muted note on December 4, with trade likely to remain range-bound unless fresh catalysts emerge. Low India VIX levels suggest restrained volatility, though continued FII outflows may limit upside moves.
Impact: Investors should prepare for sideways trading with limited directional bias unless significant news catalysts emerge during the session.
6/10
US Equities Close Higher: Sixth Positive Close in Seven Sessions on Rate Cut Expectations
December 3, 2025 · US stock markets finished higher during quiet trading, marking their sixth positive close in seven sessions. Technology shares led the advance amid strong expectations for Federal Reserve rate cuts next week, providing some support to global sentiment.
Impact: Positive US market momentum could provide mild support to Indian equities, though mixed Asian sentiment may limit spillover gains.
7/10
Asian Stocks Remain Flat: Investors Seek New Market Drivers Amid Crypto Momentum Loss
December 3, 2025 · Asian stock markets remained flat on Wednesday, reflecting similar patterns on Wall Street as investors searched for new market drivers. Cryptocurrency recovery lost momentum, adding to cautious sentiment across the region.
Impact: Lack of clear directional catalysts in Asia may result in continued sideways trading for Indian markets absent domestic triggers.
8/10
Gold Prices Stable Following 1% Previous Decline: Equities and Treasury Yields Weigh on Metal
December 3, 2025 · Gold prices remained flat following a 1% decline in the previous session, as rising equities and stable Treasury yields continued to pressure the precious metal. Traders await crucial US economic indicators for insights on potential Federal Reserve rate reductions later this week.
Impact: Gold's weakness reflects investor confidence in equity markets; any reversal in equity sentiment could provide support to gold prices.
9/10
Indian Market Extends Losing Streak to Fourth Session: Weakness Continues
December 3, 2025 · The Indian market ended weaker on Wednesday, with the Sensex and Nifty edging lower and extending their slide to a fourth consecutive session, reflecting sustained selling pressure and lack of positive catalysts.
Impact: Prolonged weakness suggests market consolidation phase; significant positive catalyst needed to reverse downtrend.
10/10
Banking Stocks BEL and M&M Drop 2% Each: Sectoral Weakness Emerges
December 3, 2025 · Bharat Electronics Limited (BEL) and Mahindra & Mahindra (M&M) each declined 2% during Wednesday's session, reflecting broader weakness in key sectors and contributing to overall market flatness with negative bias.
Impact: Weakness in defensive and automotive sectors suggests rotation out of traditionally stable stocks; sector rotation may continue until market stabilizes.