Market Indices and Overall Trends

The BSE Sensex concluded the session at 85,265.32, registering a gain of 158.51 points or 0.19%. The Nifty 50 index traded at 26,033.75, up by 0.18%, after opening flat with a slight dip of 4.15 points. Notably, the Nifty remains 1.12% below its 52-week high of 26,325.80, indicating some room for upward movement. The index is trading above its 50-day moving average (DMA), which itself is positioned above the 200 DMA, signalling a generally positive medium-term trend.

Large-cap stocks were the primary drivers of the market's upward momentum, with the Nifty Next 50 index gaining 0.23%. In contrast, mid-cap and small-cap segments showed some pressure, with the BSE Midcap index falling by 0.19% and the Smallcap index declining by 0.32%. The BSE100 large-cap index rose by 0.21%, underscoring the preference for established companies amid current market conditions.

Sectoral Performance: Winners and Losers

Out of 37 sectors tracked, 22 advanced while 15 declined, reflecting a broadly mixed market environment. The Information Technology sector (NIFTYIT) emerged as the top gainer, rising by 1.41%, supported by strong performances from key IT stocks. Conversely, the Media sector (NIFTYMEDIA) was the top laggard, falling by 1.45%, weighed down by profit booking and sector-specific challenges.

Top Gainers and Losers Across Market Caps

Among the BSE500 stocks, India Cements led the gainers with a robust 10.00% rise, followed by Hindustan Copper at 7.79% and Kirloskar Oil with a 6.96% increase. On the downside, Hitachi Energy declined by 7.96%, Kaynes Technology by 6.17%, and Wockhardt by 5.92%, marking them as the top losers in the broad market.

Focusing on market capitalisation segments, Coforge was the top large-cap gainer, advancing 2.88%, while Suzlon Energy was the largest large-cap decliner, down 3.31%. Hexaware Technologies led the mid-cap gainers with a 4.99% rise, whereas Hitachi Energy was the biggest mid-cap loser, falling 7.96%. In the small-cap space, SMC Global Securities surged by an impressive 19.85%, while Lotus Chocolate declined by 8.72%.

Market Breadth and Investor Activity

The advance-decline ratio across the BSE500 stood at 227 advances against 271 declines, resulting in a ratio of 0.84x. This indicates a broader market tilt towards declines despite the headline indices moving higher, suggesting selective buying interest concentrated in certain sectors and stocks.

Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) activity data was not explicitly detailed for the day; however, the mixed market breadth and sectoral divergence imply cautious positioning by these participants amid ongoing global economic concerns.

Global Cues and Their Impact

Global markets showed mixed signals today, with cautious investor sentiment prevailing amid ongoing concerns over inflation and monetary policy tightening in major economies. Asian markets were largely subdued, while European indices showed modest gains. These global cues influenced the Indian market's cautious advance, as investors balanced domestic corporate earnings prospects with external uncertainties.

Technical Indicators and Market Outlook

The Nifty's position above its 50 DMA, which itself is above the 200 DMA, suggests a constructive technical setup in the medium term. However, the index remains slightly below its 52-week high, indicating that resistance levels may cap near-term gains. The divergence between large-cap strength and mid/small-cap weakness points to a market environment where investors are favouring stability over riskier bets.

Sector rotation was evident, with Information Technology stocks attracting buying interest, while Media and certain industrial stocks faced selling pressure. This rotation may reflect shifting investor preferences as they assess earnings prospects and macroeconomic developments.

Investor Takeaways

Investors should note the selective nature of the current market rally, with large caps and IT stocks leading gains while mid and small caps face pressure. The advance-decline ratio below 1 signals that broader market participation remains limited. Caution is warranted given global economic uncertainties and sector-specific headwinds.

Monitoring the Nifty’s ability to sustain levels above its moving averages will be crucial for assessing the durability of the current uptrend. Additionally, tracking foreign institutional flows and sector rotation patterns can provide insights into evolving market dynamics.

Conclusion

On 4 December 2025, the Indian equity markets demonstrated resilience with modest gains in benchmark indices despite mixed sectoral performances and uneven breadth. Large-cap stocks and the IT sector provided support, while mid and small caps showed signs of hesitation. Global economic factors continue to influence market sentiment, underscoring the importance of a balanced and well-informed investment approach.

Get 1 year of Weekly Picks FREE when you subscribe to MojoOne. Offer ends soon. Start Saving Now →