Sensex and Nifty Performance Overview

The Sensex opened with a marginal gain of 12.37 points but soon reversed course, falling by as much as 304.68 points during intraday trade before settling at 84,845.96. The index continues to trade above its 50-day moving average (DMA), which itself remains above the 200 DMA, signalling that the medium-term trend retains some underlying strength despite the recent pullback.

The broader Nifty index mirrored this trend, with a modest decline reflecting cautious investor sentiment amid mixed global cues and sectoral divergences. Large-cap stocks largely traded flat, indicating a lack of broad enthusiasm among blue-chip names.

Sectoral Trends: Divergence Between Winners and Losers

Out of 38 sectors tracked, only five advanced while 33 sectors declined, underscoring a broad-based weakness across the market. The NIFTY PSU Bank sector emerged as the top laggard, falling by 2.37%, pressured by concerns over asset quality and earnings outlook. Conversely, the BSE Information Technology sector was the top gainer, rising by 0.72%, supported by select IT stocks showing strength amid steady global demand for technology services.

Mid-cap and small-cap segments underperformed the large caps, with the BSE Midcap index declining by 1.09% and the BSE Smallcap index by 0.69%. The BSE 100 index also fell by 0.54%, reflecting the cautious stance of investors towards broader market participation.

Top Gainers and Losers Across Market Capitalisations

Among large caps, Wipro stood out as the top gainer, advancing by 2.16%. The stock’s performance was buoyed by positive investor interest in its digital transformation services and steady order inflows. In the mid-cap space, Tata Communications also gained 2.16%, reflecting optimism around its expanding global network infrastructure and enterprise solutions business.

Small-cap stocks saw more pronounced moves, with Route Mobile surging by 9.94%, driven by strong quarterly results and upbeat guidance. This rally highlights the potential for select small caps to outperform amid broader market caution.

On the downside, Punjab National Bank led losses among large caps, declining 4.10%, weighed down by concerns over non-performing assets and regulatory pressures. Indian Bank was the top mid-cap loser, falling 5.51%, while Nectar Lifesciences declined 5.16% among small caps, reflecting profit booking and sector-specific challenges.

Market Breadth and Broader Indices

The advance-decline ratio across the BSE 500 index was notably weak, with only 93 advances against 406 declines, resulting in a ratio of 0.23x. This indicates a market dominated by selling pressure, with a limited number of stocks able to sustain gains. The BSE 500 top gainers included Sonata Software (4.93%), Doms Industries (4.29%), and Chalet Hotels (3.32%), while the top losers were Indian Bank (-5.51%), Angel One (-4.31%), and Punjab National Bank (-4.10%).

Foreign Institutional and Domestic Investor Activity

Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) activity remained subdued, reflecting the cautious market mood. While detailed net inflow or outflow figures were not disclosed, the subdued performance of large caps and the broad market weakness suggest limited buying interest from institutional participants. This restrained activity aligns with global uncertainties and mixed economic data from key markets.

Global Cues and Their Impact on Indian Markets

Global markets exhibited mixed trends, with US and European indices showing modest gains amid ongoing economic data releases and central bank commentary. However, concerns over inflation persistence and geopolitical tensions continued to weigh on investor sentiment. Asian markets were largely subdued, with the Nikkei and Hang Seng indices trading lower, which influenced cautious trading in Indian equities.

The Indian rupee remained relatively stable against the US dollar, providing some relief to exporters and IT companies. Crude oil prices showed minor fluctuations, which kept energy stocks range-bound. Overall, global cues contributed to a risk-off sentiment, limiting upside momentum in domestic markets.

Outlook and Investor Considerations

With the Sensex trading above its 50 DMA and the 50 DMA positioned above the 200 DMA, the medium-term technical setup retains a constructive bias. However, the current pullback and weak market breadth indicate that investors are adopting a cautious stance amid sectoral divergences and global uncertainties.

Information technology and select communication stocks like Wipro and Tata Communications have demonstrated relative strength, suggesting that investors may favour sectors with stable earnings visibility and global exposure. Conversely, PSU banks and certain financials remain under pressure due to asset quality concerns and regulatory scrutiny.

Market participants may look for confirmation of sustained buying interest in large caps and broader indices before committing to fresh positions. Monitoring foreign institutional flows and global developments will be crucial in assessing near-term market direction.

Summary

The Indian equity market on 3 December 2025 experienced a modest decline with the Sensex closing at 84,845.96, down 0.34%. Sectoral performance was uneven, with IT and communications sectors showing resilience while PSU banks faced selling pressure. Large caps traded largely flat, with Wipro and Tata Communications among the top gainers, while Punjab National Bank and Indian Bank were notable laggards. Market breadth was weak, reflecting a cautious investor mood amid mixed global cues and subdued institutional activity. The technical setup suggests underlying strength, but investors remain watchful for clearer directional signals.

Limited Time Only! Upgrade now and get 1 Year of Stock of the week worth Rs. 14,999 for FREE. Don't miss out on this exclusive offer. Claim Your Free Year →