Sensex and Nifty Trends

The BSE Sensex opened at 85,325.51 and traded lower throughout the day, closing at 85,349.02, reflecting a loss of 292.88 points or 0.34%. The index remains approximately 0.94% below its 52-week high of 86,159.02. Despite the dip, the Sensex continues to trade above its 50-day moving average (DMA), with the 50 DMA positioned above the 200 DMA, signalling a sustained medium-term uptrend.

The Nifty mirrored this trend, with a majority of its sectors showing declines. Market participants remained cautious amid mixed global signals and sector-specific developments.

Sectoral Performance: Winners and Losers

Out of 38 sectors tracked, only 7 advanced while 31 declined, underscoring the cautious mood. The NIFTY PSU Bank sector emerged as the top gainer, rising by 1.05%, buoyed by select banking stocks showing resilience. Conversely, the NIFTY Media sector was the top laggard, falling by 0.71%, pressured by subdued advertising spends and cautious outlooks.

Mid-cap stocks led the market today, with the BSE Mid Cap index gaining 0.08%, while small caps traded flat overall, registering a marginal fall of 0.21%. The BSE 100 index also declined by 0.23%, reflecting the broader market weakness.

Top Gainers and Losers Across Market Caps

Among large caps, Canara Bank stood out as the top gainer, advancing by 2.03%. The stock’s performance contributed significantly to the PSU Bank sector’s positive momentum. In the mid-cap space, Balkrishna Industries recorded a notable gain of 4.78%, supported by robust demand in the tyre and off-highway vehicle segments. Hindustan Construction Company led the small-cap gainers with a sharp rise of 10.56%, reflecting renewed investor interest in infrastructure plays.

On the downside, Bajaj Holdings was the largest large-cap loser, declining by 3.03%, weighed down by profit booking and sector rotation. Indian Bank fell by 2.12% among mid caps, while Transworld Shipping dropped 5.15%, marking the steepest fall in the small-cap category. Other notable decliners included Bajaj Housing, which slipped 6.75%, Welspun Living down 3.28%, and Aether Industries falling 3.07%.

Market Breadth and Trading Activity

The advance-decline ratio across the BSE 500 index stood at 210 advances against 286 declines, translating to a ratio of 0.73x. This negative breadth indicates that a larger number of stocks declined compared to those that advanced, reinforcing the cautious sentiment prevailing among investors.

Mid-cap stocks showed relative strength, while small caps and broader indices like BSE 100 faced selling pressure. The mixed breadth suggests selective buying rather than broad-based market participation.

Foreign Institutional Investors and Domestic Institutional Investors

Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) activity remained subdued, reflecting the cautious stance amid global uncertainties. While detailed net inflow or outflow figures were not disclosed, the subdued market breadth and sectoral divergences suggest restrained participation from institutional players.

Global cues, including mixed signals from US markets and geopolitical developments, continued to influence investor sentiment. The cautious approach was evident in the limited upside momentum despite pockets of sectoral strength.

Global Market Influence and Outlook

Global markets showed a mixed trend, with US indices experiencing modest declines amid concerns over inflation and interest rate policies. European markets traded cautiously ahead of key economic data releases. Asian markets were largely flat to negative, reflecting a wait-and-watch approach ahead of central bank meetings.

These global developments have contributed to the subdued performance of Indian indices, with investors opting for selective stock picking rather than broad market exposure.

Noteworthy Stock Movements in BSE 500

Within the BSE 500 universe, Gujarat State Petronet emerged as a top gainer, surging by 7.52%, supported by positive sectoral developments in natural gas infrastructure. JSW Holdings followed with a gain of 4.93%, reflecting strength in the steel and infrastructure segments. Balkrishna Industries’ 4.78% rise further highlighted the mid-cap resilience.

On the downside, Bajaj Housing recorded a sharp decline of 6.75%, reflecting profit booking and sector rotation pressures. Welspun Living and Aether Industries also faced selling pressure, falling 3.28% and 3.07% respectively, amid broader market weakness.

Investor Takeaway

The market’s cautious tone on 2 December 2025 reflects a phase of consolidation after recent gains. While the Sensex remains above key moving averages, the negative breadth and sectoral divergences suggest investors are adopting a selective approach. Banking stocks, particularly in the PSU segment, and certain mid-cap industrials like Balkrishna Industries and Gujarat State Petronet have attracted buying interest, signalling confidence in specific themes.

Conversely, sectors such as media and housing finance faced pressure, indicating profit booking and rotation into defensive or value-oriented stocks. The subdued participation from institutional investors and mixed global cues are likely to keep volatility elevated in the near term.

Market participants are advised to monitor sectoral trends closely and consider valuations carefully amid the evolving macroeconomic environment. The resilience of mid caps and select large caps may offer opportunities for investors with a medium-term horizon.

Conclusion

In summary, the Indian equity markets on 2 December 2025 displayed a cautious stance with the Sensex retreating by 0.34%. Sectoral performances were mixed, with PSU banks and select mid caps leading gains, while media and housing finance sectors lagged. Market breadth remained negative, and institutional activity was subdued amid global uncertainties. Investors are advised to remain selective and attentive to evolving market dynamics as the year-end approaches.

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 →