Sensex and Nifty Trends

The benchmark Sensex opened 316.39 points lower and continued to trade under pressure throughout the day. Despite the decline, the index remains 1.09% shy of its 52-week high of 86,159.02. Technical indicators show the Sensex trading above its 50-day moving average (DMA), which itself is positioned above the 200 DMA, suggesting that the medium-term trend retains some underlying strength despite the current pullback.

The Nifty index mirrored the Sensex’s performance, with only six out of 38 sectors advancing, while 32 sectors declined, underscoring broad-based weakness. The NIFTY PSU Bank sector emerged as the top gainer, rising 0.94%, buoyed by select banking stocks, while the NIFTY Media sector was the top laggard, falling 0.88% amid profit booking and subdued advertising spends.

Sectoral Performance and Market Breadth

Market breadth was notably negative, with 174 stocks advancing against 325 declining on the BSE500, resulting in an advance-decline ratio of 0.54x. Midcap and smallcap segments faced pressure, with the BSE Midcap index down 0.12%, BSE100 down 0.39%, and BSE Smallcap down 0.41%. Midcaps traded largely flat, reflecting investor caution in the mid-tier space.

Among sectors, the PSU banking segment showed resilience, supported by Canara Bank, which was the top large-cap gainer, rising 2.40%. Conversely, sectors linked to media and consumer discretionary faced selling pressure, contributing to the overall market weakness.

Top Gainers and Losers

Among the top gainers on the BSE500, Guj.St.Petronet led with an 8.10% rise, followed by Balkrishna Industries at 5.87% and Birlasoft Ltd at 4.67%. Balkrishna Industries also stood out as the top midcap gainer, while Hindustan Construction Company recorded the highest gains among small caps, surging 11.27%.

On the downside, Bajaj Housing was the top loser on the BSE500, falling 5.93%, with Bajaj Holdings and Garden Reach Shipbuilders also among the biggest decliners, down 3.51% and 3.63% respectively. Bajaj Holdings was the top large-cap loser, while Coromandel International and Sastasundar Ventures were the top midcap and smallcap losers, declining 2.57% and 5.48% respectively.

Foreign Institutional and Domestic Institutional Activity

Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) activity remained subdued, reflecting the cautious stance amid global uncertainties. While detailed net flows are not disclosed, the overall market tone suggests limited buying interest from FIIs, with DIIs maintaining a measured approach. This restrained participation contributed to the lacklustre market momentum.

Global Cues and Their Impact

Global markets showed mixed trends, with major indices in the US and Europe trading cautiously ahead of key economic data releases. Concerns over inflation trajectories and central bank policies continue to influence investor sentiment worldwide. Asian markets were similarly subdued, with investors awaiting clarity on geopolitical developments and economic indicators.

These global factors weighed on the Indian market, limiting upside potential despite pockets of strength in select sectors. The cautious global backdrop, combined with domestic profit booking, shaped the market’s subdued performance on 2 December 2025.

Outlook and Key Takeaways

The current market environment reflects a phase of consolidation after recent gains, with investors digesting mixed signals from earnings, macroeconomic data, and global developments. The Sensex’s position above key moving averages suggests that the medium-term trend remains intact, but near-term volatility may persist given the uneven sectoral performance and cautious institutional flows.

Investors may find opportunities in fundamentally strong large caps and select midcaps that demonstrate resilience amid broader weakness. Monitoring sector rotation and global cues will be crucial in navigating the market in the coming sessions.

Summary

On 2 December 2025, the Indian equity market experienced a broad-based decline with the Sensex retreating 0.48%. Sectoral performance was uneven, with PSU banks showing relative strength while media and consumer discretionary sectors lagged. Market breadth was weak, and midcap and smallcap indices faced pressure. Top gainers included Guj.St.Petronet and Balkrishna Industries, while Bajaj Housing and Bajaj Holdings were among the notable decliners. Global uncertainties and cautious institutional activity contributed to the subdued market mood. Investors are advised to focus on stocks with strong fundamentals and monitor global developments closely.

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