Sensex and Nifty Trends

The BSE Sensex opened the day 119.25 points lower but staged a recovery to close at 85,253.43, registering a gain of 0.17%. This level places the Sensex approximately 1.06% below its 52-week high of 86,159.02, signalling that the benchmark index remains within striking distance of recent peaks. The index is trading above its 50-day moving average (DMA), which itself is positioned above the 200 DMA, a technical configuration often interpreted as a positive medium-term trend.

Meanwhile, the Nifty 50 index mirrored this resilience, supported by gains in large-cap stocks. The BSE 100 large-cap index recorded a rise of 0.22%, whereas mid-cap and small-cap indices showed slight declines of 0.19% and 0.31% respectively, indicating a cautious stance among investors towards smaller companies.

Sectoral Performance: Leaders and Laggards

Out of 38 sectors tracked, 20 advanced while 18 declined, reflecting a broadly mixed market environment. The Information Technology sector led the gains with the NIFTY IT index rising by 1.34%, buoyed by strong performances from select large-cap IT companies. Conversely, the Media sector faced pressure, with the NIFTY MEDIA index falling by 1.34%, weighed down by profit booking and subdued investor interest.

Other notable sector movements included steady performances in financials and consumer discretionary stocks, while energy and industrial sectors showed varied results depending on individual stock momentum.

Top Gainers and Losers Across Market Caps

Among large caps, Coforge emerged as the top gainer with a rise of 2.78%, reflecting positive investor sentiment towards IT services firms. In the mid-cap space, Hexaware Technologies recorded a notable gain of 4.91%, further underscoring the strength in the IT sector. Small-cap stocks saw more pronounced moves, with SMC Global Securities surging by 19.22%, highlighting pockets of speculative interest.

On the downside, Suzlon Energy led the large-cap losers with a decline of 3.59%, pressured by sector-specific challenges. Hitachi Energy and Lotus Chocolate were the top laggards in mid and small caps, falling by 7.59% and 8.08% respectively, reflecting profit-taking and sector headwinds.

Market Breadth and Broader Indices

The advance-decline ratio across the BSE 500 index stood at 231 advances against 267 declines, resulting in a ratio of 0.87x. This indicates a broader market tilt towards selling pressure despite the benchmark indices closing higher. The BSE 500 top gainers list was led by India Cements (9.32%), Hindustan Copper (7.45%), and Kirloskar Oil (7.30%), while the top losers included Hitachi Energy (-7.59%), Kaynes Technology (-6.16%), and Wockhardt (-5.83%).

Foreign Institutional and Domestic Investor Activity

Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) continued to play a pivotal role in shaping market momentum. While detailed net inflow or outflow figures were not disclosed, the market’s recovery from the morning dip suggests that buying interest from DIIs may have supported the rally. FIIs have been cautious in recent sessions amid global uncertainties, which has contributed to the mixed sectoral performance observed today.

Global Cues and Their Impact

Global markets exhibited a mixed tone on 4 December 2025, with US and European indices showing modest gains amid ongoing economic data releases and central bank commentary. Asian markets were largely subdued, reflecting investor caution ahead of key economic indicators. These global developments influenced Indian markets, with early weakness giving way to recovery as domestic factors gained prominence.

Technical Observations and Market Outlook

The Sensex’s position above its 50 DMA, which itself is above the 200 DMA, suggests a continuation of the prevailing upward trend in the medium term. However, the relatively narrow gains and the advance-decline ratio below 1 indicate that market breadth remains somewhat fragile. Investors may continue to favour large-cap stocks and sectors with stable earnings visibility, such as IT, while remaining cautious on more volatile segments like media and certain mid and small caps.

Summary

On 4 December 2025, the Indian equity markets demonstrated resilience despite early session weakness and mixed sectoral performances. The Sensex’s modest gain of 0.17% and the Nifty’s steady trend were supported by strong IT sector gains and selective large-cap buying. However, mid and small caps showed signs of caution, with declines in key indices and a sub-1 advance-decline ratio. Foreign and domestic institutional activity, alongside global market developments, continue to influence market direction. Investors may find opportunities in fundamentally strong stocks while monitoring broader market breadth and sectoral shifts.

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