Stock Market Today: Sensex Dips to 85,019; Nifty Slips to 25,954

Mid-cap indices show slight improvement, while small-cap indices remain under pressure

The Indian stock market opened on a cautious note today, reflecting pressure from foreign capital outflows, a weakening rupee, and global uncertainty. Nifty 50 begins trade near 25,954, while the BSE Sensex starts around 85,019, marking a soft opening for both benchmarks. Soon after, a mild recovery takes shape, and at the time of writing, Sensex trades near 85,143, and Nifty moves to approximately 25,983.

Mid-cap indices show slight improvement, while small-cap indices remain under pressure. The early trend suggests a mixed mood across segments as traders react to currency movements and expectations from the upcoming Reserve Bank of India policy decision.

Market Coming Off a Four-Day Losing Streak

The market opens today after a challenging previous session. On 3 December, the Nifty 50 slipped below the 26,000 mark, and the Sensex closed almost flat at 85,106.81, marking the fourth straight day of weakness.

Foreign selling remains the biggest negative force this week. In just the first three days of December, foreign portfolio investors pulled out more than $900 million, which is more than double the selling recorded in the whole of November. This creates pressure on equity valuations and weakens overall sentiment.

The rupee also continues to struggle and touches new record lows, crossing the Rs. 90 per US dollar level. This deepens concerns for sectors dependent on imported raw materials or international payments.

Rupee Weakness Adds to Market Anxiety

A depreciating rupee plays a major role in the cautious mood seen today. The currency continues to slide and trades at fresh lows, making imports more expensive. Companies with significant overseas debt or dollar-linked expenses face added pressure because a weaker rupee increases their financial burden.

The Indian Rupee’s weakness also affects inflation expectations, which may influence future interest-rate decisions. These factors together contribute to a more risk-averse stance among traders and institutions in early trade.

Key Sector Movements in Early Trade

Some sectors offer support despite the weak overall tone. Information technology and metal stocks gain strength early in the session, helping the market recover from initial losses. IT stocks benefit from global demand and a weak rupee, which typically improves earnings for companies with significant export exposure.

Metal stocks also perform well, supported by steady global commodity prices and positive cues from international markets.

Public-sector bank stocks, however, fall sharply. The decline comes after the government clarified that there is no current plan to increase the foreign direct investment limit in PSU banks. This statement reverses earlier hopes and pushes the entire PSU banking index into negative territory.

Mid-Cap and Company-Specific Moves

Mid-cap performance remains mixed. Certain stocks receive strong investor interest due to company-specific developments. Chalet Hotels attracts attention after announcing plans to launch a new luxury brand, boosting its stock price in early trade.

NBCC (India) Limited also stays in focus after securing multiple redevelopment orders from municipal authorities. These orders improve the company’s business outlook and support its stock in an otherwise weak market.

Despite these positives, broader mid-cap and small-cap indices continue to face selling pressure due to foreign outflows and heightened volatility.

Investors Stay Cautious Ahead of RBI Policy Decision

A key reason for the cautious market behaviour today is the upcoming policy decision from the Reserve Bank of India. Traders await clarity on interest rates, liquidity support, and inflation control measures.

Any change in rates or liquidity conditions can influence borrowing costs, market valuations, and overall investor appetite. As a result, significant buying activity is limited during the early session, with participants preferring to stay defensive until the policy announcement.

Persistent Foreign Selling Weighs on Sentiment

Foreign portfolio investors continue aggressive selling in Indian equities, pulling out nearly $1 billion in just three days. This level of outflow puts notable pressure on benchmark indices.

Foreign investors appear to be reallocating capital toward markets with stronger near-term triggers, including those with major developments in technology and artificial intelligence. This global shift reduces the flow of money into emerging markets, including India, and keeps domestic equities on a slippery track.

Corporate and Economic Risks in Focus

The combination of rising global uncertainty, a weak domestic currency, and foreign selling activity creates a challenging environment today. Many companies with exposure to imported materials or dollar-denominated loans face increased financial stress.

Corporate India is also reviewing hedging strategies as the falling rupee results in higher mark-to-market losses. These currency-related factors may impact quarterly earnings for several sectors if the trend continues.

What the Market is Watching Today

As the session continues, traders closely observe how benchmarks behave after the early recovery. The rupee’s movement remains a crucial indicator, as further depreciation could affect inflation and foreign investor confidence.

Sector-wise trends are also important. Information technology, metals, and infrastructure-related companies show potential for stable performance. On the other hand, financials and firms with high import dependence may remain under pressure.

A turnaround in foreign investor flows could act as a major positive trigger, but there is no clear sign of this yet. Market direction through the day will also depend on global cues and reactions ahead of the RBI policy meeting.

Overall Market View for the Day

The Indian stock market enters today’s session with caution and mild volatility. Early losses are partly recovered thanks to gains in select sectors, but the broader environment remains fragile.

Foreign outflows, a weak rupee, and policy uncertainty dominate sentiment. At the same time, strong order wins, sector-specific gains, and selective stock opportunities provide some stability.

The market’s near-term path is expected to depend heavily on currency trends, foreign investor actions, and the upcoming RBI policy signals.