Indian Stock Market Falls for Second Day as Investors Turn Cautious
- Markets fell for the second straight day as investors booked profits amid a weak rupee and foreign fund outflows.
- All eyes are on RBI’s policy meeting starting tomorrow, with rate signals expected to drive market direction.
- Banking, financial, and metal stocks led the losses while midcap and smallcap shares also closed lower.
The Indian stock market extended its decline for a second consecutive session on Tuesday, December 2, as investors chose to book profits amid a weakening rupee and ongoing selling by foreign institutional investors. Market sentiment also remained cautious ahead of major central bank decisions later this week, including the Reserve Bank of India’s (RBI) monetary policy review.
The BSE Sensex fell 504 points, or 0.59 percent, to close at 85,138, while the NSE Nifty 50 declined 144 points, or 0.55 percent, to end the session at 26,032. The overall market value of companies listed on the BSE dropped by Rs 1.82 lakh crore, bringing the total market capitalisation down to Rs 472.59 lakh crore.
Most sectors traded in the red, with banking, financial, and metal stocks emerging as the top losers. The broader markets also underperformed, as both the Nifty Midcap and Nifty Smallcap indices ended lower. Trading remained largely subdued throughout the day, with the Nifty moving in a narrow range before settling near its lowest levels of the session.
Market experts attributed the weakness to a combination of domestic and global factors. Ajit Mishra, Senior Vice President – Research at Religare Broking, said the market continued its consolidation phase as investors remained cautious due to weak industrial output numbers, a falling rupee, and uncertainty ahead of major policy announcements.
“Markets edged lower on the weekly expiry day and closed about half a percent lower. The tone remained weak across sectors, led by banks and metals. Investors are waiting for clarity from the U.S. Federal Reserve and the RBI, whose decisions later this week may set the near-term market direction”, Mishra said.
Global cues were also not supportive. U.S. markets ended lower in the previous session as bond yields remained high, while Asian markets offered only limited recovery. Rising U.S. Treasury yields have continued to pressure emerging markets by encouraging foreign money to move toward safer assets.
Attention now shifts to the RBI’s three-day monetary policy meeting, which begins on Wednesday. The policy decision will be announced on December 5. Investors are keenly tracking the central bank’s stance on interest rates, inflation outlook, and overall economic growth, especially amid concerns about currency weakness and slowing industrial data.
Also Read: Stocks Stall Despite Blazing GDP Growth
Stocks to Watch
Several stocks remained in focus due to corporate updates:
IRFC announced a loan agreement with Sumitomo Mitsui Banking Corporation’s GIFT City branch to raise $300 million through external commercial borrowing.
IndiGo said it received a tax penalty order of Rs 117.52 crore related to input tax credit. The airline plans to challenge the order.
India Cements revealed that its overseas subsidiaries have signed an agreement to sell their stake in an Indonesian firm for about Rs 5.4 crore.
Hindustan Copper signed an MoU with NTPC Mining to jointly explore copper and critical minerals development.
Canara Bank raised Rs 3,500 crore through Basel III-compliant bonds.
KPI Green Energy won a major order for a floating solar power project in Gujarat.
Maruti Suzuki launched its first electric SUV, the e-Vitara, expanding its electric vehicle lineup.
With both global and domestic factors influencing sentiment, markets are expected to remain volatile in the near term as investors await policy clarity from central banks.
