Markets Enter Warning Zone Amid Rupee Rout
- Markets extend losses for fourth day as Sensex and Nifty close lower despite a late recovery attempt.
- Rupee crashes to record low of 90.13, raising fears of higher imports and FII outflows.
- Investors remain cautious ahead of RBI’s MPC meeting amid mixed global signals and sectoral weakness.
Indian stock markets continued their downward trend on Wednesday, December 3, as benchmark indices slipped for the fourth straight session, moving further away from the record highs seen earlier this week. Weak global cues, a falling rupee, and investor caution ahead of the RBI’s Monetary Policy Committee (MPC) meeting kept sentiment under pressure throughout the day.
The Sensex declined by 31 points, or 0.04 percent, to close at 85,107, while the Nifty 50 ended 46 points lower, or down 0.18 percent, at 25,986. Although the markets attempted a late recovery in the final half hour of trading, the effort was not strong enough to push indices into green.
According to Ajit Mishra, Senior Vice President – Research at Religare Broking Ltd, markets remained volatile and largely range-bound for most of the session. After a flat beginning, Nifty drifted lower in early trading and then moved sideways for the rest of the day. Losses were trimmed toward the close due to buying interest in select stocks, but overall sentiment remained weak.
On the sectoral front, auto, FMCG, and energy stocks saw the most pressure, while IT stocks and private sector banks showed some resilience. The broader markets underperformed the benchmarks, with midcap and smallcap indices falling between 0.71 percent and 0.91 percent, indicating caution among investors.
A major concern for the markets was the weakening Indian rupee, which slipped to an all-time low of 90.13 against the US dollar. The sharp fall raised fears about rising import costs and inflationary pressures. It also led to worries about continued outflows by Foreign Institutional Investors (FIIs), who typically reduce exposure when the rupee weakens significantly.
In addition to currency weakness, investors remained cautious ahead of the upcoming MPC meeting, which is expected to provide direction on interest rates and liquidity conditions. Mixed global markets also contributed to the subdued mood.
Stocks to Watch
Reliance Industries: Reliance Strategic Business Ventures has acquired a 49 percent stake in Oval Invincibles, a team in The Hundred cricket tournament, from the England and Wales Cricket Board for GBP 60.27 million.
RailTel Corporation: The company won a Rs 48.78 crore project from the Mumbai Metropolitan Region Development Authority.
RVNL: Rail Vikas Nigam Limited received a Letter of Acceptance worth Rs 145.35 crore from Southern Railway for a traction power project.
ONGC: Arun Kumar Singh’s tenure as Chairman has been extended by one year from December 7 on a contract basis.
Pine Labs: The fintech firm posted a Q2 profit of Rs 5.97 crore, reversing a loss of Rs 32 crore last year. Revenue rose 17.8 percent to Rs 650 crore.
Indian Energy Exchange: Power trading volumes in November increased 17.7 percent year-on-year to 11,409 MU.
Nector Lifesciences: The board approved a share buyback of Rs 81 crore at Rs 27 per share. Record date is December 24.
Pace Digitek: Its subsidiary received an order worth Rs 99.71 crore from Advait Greenergy.
JK Cement: The company commissioned a new clinker line at its Bihar plant, doubling its production capacity.
IndiGo: DGCA has begun a probe into recent flight disruptions and has asked the airline to submit a corrective plan.
Overall, investors are likely to remain cautious in the near term as they track rupee movement, global trends, and central bank signals for further market direction.
