The Indian stock market experienced a volatile session on December 1, 2025, with the Sensex and Nifty ending the day on a flat note after retreating from record highs. Both indices had surged to new peaks in early trade, fueled by strong Q2 GDP data, but profit-booking and a weakening rupee weighed on investor sentiment.
The BSE Sensex closed at 85,641.90, down by a marginal 64.77 points or 0.08 percent. The NSE Nifty50 settled at 26,175.75, a decline of 27.2 points or 0.1 percent. Earlier in the day, the Sensex reached a record high of 86,159, while the Nifty touched 26,325.8.
The rupee's slide to a new record low against the US dollar added to the market's concerns. The local currency weakened amid consistent foreign fund outflows and lingering uncertainty surrounding trade negotiations. On December 2, 2025, the rupee hit a fresh record low of Rs 89.95 against the US dollar.
Sectoral Performance was mixed. Nifty Realty, Healthcare, Pharma, Bank, Financial Services, FMCG, Media, Consumer Durables, and Oil & Gas witnessed declines. Conversely, Nifty Auto, Metal, and IT closed in the green. The Nifty MidCap index remained flat, while the Nifty SmallCap index gained 0.25 percent.
Top gainers in the Nifty 500 included Balkrishna Inds, Akzo Nobel, and Schneider Elect. On the Sensex, Tata Motors PV, Maruti Suzuki, Bharat Electronics, Kotak Mahindra Bank, Adani Ports and HCL Tech were among the top gainers.
Major laggards on the Sensex were Bajaj Finance, Sun Pharma, Trent, Mahindra & Mahindra, State Bank of India, and Bharti Airtel. Other key laggards included Bajaj Finserv and SBI.
Global Cues also played a role in the market's subdued performance. Asian markets slipped, contributing to the cautious sentiment. Japan's Nikkei share average closed flat on Tuesday, following a steep decline the previous day after signals that the Bank of Japan may hike interest rates as soon as this month.
Market experts suggest that the market is likely to consolidate until there is clarity from the RBI's Monetary Policy Committee (MPC) meeting, which is scheduled between December 3–5. Investors are awaiting the outcome of the meeting for further direction. Despite strong economic indicators, traders are exercising caution, leading to the current range-bound trading.
Nomura projects a positive outlook, forecasting the Nifty 50 to reach 29,300 by the end of 2026, which is about 12% higher than the current levels. This projection is based on expectations of cyclical economic momentum and earnings growth supported by favorable policies.
