Indian stock markets experienced a day of mixed fortunes on Wednesday, December 3, 2025, with benchmark indices closing slightly lower after a choppy session. Investors exercised caution ahead of the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) decision, leading to profit booking after recent record highs. The Sensex ended down 31 points, while the Nifty 50 fell 46 points.
Here's a look at some of the stocks that were in the spotlight:
PSU Banks Take a Hit
Shares of public sector banks (PSBs) faced significant selling pressure. The Nifty PSU Bank index dropped considerably after the government clarified it wasn't considering raising the foreign direct investment (FDI) limit in these banks from the current 20% to 49%.
- Indian Bank: Led the decline, plummeting 6% to ₹807. Earlier in the day, the stock fell by 5.51% to ₹859.45.
- Punjab National Bank (PNB): Also saw a sharp fall.
- Bank of India: Faced similar selling pressure.
- Other PSU Banks: Canara Bank, Bank of Baroda, Central Bank of India, Union Bank, Punjab & Sind Bank, and UCO Bank also traded lower, down up to 2%. State Bank of India (SBI) also declined.
The clarification on the FDI limit reversed earlier speculation that had triggered a rally in PSU bank stocks. Minister of State for Finance Pankaj Chaudhary's statement in the Rajya Sabha put an end to these reports.
IT Stocks Rally on Rupee Depreciation
bucked the market trend and saw gains. The Nifty IT index rose, supported by a weakening rupee. The rupee's fall to a record low of 90.13 against the US dollar boosted sentiment for dollar-revenue earners.
- Infosys: Gained along with other IT majors. Analysts believe Infosys will benefit from enterprise-wide AI spending.
- Wipro: Led the pack with a 2% jump.
- Tata Consultancy Services (TCS): Also advanced nearly 2%.
- Other IT Stocks: Mphasis, Tech Mahindra, LTI Mindtree, and Coforge also traded in the green.
The IT sector benefits from a weaker rupee as they earn a significant portion of their revenue in dollars while most expenses are in rupees.
Other Stocks in Focus
- Adani Enterprises: Was among the top losers.
- Bharat Electronics: Also faced losses.
- Shriram Finance: Was among the top losers as well.
- Wipro, TCS and HDFC Bank: Were among the top gainers.
- Max Healthcare: Was top loser in the NIFTY50 index.
Overall Market Sentiment
The Indian stock market experienced its fourth consecutive session of decline amid pressure on the rupee and selling by overseas investors. The rupee's slide past the 90-per-dollar mark marked its fifth straight day of depreciation. Weak capital flows and persistent importer demand contributed to the rupee's weakness. The BSE MidCap index and BSE SmallCap index also ended lower. Sectoral indices traded mixed, with telecom and IT seeing buying interest, while metal and power sectors faced selling pressure.
