Equities Ease on Cautious Tone After GDP Surprise and Rupee Weakness

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

istock.com/Rasi Bhadramani

By Dehuti Jani

Dehuti Jani is an experienced project manager who also works as an independent financial journalist.

December 1, 2025 at 12:02 PM IST

Indian equities eased on Monday after touching fresh highs last week, slipping into a range-bound phase as expectations of a December RBI rate cut faded following stronger-than-expected 8.2% July-September GDP growth and the rupee’s sharp depreciation. Sentiment also turned cautious as November GST collections softened, while selective profit-taking emerged across defensives. The Nifty50 closed at 26,175.75 down 0.10% and the Sensex at 85,641.90 down 0.08%, though gains in Tata Motors PV, BEL, Kotak Mahindra Bank and Maruti Suzuki offered some support.

Sectoral trends were mixed realty, pharma, healthcare and consumer durables saw notable declines, while autos and metals stayed firmly in the green, buoyed by strong November auto sales aided by GST rationalisation, benign inflation and robust wedding-season demand.

In commodities, gold and silver opened the week strongly, with Gold February futures at ₹1,30,383 per 10gm (+0.68%) and Silver March futures jumping to ₹1,78,620/kg, reflecting renewed safe-haven appetite.

Top Movers of the Day
Ashok Leyland gained after reporting a strong sales update, rising to an intraday high of ₹160 as November volumes jumped to 18,272 units versus 14,137 units last year, reflecting robust demand in the commercial vehicle segment.

TVS Motor Company rallied 4% to ₹3,659.75 after posting a stellar 30% YoY growth in November sales, with total volumes climbing to 519,508 units. Domestic two-wheeler sales rose 20%, underscoring sustained demand momentum. Hyundai Motor India rose 4% to ₹2,417 after reporting strong November sales, adding momentum to the broader auto rally. Hero MotoCorp hit a new all-time high of ₹6,330, rising 2.5%, ahead of its November sales release. The stock’s outperformance reflects optimism over FY26 volume growth, supported by stronger rural demand, healthy farm output and a favourable monsoon.

Wockhardt surged 19% to ₹1,472.70 after the USFDA formally accepted the New Drug Application (NDA) for its first-in-class antibiotic Zaynich, triggering heavy buying interest.

Lupin advanced after receiving USFDA approval for Armlupeg (pegfilgrastim-unne), its first biosimilar in the US market, a key milestone. The biologic, manufactured at Lupin’s Pune facility, lowers infection risk during chemotherapy and high radiation exposure.

Natco Pharma rose 5% to ₹922.15 after ICRA reaffirmed and assigned fresh credit ratings to the company, strengthening investor confidence in its financial profile.

Hindustan Zinc climbed 3% to ₹501, driven by heavy volumes exceeding 70 lakh shares, taking its recent gains to 10%.

Ravelcare’s IPO witnessed overwhelming interest on debut, with the issue subscribed 6.94 times by early afternoon. Retail investors led the surge, subscribing 8.7 times, followed by NIIs at 7.32 times, while QIBs subscribed 3.5 times.

Futures & Options
Nifty December 2025 futures closed at 26,330.10, trading at a 154.34-point premium to the Nifty’s cash close of 26,175.75, which slipped 0.10% on the day. Volatility was steady, with India VIX inching up 0.06% to 11.63, indicating a largely unchanged near-term risk environment. HDFC Bank, Reliance Industries, and State Bank of India were the most actively traded stock futures as the market progressed through the December 2025 series ahead of its 30 December 2025 expiry.

Bonds
Indian government bond yields firmed on Monday, with the 10-year benchmark rising to 6.5732% from 6.5463% in the previous session, after the stronger-than-expected GDP print dampened expectations of an immediate RBI rate cut. The solid growth data has left traders split on whether the central bank will move ahead with a cut or maintain a pause at this week’s policy meeting. Market participants now await the RBI’s decision for the next major directional cue on yields.

Forex
The rupee slipped to a fresh record low on Monday, touching 89.7575 before closing at 89.5475, down 0.1%, as maturing NDF positions and persistent bearish sentiment dragged the currency lower. Traders noted that India’s absence of a trade deal with the US continues to weigh on flows, leaving the rupee vulnerable despite the economy’s status as the fastest-growing major economy and domestic equities hitting record highs. Weak trade and investment inflows have kept depreciation pressures firmly in place this year.

Crypto
Crypto markets opened December under heavy selling pressure, with Bitcoin sliding nearly 5% to around $86,476 after touching an intraday low of $85,618, extending its steepest monthly drop since the 2021 crash. The world’s largest cryptocurrency briefly fell 6.1%, hovering close to last month’s eight-month low of $80,553, as renewed risk aversion hit both equities and digital assets. Ether also declined sharply, down 6% to $2,840, after losing 22% in November, its worst monthly performance since February’s 32% slide.

US Stock Futures
US stock futures slipped on Monday as Bitcoin’s sharp selloff added pressure and Wall Street’s late-November rebound faced resistance on the first trading day of December. Dow futures fell 0.4%, while S&P 500 futures dropped 0.5% and Nasdaq 100 futures slid 0.7%, signalling a softer open after a five-day winning streak last week.

US Treasury Notes
US Treasury yields inched higher on Monday, with the 10-year note hovering around 4.042%, up from the previous close of 4.02%, as rate-sensitive markets adjusted to expectations of a potential Federal Reserve rate cut later in December. Shorter maturities were steady, with the 2-year at 3.508% and the 3-year at 3.504%, reflecting cautious early-week positioning. The slight uptick in yields came as investors reassessed the Fed’s path and the broader dollar tone after last week’s volatility.

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