Indices Recover Modestly, Brace for RBI Decision and Rupee Volatility

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

By Dehuti Jani

December 4, 2025 at 11:43 AM IST

Indian equities snapped a four-day losing streak on Thursday, ending modestly higher as strong buying in IT stocks helped offset pressure from a record-low rupee, which briefly hit 90.56 per US dollar. The Sensex rose 158.5 points to 85,265.32, while the Nifty50 gained 47.75 points to close at 26,033, though upside remained capped as investors stayed cautious ahead of Friday’s RBI MPC decision. Broader markets were mixed, with the Nifty MidCap 100 closing flat and the Nifty SmallCap 100 slipping 0.24%.

Sectoral trends were uneven: Nifty IT led gains, up 1.4%, followed by Realty, FMCG, Auto, Pharma, Metal and Chemicals, while Media fell 1.45%, and weakness persisted in Bank, Financial Services, Consumer Durables and Oil & Gas. Among Sensex constituents, TCS, Bharat Electronics, Tech Mahindra, Infosys and HCL Tech were the top gainers, whereas Reliance Industries, Maruti Suzuki, Kotak Mahindra Bank, Titan and Eternal ended as key laggards.

Top Movers of the Day
Philips dropped over 5% as CEO Roy Jakobs signalled that organic revenue growth in 2026 is unlikely to double from the expected 2% in 2025, disappointing markets that had priced in a sharper recovery.

Bajaj Housing Finance extended its slide, falling nearly 10% over five days and drifting close to its IPO level after promoter Bajaj Finance sold shares worth ₹16 billion, raising concerns about additional supply despite the firm’s strong fundamentals.

InterGlobe Aviation (IndiGo) slipped 3.4% to ₹5,405 amid operational disruptions that impacted passengers and weighed on sentiment.

Biocon fell 6% to ₹387.45 on heavy volumes after announcing that its board will meet on December 6 to consider additional investment in Biocon Biologics, its unlisted material subsidiary.

Best Agrolife climbed 6.9% to ₹416 after unveiling plans for a stock split and bonus issue, attracting strong investor interest.

Mphasis gained 2.52% to ₹2,933.10 after announcing new collaborations under its Sparkle Innovation Program with startups, research partners and academic institutions to accelerate enterprise-scale AI and digital transformation solutions.

Granules India traded firm after its US subsidiary, Granules Consumer Health, cleared a USFDA GMP inspection with zero observations, reinforcing quality credentials.

Adani Enterprises rose 1.91% to ₹2,231.70 after its JV AdaniConneX incorporated a new subsidiary focused on developing and operating data centres, strengthening its digital infrastructure play.

Pine Labs, newly listed, gained 2.5% to ₹253.90 after releasing its Q2FY26 results, which drew investor buying.

Hexaware Technologies added 2% to ₹770 after announcing the opening of a new delivery centre in Cairo, extending its global footprint across the Middle East and Europe.

Petronet LNG rose 4% to ₹279.95 after signing a 15-year ethane unloading, storage and handling agreement with ONGC, boosting long-term visibility for its logistics and processing operations.

Futures & Options
Nifty December 2025 futures closed at 26,189, trading at a 155.25-point premium to the Nifty’s cash close of 26,033.75, which rose 0.18% on the day. Volatility eased sharply, with India VIX falling 3.52% to 10.82, signalling a calmer near-term outlook. Reliance Industries, TCS, and InterGlobe Aviation 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 bonds weakened on Thursday, with yields staying elevated as a sliding rupee, stronger-than-expected July-September GDP growth of 8.2%, and policy uncertainty kept traders cautious ahead of Friday’s RBI policy decision. The benchmark 10-year yield ended at 6.5267%, only a shade below Wednesday’s 6.5369%, but still holding near recent highs and reflecting sustained pressure across the curve. With the rupee under strain and economic data firm, markets have scaled back expectations of a near-term repo rate cut, keeping positioning defensive and limiting demand for longer-tenor bonds.

Forex
The rupee briefly hit a fresh record low of 90.42 on Thursday but later recovered to close at 89.9750, up 0.2%, snapping a six-session losing streak as dollar sales from multiple foreign banks likely driven by inflows helped stabilise the currency. India’s widening trade deficit and stalled US talks have slowed dollar inflows, making the rupee Asia’s worst performer this year.

Crypto
Ethereum led the crypto rally on Thursday, surging 6.29% to cross $3,200 for the first time since early November, buoyed by the newly activated Fusaka upgrade. Bitcoin held steady above $93,000, up 1.40%, while memecoins like Pippin continued their explosive run, jumping 8.02% today and more than 130% in recent sessions amid a broader sector rotation. Total crypto market capitalisation is now approaching $3.2 trillion, signalling renewed investor participation after last month’s sharp correction.

US Stock Futures
US stock futures were largely flat on Thursday, holding steady as investors awaited fresh data that could challenge expectations of a December Fed rate cut. Dow futures edged up 0.1%, while S&P 500 and Nasdaq 100 futures also ticked higher by around 0.1%, mirroring the modest gains Wall Street logged on Wednesday. The muted moves reflected a cautious tone as markets entered a data-heavy stretch that could influence the near-term policy outlook.

US Treasury Notes
US Treasury yields edged higher on Thursday, with the 10-year rising to around 4.08%, reversing the prior session’s dip as global bond markets moved in tandem with a more hawkish monetary outlook abroad. Japan’s 10-year yield jumped to an 18-year high on speculation that the Bank of Japan may raise rates this month supported by a 30-year JGB auction that drew its strongest demand since 2019.

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