Nifty Drift Lower; FII Selling, Record-Low Rupee Weighs Sentiment

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

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

December 3, 2025 at 11:43 AM IST

Indian equities extended their three-session slide on Wednesday as caution prevailed ahead of the RBI’s policy decision, with persistent FII outflows, a record-low rupee, and weakness in banks weighing on sentiment. The Sensex slipped 31.46 points to 85,106.81 and the Nifty fell 46.2 points to 25,986, while broader indices also softened, with the Nifty MidCap down 0.22% and SmallCap lower by 0.55%.

Most sectors traded in the red led by PSU banks, financial services, metals and consumer durables, while IT stocks outperformed as the rupee hit a fresh low of 90.29, boosting export-oriented tech majors such as TCS, Infosys, HCL Tech and Tech Mahindra, which helped cushion the downside.

Top Movers of the Day
Vodafone Idea rallied 4% to ₹10.59 amid heavy volumes as the stock extended its two-day, 7% surge. Sentiment improved after the Union Telecom Minister said the Centre may finalise AGR relief recommendations for the company in the coming weeks.

DOMS Industries jumped 6.4% to ₹2,666.95 after Antique Stock Broking initiated coverage with a Buy rating and a target price of ₹3,250, implying a 22.8% upside. The brokerage cited strong growth prospects driven by capacity expansion, wider distribution, and a robust innovation pipeline.

Mahindra Lifespace Developers gained after being selected to redevelop a residential society in Matunga (West), Mumbai, with a project gross development value of ₹10.1 billion. The 1.53-acre redevelopment will create a modern community with enhanced amenities.

Angel One dropped 6.04% to ₹2,644.10 after the brokerage reported an 11.1% month-on-month decline in gross client additions for November and a 16.6% YoY drop, raising concerns about slowing retail participation.

Emmvee Photovoltaic rose nearly 4% to ₹248.50, extending Tuesday’s gains after reporting a sharp improvement in Q2FY26 earnings. Consolidated net profit surged to ₹237.86 crore, nearly seven times last year’s figure, and grew 27% sequentially.

Ola Electric Mobility hit a new all-time low of ₹38.18, falling 5% amid heavy volumes. The EV maker’s stock has broken below its previous low from July 2025 despite its extensive nationwide D2C distribution network and vertical integration in EV and battery cell manufacturing.

Gujarat Pipavav Port gained 3.2% to ₹187.75 after signing a non-binding MoU with NYK India to enhance RoRo infrastructure, supporting India’s expanding vehicle-export and EV logistics ecosystem.

Meesho IPO was fully subscribed on Day 1, driven mainly by strong RII participation, while NIIs subscribed 1.23x and QIBs remained muted at 0.16x.

Vidya Wires IPO also saw healthy traction, fully subscribed at 1.09x, with the retail portion covered 1.78x, NIIs 0.92x, and no QIB bids on Day 1.

Futures & Options
Nifty December 2025 futures closed at 26,142.70, trading at a 156.7-point premium to the Nifty’s cash close of 25,986, which declined 0.18% on the day. Volatility remained steady, with India VIX edging down 0.13% to 11.21, signalling a relatively calm near-term outlook. HDFC Bank, JSW Steel and SBI were the most actively traded stock futures as markets continued through the December 2025 series ahead of its 30 December 2025 expiry.

Bonds
Indian government bond yields were steady on Wednesday, with the 10-year benchmark rising slightly to 6.5318% from 6.5155%, as traders stayed cautious ahead of the RBI policy decision and uncertainty around a US–India trade deal. The RBI’s latest T-bill auction on December 3 saw strong demand across the 91-day, 182-day and 364-day maturities, with bids far exceeding notified amounts and cut-off yields ranging between 5.35% and 5.55%.

Forex
The rupee breached the 90-per-dollar mark for the first time on Wednesday, sliding to a fresh record low of 90.29 before closing at 90.19, down 0.4% and marking its sixth straight session of declines. Traders continued to wager that weak trade flows and subdued portfolio inflows will keep Asia’s worst-performing currency under pressure unless the RBI steps in more forcefully.

Crypto
Crypto markets surged on Wednesday after Vanguard lifted its ban on Bitcoin ETFs, reopening access for its clients and unleashing a wave of institutional inflows. Bitcoin jumped over 7% to $92,911, with BlackRock’s IBIT ETF alone clocking more than $1.8 billion in trading volume within two hours, while Ethereum rallied nearly 9.5% to $3,054 ahead of its Fusaka upgrade activation later today. The renewed institutional participation has boosted sentiment across major tokens, with investors increasingly scouting for the next breakout asset as network upgrades and liquidity improve.

US Stock Futures
US stock futures moved higher on Wednesday as markets attempted to stabilise after the prior session’s losses, with Dow futures up 0.22%, and both S&P 500 and Nasdaq 100 futures gaining around 0.2%. Sentiment was supported by strong after-hours moves, with Marvell Technology jumping over 10% on upbeat data-centre growth projections, while American Eagle Outfitters also surged more than 10% after raising its full-year forecast and reporting a strong start to the holiday shopping season.

US Treasury Notes
US Treasury yields held steady on Wednesday, with the 10-year note near 4.08% and the 2-year around 3.50%, as investors weighed expectations of a Federal Reserve rate cut next week. Markets are currently pricing in an 89% probability of a 25 basis point reduction and roughly 90 basis points of total easing for 2026, keeping yields slightly softer amid signs of a cooling labour market.

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