NIFTY PSU Bank

The equity benchmarks fell for the fourth straight session on Wednesday as sustained foreign fund outflows and a record-low rupee weighed on investor sentiment.

At around, 10:20 a.m. the Sensex declined 332.16 points or 0.39 percent to 84,806.11, while the broader Nifty slipped to 25,912.70, down 119.50 points or 0.46 percent.

<a href="https://www.moneycontrol.com/india/stockpricequote/hospitalhealthcare-services/maxhealthcareinstitute/MHI" target="_blank">Max Healthcare Institute</a>, Shriram Finance and Coal India were among the major laggards in the Nifty50 pack, declining up to 3 percent, while <a href="https://www.moneycontrol.com/india/stockpricequote/computers-software/wipro/W" target="_blank">Wipro</a> and Tata Consultancy Services were the major gainers, rising up to 2 percent. Market breadth was also negative as about 1145 shares advanced, 2113 shares declined and 160 shares unchanged.

Key factors behind market decline

1) Rupee hits all-time low: The rupee opened at a fresh low of 89.96 against the US dollar and slipped to 90.1325 in early trade on December 3, tracking persistent equity outflows and uncertainty around the India-US trade deal. The currency had ended the previous session at 89.87.

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, noted "Rupee slipped below the 90-mark for the first time, pressured by the absence of a confirmed India–US trade deal and repeated delays in timelines. Markets now want concrete numbers rather than broad assurances, leading to accelerated selling in the rupee over the past few weeks."

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the rupee’s continued depreciation and concerns of further weakness "have contributed to the slow drifting down of the market", prompting FIIs to stay on the sell side.

<a href="https://www.moneycontrol.com/news/business/rupee-falls-to-a-new-low-crosses-90-mark-against-us-dollar-13707781.html" target="_blank">Rupee falls to a new low, crosses 90-mark against US dollar</a>

2) Persistent FII selling: Foreign Institutional Investors sold equities worth Rs 3,642.30 crore on Tuesday, marking the fourth consecutive session of outflows.

"FII outflows, a record-weak rupee and pressure on banking stocks keep sentiment fragile," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

<a href="https://www.moneycontrol.com/news/business/markets/stock-market-live-sensex-nifty-50-share-price-gift-nifty-latest-updates-03-12-2025-liveblog-13707533.html" target="_blank">Stock Market LIVE Updates</a>

3) Banking stocks decline: Banking shares saw broad-based selling across private and PSU lenders, as well as financial services stocks.

<a href="https://www.moneycontrol.com/news/business/markets/indian-bank-pnb-other-psu-bank-stocks-fall-up-to-3-5-after-finmin-clarifies-no-proposal-to-hike-fdi-limit-13707950.html" target="_blank">PSU bank shares fell</a> after the government clarified it has no plans to raise the foreign direct investment limit in state-owned lenders from 20 percent to 49 percent. The Nifty PSU Bank index was down nearly 2 percent at 10.10 am. Private sector banks also traded lower, with Bandhan Bank and Kotak Mahindra Bank slipping up to 1 percent. Bank Nifty declined 0.4 percent due to index rejig.

"Nifty’s correction of about 300 points from the record high can be seen as a technically driven move, influenced by the Bank Nifty rejig and concerns over the rupee’s depreciation," Vijayakumar said. He added that the reduction in the weight of HDFC Bank and ICICI Bank is a technical adjustment unrelated to fundamentals.

Technical view

Anand James, Chief Market Strategist at Geojit Financial Services, said Nifty’s slide extended towards 26,060 on Tuesday with “no signs of regrouping by bulls”.

He said the 25,860–25,700 zone now stands exposed, with fears of a decline towards 25,300. On the upside, resistance is expected at 26,087–26,111, while a move above 26,200 would be needed to signal a recovery.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

A financial journalist with over 10 years of experience, specialising in tracking stock market movements and fundamental developments that impact investors and the broader economy. A keen observer of global financial markets, I regularly engage with leading market voices to write stories. At Moneycontrol, I focus on decoding market trends, policy shifts and economic changes, driven by a constant passion to learn, analyse, and share knowledge with my readers.

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Sensex down 300 pts, Nifty below 25,950: Rupee at new record low among key factors behind market decline

Sensex news today: Sensex down 300 pts, Nifty below 25,950: Rupee at new record low among key factors behind market decline

The equity benchmarks fell for the fourth straight session on Wednesday as sustained foreign fund outflows and a record-low rupee weighed on investor sentiment.

At around, 10:20 a.m. the Sensex declined 332.16 points or 0.39 percent to 84,806.11, while the broader Nifty slipped to 25,912.70, down 119.50 points or 0.46 percent.

Max Healthcare Institute, Shriram Finance and Coal India were among the major laggards in the Nifty50 pack, declining up to 3 percent, while Wipro and Tata Consultancy Services were the major gainers, rising up to 2 percent. Market breadth was also negative as about 1145 shares advanced, 2113 shares declined and 160 shares unchanged.

Key factors behind market decline

1) Rupee hits all-time low: The rupee opened at a fresh low of 89.96 against the US dollar and slipped to 90.1325 in early trade on December 3, tracking persistent equity outflows and uncertainty around the India-US trade deal. The currency had ended the previous session at 89.87.

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, noted &quot;Rupee slipped below the 90-mark for the first time, pressured by the absence of a confirmed India–US trade deal and repeated delays in timelines. Markets now want concrete numbers rather than broad assurances, leading to accelerated selling in the rupee over the past few weeks.&quot;

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the rupee’s continued depreciation and concerns of further weakness &quot;have contributed to the slow drifting down of the market&quot;, prompting FIIs to stay on the sell side.

Rupee falls to a new low, crosses 90-mark against US dollar

2) Persistent FII selling: Foreign Institutional Investors sold equities worth Rs 3,642.30 crore on Tuesday, marking the fourth consecutive session of outflows.

&quot;FII outflows, a record-weak rupee and pressure on banking stocks keep sentiment fragile,&quot; said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Stock Market LIVE Updates

3) Banking stocks decline: Banking shares saw broad-based selling across private and PSU lenders, as well as financial services stocks.

PSU bank shares fell after the government clarified it has no plans to raise the foreign direct investment limit in state-owned lenders from 20 percent to 49 percent. The Nifty PSU Bank index was down nearly 2 percent at 10.10 am. Private sector banks also traded lower, with Bandhan Bank and Kotak Mahindra Bank slipping up to 1 percent. Bank Nifty declined 0.4 percent due to index rejig.

&quot;Nifty’s correction of about 300 points from the record high can be seen as a technically driven move, influenced by the Bank Nifty rejig and concerns over the rupee’s depreciation,&quot; Vijayakumar said. He added that the reduction in the weight of HDFC Bank and ICICI Bank is a technical adjustment unrelated to fundamentals.

Technical view

Anand James, Chief Market Strategist at Geojit Financial Services, said Nifty’s slide extended towards 26,060 on Tuesday with “no signs of regrouping by bulls”.

He said the 25,860–25,700 zone now stands exposed, with fears of a decline towards 25,300. On the upside, resistance is expected at 26,087–26,111, while a move above 26,200 would be needed to signal a recovery.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

Can Nifty Hold Above 26,000 Amid Currency Jitters? Meesho IPO Opens | Opening Bell Live

Indian benchmark indices, Sensex and Nifty, are likely to see a muted start on December 3, with cues coming from GIFT Nifty, which was trading higher at around 26,195.50.

Track the latest updates on GIFT Nifty right here on Moneycontrol.

The Indian markets started the week on a strong note, hitting a fresh all-time high in the opening trade following positive global markets and above-estimate GDP at 8.2% (six-quarter high) in Q2FY26 added to the positive sentiments.

However, a 9-month low manufacturing growth rate of 56.6 in November and rupee depreciation erased all the intraday gains in the first half, and remained rangebound in the second half ahead of US and India central banks' interest rate decisions later this week.

At close, the Sensex was down 64.77 points or 0.08 percent at 85,641.90, and the Nifty was down 27.20 points or 0.10 percent at 26,175.75. BSE Midcap and smallcap indices ended flat.

The benchmark indices extended the gains on the third consecutive week and month, with BSE Sensex and Nifty rising 0.5 percent each in this week and adding 2% each in November.

Here is how financial markets across the globe fared overnight:

GIFT Nifty (Flat)

The GIFT Nifty is trading marginally lower at around 26,195.50, indicating a flat opening for the day.

Asian Equities (Rise)

Asian stocks traded within tight ranges early Wednesday, mirroring similar moves on Wall Street, as investors awaited a fresh catalyst while a rebound in cryptocurrencies lost steam.



US Equities (Up)

US stocks closed higher to record their sixth gain in seven sessions in muted trading on Tuesday, buoyed by gains in technology shares as expectations that the Federal Reserve will cut interest rates next week remain elevated.

The Dow Jones Industrial Average rose 185.13 points, or 0.39%, to 47,474.46, the S&amp;amp;P 500 gained 16.74 points, or 0.25%, to 6,829.37, and the Nasdaq Composite gained 137.75 points, or 0.59%, to 23,413.67.



US Bond Yield (Down)

The yield on 10-year Treasuries and 2-year Treasuries were trading lower at 4.07 percent and 3.49 percent, respectively.



Dollar Index (Down)

The dollar was becalmed on Wednesday, as other assets hogged the limelight, though investors looking ahead to 2026 were starting to position for U.S. rate cuts to weigh on the greenback.



Asian Currencies (Up)

Except for the Philippine Peso, all other Asian currencies were trading higher in the early trade on Wednesday, with the Indonesian Rupiah gaining the lost ground, followed bythe  Thai Baht, the South Korean Won, and the Japanese Yen.



Crude (Flat)

Oil steadied on Wednesday after declining in the previous session as traders assessed the state of the conflict between Russia and Ukraine.



Gold (Up)

Silver steadied near a record after rallying about 17% over the previous seven sessions as traders piled into bets for lower interest rates, while the market faced ongoing supply tightness. Gold was up.



Fund Flow Action

The Foreign Institutional Investors (FIIs) continued their selling on the fourth straight session on December 2 as they sold equities of Rs 3,642 crore, while Domestic Institutional Investors (DIIs) bought equities of Rs 4,645 crore on the same day.



Hope you're all set for today's trade. We wish you a profitable day ahead.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Tick: Top global cues to watch in today’s trade

Sensex Today | Stock Market LIVE Updates: Sun Pharma Advanced, Infosys, TCS, Dr Reddy's Labs are among most active shares on the NSE. BSE Midcap and smallcap indices are down 0.5% each.  Among sectors, except IT, Telecom, all other indices are trading in the red.

Stock Market LIVE Updates: Sensex sheds 250 pts, Nifty below 25,950; IT, telecom outshine

Live Blog

Sensex Today | Stock Market LIVE Updates: Sun Pharma Advanced, Infosys, TCS, Dr Reddy's Labs are among most active shares on the NSE. BSE Midcap and smallcap indices are down 0.5% each.  Among sectors, except IT, Telecom, all other indices are trading in the red.

George Heber Joseph, the Chief Investment Officer and Chief Executive Officer - Equity at ASK Investment Managers, sees the financial services sector as well-positioned within the current market cycle, supported by strong credit trends, healthy balance sheets, and structural drivers of financialisation.

His preference remains for large private banks and market infrastructure players such as exchanges and depositories. Large private banks continue to offer valuation comfort relative to historical averages, according to him.

Meanwhile, once uncertainty around the India–US trade deal clears, market attention is likely to shift toward broader macro and domestic drivers, he said in an interview to Moneycontrol.

Do you expect the prospects for the IT sector to be strong in the coming calendar year after several quarters of consolidation?

The Indian IT sector has navigated a challenging environment with commendable resilience, supported by operational efficiencies and healthy deal activity in areas such as AI and vendor consolidation. However, the broader backdrop remains uncertain. Global macro pressures, geopolitical risks, and softer discretionary spending continue to weigh on client decision-making, leading to muted growth trends.

While structural themes like AI adoption and digital transformation offer long-term relevance, their near-term monetization remains limited. Valuations have corrected and appear reasonable relative to historical averages, yet earnings visibility is still closely tied to macro stabilization rather than technology narratives alone. In this context, we maintain a cautious stance, focusing on companies with differentiated capabilities and strong execution frameworks.

Do you believe we are in an AI boom rather than an AI bubble?

We view global AI developments primarily as a macro indicator rather than a direct driver for Indian markets. Recent strong results from leading chipmakers provide reaffirmation of AI demand, but the sharp swings in market reactions highlight growing concerns around sustainability and profitability. The early phase of broad enthusiasm is fading, giving way to a more selective environment where fundamentals matter more than narratives.

While investment levels are significant—hyperscalers are committing billions to AI infrastructure—their strong balance sheets differentiate this cycle from past bubbles. However, risks remain rising costs, execution challenges, and energy constraints could pressure returns. For India, which has lagged in this year’s AI trade, any moderation in global AI exuberance could redirect flows toward broader emerging markets. In our view, this is a structural trend, but one that will evolve with greater scrutiny and discipline.

Do you see a major trade emerging in the financial space going forward? What is your order of preference within the sector?

We see the financial services sector as well-positioned within the current market cycle, supported by strong credit trends, healthy balance sheets, and structural drivers of financialisation. Our preference remains for large private banks and market infrastructure players such as exchanges and depositories.

Large private banks continue to offer valuation comfort relative to historical averages, alongside stable asset quality and consistent earnings delivery.

In capital markets, exchanges and depositories stand to gain from rising market cap-to-GDP ratios, deeper retail participation, and structural growth in demat accounts.

Overall, the sector combines cyclical tailwinds with structural themes, making it a core allocation in our portfolios at ASK Investment Managers, with emphasis on scale, governance, and execution strength.

Do you think the finalisation of the India–US trade deal will form a solid bottom for the market?

The finalisation of the India–US trade deal is undoubtedly a positive development for sentiment, as it reduces uncertainty around tariffs and strengthens long-term economic ties. However, markets rarely hinge on a single event. Broader factors—such as global growth trends, liquidity conditions, and domestic policy signals—will continue to play a larger role in shaping market direction.

While the deal may provide near-term stability and support sectors linked to trade and technology, it should be viewed as one piece of a much wider macro puzzle rather than a definitive bottom for equities.

What will be the major triggers for the market once the uncertainty around the trade deal clears?

Once uncertainty around the India–US trade deal clears, market attention is likely to shift toward broader macro and domestic drivers. Key triggers include policy signals from the upcoming Union Budget, trajectory of global interest rates, and corporate earnings momentum, particularly in sectors linked to consumption and investment.

Additionally, credit growth trends, capital expenditure revival, and continued financialisation of savings could reinforce sentiment. Global liquidity conditions and commodity price stability will also play an important role in shaping risk appetite. In short, while the trade deal may remove one layer of uncertainty, the next phase for markets will be driven by fundamentals rather than a single event.

Are you confident that the earnings upgrade cycle will pick up pace with the announcement of the December-quarter results?

The December-quarter results will provide important signals on demand trends and margin resilience, but the broader earnings trajectory will depend on macro conditions and sector-specific dynamics. Current indicators suggest stability in key areas like financials, while commentary across industries points to a gradual improvement rather than a sharp inflexion.

Our framework anticipates that any meaningful acceleration in upgrades is more likely in H2FY26, supported by policy tailwinds and improving sentiment, though this remains contingent on broader economic conditions. In short, the upcoming quarter is expected to set the tone rather than mark a decisive turning point.

Do you expect the Federal Reserve to proceed with a rate cut in the December policy meeting, even though Fed officials currently hold mixed views?

The upcoming Federal Reserve meeting remains a focal point for global markets. Recent data points—such as weaker US consumer confidence and signs of labour market strain—have fuelled expectations of policy easing, with CME FedWatch indicating a high probability of a 25 bps cut.

At the same time, Fed officials hold divergent views, reflecting the tension between inflation stability and rising unemployment. While strong voices within the Fed advocate for deeper cuts, the decision will ultimately hinge on incoming labour and inflation data. In our view, the probability of a cut is elevated, but it should be seen as part of a broader policy recalibration rather than a definitive turning point for risk assets.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Daily Voice: Large private banks remain valuation-friendly; CIO George Joseph bullish on exchanges, depositories

George Heber Joseph, the Chief Investment Officer and Chief Executive Officer - Equity at ASK Investment Managers, sees the financial services sector as well-positioned within the current market cycle, supported by strong credit trends, healthy balance sheets, and structural drivers of financialisation.

His preference remains for large private banks and market infrastructure players such as exchanges and depositories. Large private banks continue to offer valuation comfort relative to historical averages, according to him.

Meanwhile, once uncertainty around the India–US trade deal clears, market attention is likely to shift toward broader macro and domestic drivers, he said in an interview to Moneycontrol.

Do you expect the prospects for the IT sector to be strong in the coming calendar year after several quarters of consolidation?

The Indian IT sector has navigated a challenging environment with commendable resilience, supported by operational efficiencies and healthy deal activity in areas such as AI and vendor consolidation. However, the broader backdrop remains uncertain. Global macro pressures, geopolitical risks, and softer discretionary spending continue to weigh on client decision-making, leading to muted growth trends.

While structural themes like AI adoption and digital transformation offer long-term relevance, their near-term monetization remains limited. Valuations have corrected and appear reasonable relative to historical averages, yet earnings visibility is still closely tied to macro stabilization rather than technology narratives alone. In this context, we maintain a cautious stance, focusing on companies with differentiated capabilities and strong execution frameworks.

Do you believe we are in an AI boom rather than an AI bubble?

We view global AI developments primarily as a macro indicator rather than a direct driver for Indian markets. Recent strong results from leading chipmakers provide reaffirmation of AI demand, but the sharp swings in market reactions highlight growing concerns around sustainability and profitability. The early phase of broad enthusiasm is fading, giving way to a more selective environment where fundamentals matter more than narratives.

While investment levels are significant—hyperscalers are committing billions to AI infrastructure—their strong balance sheets differentiate this cycle from past bubbles. However, risks remain rising costs, execution challenges, and energy constraints could pressure returns. For India, which has lagged in this year’s AI trade, any moderation in global AI exuberance could redirect flows toward broader emerging markets. In our view, this is a structural trend, but one that will evolve with greater scrutiny and discipline.

Do you see a major trade emerging in the financial space going forward? What is your order of preference within the sector?

We see the financial services sector as well-positioned within the current market cycle, supported by strong credit trends, healthy balance sheets, and structural drivers of financialisation. Our preference remains for large private banks and market infrastructure players such as exchanges and depositories.

Large private banks continue to offer valuation comfort relative to historical averages, alongside stable asset quality and consistent earnings delivery.

In capital markets, exchanges and depositories stand to gain from rising market cap-to-GDP ratios, deeper retail participation, and structural growth in demat accounts.

Overall, the sector combines cyclical tailwinds with structural themes, making it a core allocation in our portfolios at ASK Investment Managers, with emphasis on scale, governance, and execution strength.

Do you think the finalisation of the India–US trade deal will form a solid bottom for the market?

The finalisation of the India–US trade deal is undoubtedly a positive development for sentiment, as it reduces uncertainty around tariffs and strengthens long-term economic ties. However, markets rarely hinge on a single event. Broader factors—such as global growth trends, liquidity conditions, and domestic policy signals—will continue to play a larger role in shaping market direction.

While the deal may provide near-term stability and support sectors linked to trade and technology, it should be viewed as one piece of a much wider macro puzzle rather than a definitive bottom for equities.

What will be the major triggers for the market once the uncertainty around the trade deal clears?

Once uncertainty around the India–US trade deal clears, market attention is likely to shift toward broader macro and domestic drivers. Key triggers include policy signals from the upcoming Union Budget, trajectory of global interest rates, and corporate earnings momentum, particularly in sectors linked to consumption and investment.

Additionally, credit growth trends, capital expenditure revival, and continued financialisation of savings could reinforce sentiment. Global liquidity conditions and commodity price stability will also play an important role in shaping risk appetite. In short, while the trade deal may remove one layer of uncertainty, the next phase for markets will be driven by fundamentals rather than a single event.

Are you confident that the earnings upgrade cycle will pick up pace with the announcement of the December-quarter results?

The December-quarter results will provide important signals on demand trends and margin resilience, but the broader earnings trajectory will depend on macro conditions and sector-specific dynamics. Current indicators suggest stability in key areas like financials, while commentary across industries points to a gradual improvement rather than a sharp inflexion.

Our framework anticipates that any meaningful acceleration in upgrades is more likely in H2FY26, supported by policy tailwinds and improving sentiment, though this remains contingent on broader economic conditions. In short, the upcoming quarter is expected to set the tone rather than mark a decisive turning point.

Do you expect the Federal Reserve to proceed with a rate cut in the December policy meeting, even though Fed officials currently hold mixed views?

The upcoming Federal Reserve meeting remains a focal point for global markets. Recent data points—such as weaker US consumer confidence and signs of labour market strain—have fuelled expectations of policy easing, with CME FedWatch indicating a high probability of a 25 bps cut.

At the same time, Fed officials hold divergent views, reflecting the tension between inflation stability and rising unemployment. While strong voices within the Fed advocate for deeper cuts, the decision will ultimately hinge on incoming labour and inflation data. In our view, the probability of a cut is elevated, but it should be seen as part of a broader policy recalibration rather than a definitive turning point for risk assets.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

10 out of 16 years NIFTY PSU BANK has given negative returns in December.

Type	R1	R2	R3	PP	S1	S2	S3
Classic	8,609.48	8,704.07	8,757.33	8,556.22	8,461.63	8,408.37	8,313.78
Fibonacci	8,612.70	8,647.59	8,704.07	8,556.22	8,499.74	8,464.85	8,408.37
Camarilla	8,528.45	8,542.01	8,555.56	8,556.22	8,501.35	8,487.79	8,474.24

INDEX CONTRIBUTION - NIFTY PSU Bank

Net Contribution

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