Key equity indices slipped for the fourth straight session as investors booked profits ahead of the RBI's policy decision later this week. A weakening rupee and steady FII outflows added to the cautious mood. Global cues offered little direction, with markets mixed as investors evaluated upcoming policy decisions from the Fed and the ECB amid heightened currency volatility. IPO activity also remained in focus through the day.

The Nifty finished below the 26,000 mark, dragged by sharp losses in PSU banks after the government told Parliament it has no plan to raise the FDI limit in state-run lenders. Consumer Durables and Auto stocks also retreated. IT shares, however, bucked the pressure, gaining ground on the back of the softer rupee.

The S&P BSE Sensex declined 31.46 points or 0.04% to 85,106.81. The Nifty 50 index fell 46.20 points or 0.18% to 25,986. In three trading sessions, the Sensex slipped 0.72%, while the Nifty fell 0.88%.

Adani Enterprises (down 2.26%), Mahindra & Mahindra (down 1.79%) and SBI (down 1.69%) were major drags today.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index declined 0.95% and the S&P BSE Small-Cap index fell 0.43%.

The market breadth was weak. On the BSE, 1,481 shares rose and 2,681 shares fell. A total of 159 shares were unchanged.

The rupee hit a record low, slipping past the 90-per-dollar mark as persistent foreign outflows continued to weigh on sentiment. In the foreign exchange market, the rupee slipped further against the dollar, trading at 90.1975 compared with 89.9650 in the previous session.

Economy:

The seasonally adjusted HSBC India Services PMI Business Activity Index rose from 58.9 in October to 59.8 in November, indicating a historically strong expansion in output and a faster pace of growth than the previous month.

Meanwhile, the HSBC India Composite PMI Output Index stood at 59.7 in November, pointing to robust growth. However, the decline from October's 60.4 reading signaled the slowest expansion since May.

Numbers to Track:

The yield on India's 10-year benchmark federal paper was advanced 0.58% to 6.541 as compared with the previous close of 6.503.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 90.1900 compared with its close of 89.9650 during the previous trading session. The currency slipped to a fresh record low after breaching the 90-mark.

MCX Gold futures for 5 December 2025 settlement rose 0.26% to Rs 127,671.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.30% to 99.04.

The United States 10-year bond yield fell 0.12% to 4.083.

In the commodities market, Brent crude for January 2025 settlement added 76 cents or 1.22% to $63.21 a barrel.

Global Markets:

Most European shares declined on Wednesday as investors awaited the Federal Reserve's decision, which is scheduled on 10 December 2025.

Asian market ended mixed after Wall Street saw a tech-fueled recovery and a cryptocurrency rally.

South Korea's revised third-quarter GDP numbers indicated that country's economy grew at 1.8% year on year, compared to 1.7% in the initial estimate, data from the central bank showed Wednesday.

Australia's GDP expanded 2.1% year on year, marking its strongest expansion since the third quarter of 2023, but fell short of the widely reported 2.2% expected growth rate.

Overnight in the U.S., the Dow Jones Industrial Average gained 0.39%, while the S&P 500 climbed 0.25% and the Nasdaq Composite advanced 0.59%.

Stocks in Spotlight:

The Nifty PSU Bank index dropped 3.07% to 8,253.20 after the government ruled out any proposal to raise the foreign direct investment limit in public sector banks.

Indian Bank fell 5.52%, Punjab National Bank slipped 4.31% and Canara Bank declined 3.77%. Bank of India lost 3.73%, Punjab and Sind Bank shed 3.58% and Bank of Baroda was down 3.17%. Union Bank of India retreated 2.90%, Central Bank of India eased 2.28%, UCO Bank slipped 2.22% and Bank of Maharashtra fell 2.03%. State Bank of India declined 1.71%, while Indian Overseas Bank ended 1.22% lower.

Blue Cloud Softech Solutions (BCSSL) added 2.71% after the company said that it has received a major data annotation and AI training services order from USA-based Stratos Forge Inc. Based on this performance, Stratos Forge Inc has now awarded BCSSL the full scale project rollout with a commercial value of Rs 110.08 crore.

Angel One slipped 5.21% after the company reported that its gross client acquisition declined 16.6% year-on-year (YoY) to 0.50 million in November 2025 from 0.60 million in November 2024.

Bajaj Finance fell 0.50%. The company on Tuesday sold 2% of its stake in subsidiary Bajaj Housing Finance in the open market through a bulk deal. The transaction, carried out on 2 December 2025, is part of the broader plan to meet minimum public shareholding norms laid out for the housing finance arm. After Tuesday's transaction, Bajaj Finance's shareholding in the housing finance arm stands at 86.7032%.

Indian Railway Finance Corporation (IRFC) declined 1.42%. The company announced that it has signed a loan agreement with Sumitomo Mitsui Banking Corporation (SMBC) to raise an External Commercial Borrowing (ECB) loan valued at the Japanese Yen (JPY) equivalent of $300 million.

Mahindra Lifespace Developers rose 0.25%. The company said that it has been selected as the preferred development partner for a major residential redevelopment project in Matunga, Mumbai. The project spans approximately 1.53 acres, with a gross development value of around Rs 1,010 crore.

Quality Power Electrical Equipment added 2.65% after the company announced that it has secured an order worth Rs 13.90 crore for the supply of coil products.

Gujarat Pipavav Port advanced 1.40% after the firm signed a non-binding memorandum of understanding (MoU) with NYK India to upgrade RoRo infrastructure at Pipavav Port.

MOIL rose 0.40%. The company said that it has recorded 1.65 lakh metric tonnes (LMT) of manganese ore production in November 2025, showing a 1% year-on-year (YoY) increase.

IPO Update:

Meesho received bids for 64,75,80,690 shares as against 27,79,38,446 shares on offer, according to stock exchange data at 16:45 IST on Wednesday (3 December 2025). The issue was subscribed 2.33 times. The issue opened for bidding on 3 December 2025 and it will close on 5 December 2025. The price band of the IPO is fixed between Rs 105 and 111 per share.

Vidya Wires received bids for 12,30,64,416 shares as against 4,33,34,009 shares on offer, according to stock exchange data at 16:45 IST on Wednesday (3 December 2025). The issue was subscribed 2.84 times. The issue opened for bidding on 3 December 2025 and it will close on 5 December 2025. The price band of the IPO is fixed between Rs 48 and 52 per share.

Aequs received bids for 14,17,87,560 shares as against 4,20,26,913 shares on offer, according to stock exchange data at 16:45 IST on Wednesday (3 December 2025). The issue was subscribed 3.37 times. The issue opened for bidding on 3 December 2025 and it will close on 5 December 2025. The price band of the IPO is fixed between Rs 118 and 124 per share.

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