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Key gauges end lower on Tuesday
Dec-02-2025

Indian equity benchmarks ended lower by over half percent on Tuesday due to selling in Banking, Industrials and Energy stocks and persistent foreign fund outflows. The decline was primarily driven by a sharp contraction in the IIP data, weakness in the rupee, and caution ahead of the upcoming US Fed and RBI policy decisions later in the week.

Some of the important factors in trade:

RBI rate cut likely in December amid low inflation: Report by credit rating agency CareEdge said the RBI could announce a 25-basis point repo rate cut in its upcoming December monetary policy meeting, driven by a sharp decline in inflation and strong growth momentum. 

India in a 'sweet spot', GDP growth to be over 7% in FY26: New FICCI President Anant Goenka said India is 'in a sweet spot' to sustain growth, and the GDP is expected to expand by over 7 per cent this financial year on the back of strong macro fundamentals and ongoing reforms.

FDI equity inflows in India rise 18% to $35.18 billion in H1FY26: The government in its latest data has showed that Foreign direct investment (FDI) equity inflows into India rose 18 per cent to $35.18 billion during April-September this fiscal year (H1FY26). 

India's gross GST collections slip to Rs 1.70 lakh crore in November 2025: The government data showed that India's gross Goods and Services Tax (GST) collections slipped to a year-low of Rs 1.70 lakh crore in November 2025, growing at a meagre 0.7 per cent year-on-year on a base lowered by the exclusion of proceeds from cess on sin and luxury goods. 

Global front: European markets were trading higher with Ukraine peace talks and upcoming U.S. economic data in focus. Asian markets settled mostly higher despite a sell-off in bitcoin and fears about repeat of the yen carry trade unwinding. 

Finally, the BSE Sensex fell 503.63 points or 0.59% to 85,138.27 and the CNX Nifty was down by 143.55 points or 0.55% to 26,032.20.    

The BSE Sensex touched high and low of 85,553.51 and 85,053.00 respectively. There were 9 stocks advancing against 21 stocks declining on the index.   

The broader indices ended in red; the BSE Mid cap index fell 0.14%, while Small cap index was down by 0.49%.

The top gaining sectoral indices on the BSE were Telecom up by 0.65%, Consumer Durables up by 0.45%, TECK up by 0.14% and Auto up by 0.06%, while Bankex down by 0.75%, Industrials down by 0.49%, Energy down by 0.45%, Power down by 0.42% and Utilities down by 0.40% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 3.11%, Maruti Suzuki up by 0.83%, Bharti Airtel up by 0.59%, Hindustan Unilever up by 0.55% and Bajaj Finance up by 0.54%. On the flip side, Axis Bank down by 1.29%, HDFC Bank down by 1.25%, Reliance Industries down by 1.25%, ICICI Bank down by 1.24% and Bharat Electronics down by 1.01% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) in its latest data has said that the reduction in the trade deficit, higher services exports and higher remittances by the diaspora has helped the country narrow its current account deficit to $12.3 billion or 1.3 per cent of GDP in the September quarter of current financial year (Q2FY26). The country’s current account deficit stood at $20.8 billion, or 2.2 per cent of the GDP in the year-ago period. However, it was just $2.4 billion or 0.2 per cent of the GDP in the preceding June quarter of this fiscal (Q1FY26). In the first half of FY26, the current account deficit declined to $15 billion or 0.8 per cent of GDP from $25.3 billion or 1.3 per cent of GDP in the year-ago period.

Further, RBI stated that the merchandise trade deficit has declined to $87.4 billion in the July-September quarter of this fiscal as compared to $88.5 billion in the same period a year ago. Meanwhile, net services receipts increased to $50.9 billion from $44.5 billion a year ago. The country’s services exports have increased, especially in computer services. Further, the personal transfer receipts under secondary income account, mainly representing remittances by Indians employed overseas, rose to $38.2 billion in the reporting quarter from $34.4 billion in the year-ago period. During the September quarter of FY26, the net outgo on the primary income account, mainly reflecting payments of investment income, increased to $12.2 billion from $9.2 billion in Q2 FY25.

On the foreign investment front, RBI said that the Foreign direct investment (FDI) in Q2 FY26 stood at $2.9 billion as against a net outflow of $2.8 billion in the corresponding period of the last fiscal. However, there was a net outflow of $5.7 billion during the Q2FY26 by foreign portfolio investment (FPI) as compared to a net inflow of $19.9 billion in Q2 FY25. Besides, net inflows under external commercial borrowings reduced to $1.6 billion in Q2 FY26 from $5 billion in the year-ago period. Moreover, there was a decline in the deposits by NRIs during the September quarter to $2.5 billion from $6.2 billion in the year-ago period. On a Balance of Payments basis, there was a depletion of $10.9 billion to the foreign exchange reserves against an accretion of $18.6 billion in Q2 FY25.

CNX Nifty touched high and low of 26,154.60 and 25,997.85 respectively. There were 15 stocks advancing against 35 stocks declining on the index.    

The top gainers on Nifty were Asian Paints up by 3.15%, Dr. Reddy's Lab up by 1.30%, Maruti Suzuki up by 0.92%, Bharti Airtel up by 0.87% and SBI Life Insurance Company up by 0.68%. On the flip side, Interglobe Aviation down by 1.62%, ICICI Bank down by 1.17%, Reliance Industries down by 1.14%, HDFC Bank down by 1.07% and Axis Bank down by 1.05% were the top losers. 

European markets were trading higher; UK’s FTSE 100 increased 35.52 points or 0.37% to 9,738.05, France’s CAC rose 32.4 points or 0.4% to 8,129.40 and Germany’s DAX gained 159.76 points or 0.68% to 23,749.20.

Asian markets settled mostly higher on Tuesday despite Wall Street’s fall overnight. Seoul shares rose sharply, buoyed by gains in major chipmakers and automakers after US Commerce Secretary Howard Lutnick confirmed that the general tariff rate on imports from South Korea, which includes autos, would drop to 15% from 25%, effective November 1, under a bilateral trade and investment agreement. Japan’s Nikkei gained slightly, even as yields on 10-year government bonds in Japan climbed to the highest level in 17 years amid growing speculation that the Bank of Japan could raise interest rates as soon as this month. However, Chinese shares dropped as investors awaited readouts from the annual agenda-setting Central Economic Work Conference and the December Politburo meeting.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,897.71

-16.30

-0.42

Hang Seng

26,095.05

61.79

0.24

Jakarta Composite

8,617.04

68.25

0.79

KLSE Composite

1,630.60

6.03

0.37

Nikkei 225

49,303.45

0.17

0.00

Straits Times

4,537.96

11.74

0.26

KOSPI Composite

3,994.93

74.56

1.90

Taiwan Weighted

27,564.27

221.74

0.81
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