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Below the Quote on Daily Market Commentary for 02nd December 2025 By Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Nifty ended lower by 144 points at 26,032 (–0.6%), weighed down by broad-based weakness and nervousness ahead of the RBI’s interest rate decision on 5^th December. Most sectors closed in the red, with private banks and financial services leading the decline, down 0.7% and 0.8% respectively. In contrast, the PSU Bank index gained 0.5%, marking its second consecutive day of gains. Other rate-sensitive sectors—including Auto, Realty and Consumer Durables—saw profit booking amid cautious market sentiment. Monthly auto volumes for Nov’25 exceeded market expectations, with wholesales showing strong post-festive growth across segments, supported by festive order backlogs and normalization of dealer inventory. The key monitorable ahead will be retail demand trends from Jan’26, though the underlying consumption sentiment remains positive. On the macro front, investors will track comments from the US Federal Reserve and JOLTS jobs data today, followed by US non-farm payrolls and India’s Services PMI tomorrow. The INR weakened further to a fresh record low of 89.92, pressured by sustained foreign outflows and elevated global crude prices. Overall, markets are likely to remain in consolidation mode, reacting to domestic and global cues, with US jobs data expected to guide the Fed’s policy outlook next week. Rate-sensitive sectors will stay in focus ahead of the RBI policy outcome on Friday.

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