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Below the Quote on Daily Market Commentary for 03rd December 2025 By Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equities extended their losing streak on Wednesday, as persistent foreign fund outflows and the Indian rupee’s plunge to a record low beyond the Rs.90 mark dampened sentiment. The Nifty slipped below the 26,000 mark, ending at 25,986, down 46 points (-0.2%), with investors turning risk-averse near lifetime highs amid currency volatility. Broader markets underperformed, with the Nifty Midcap100 declining 1% and the Smallcap100 falling 0.7%. Sectorally, the tone was weak, with most indices ending in the red.  Nifty IT gained 0.8% as export-oriented technology stocks benefited from the sharp rupee depreciation. On the flip side, Nifty PSU Bank slumped nearly 3% after the government clarified it has no plans to raise the foreign direct investment (FDI) limit in state-owned banks from 20% to 49%. Nifty Auto also dropped over 1.2% amid profit booking. Globally, focus remains on geopolitical and trade developments. Russian President Putin’s visit to India on December 4–5 is expected to highlight areas including defence, civil nuclear cooperation, and narrowing the trade deficit. Both countries aim to scale bilateral trade to USD 100 billion by 2030, up from USD 68.7 billion in FY25. Separately, India is pushing to seal its trade pact with the European Union, with officials meeting this week to fast-track discussions. In the primary market, three IPOs — Meesho, Aequs and Vidya Wires — opened for subscription today, keeping investor interest active in new listings. The three issuers collectively looking to raise approximately Rs.6,643 crore. Key economic releases today include U.S. nonfarm employment data and global Services PMI prints, which will be crucial in shaping expectations around the U.S. interest rate trajectory. In the near term, we expect markets to trade range-bound, tracking currency trends, RBI monetary policy cues, and developments on the trade negotiation front.

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