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Below the Views on Morning Market 04th December 2025 by Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

Market is currently in the midst of two opposing forces: one negative and the other positive. Sharp depreciation of above 5% in the rupee and RBI’s policy of non-intervention to support the currency is a negative from the FII’s perspective. This has pushed the FIIs back to the sustained selling mode pulling the Nifty down by 340 points from the recent record high. The positive factor is India’s improving fundamentals - robust economic growth, low inflation, supportive monetary and fiscal policies and indications of steadily improving corporate earnings. It is important to understand that the negative factor may weigh on the market in the near-term, but the positive factor will dominate in the mid-term enabling the market to resume its upward journey. Therefore, this near-term currency-induced weakness can be used by long-term investors to accumulate high quality large and midcap stocks.

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