CHENNAI: Indian equities spent most of Thursday (December 4), moving in a narrow and cautious range as weak global cues, foreign fund outflows and a sinking rupee kept sentiment restrained through the session. The day began on a subdued note, with early indicators pointing to a softer open after GIFT Nifty signalled pressure on benchmark indices. At the opening bell, the Sensex slipped by around 100 points and the Nifty drifted below the 26,000 mark as investors reacted to persistent selling by overseas funds and nervousness in global markets.
Through the morning, the tone remained hesitant. A record low for the rupee added to the caution, prompting traders to stay defensive in sectors sensitive to currency swings. Despite the weakness, select pockets of buying helped stabilise the market. As of about 1:15 PM the BSE Sensex was hovering near 85,438 points and the NSE Nifty 50 was trading close to 26,084, showing a modest recovery from the morning slump.
IT stocks in particular saw renewed interest, driven by expectations that a weaker rupee could support earnings in the coming quarters. Auto counters also managed to find strength, helping offset declines in energy, metals and banking.
By midday, the benchmarks recovered part of their early losses as investors stepped in to buy quality stocks at lower levels. The rebound was modest but steady, reflecting a willingness among domestic institutional investors to support the market even as foreign outflows continued. The broader indices, however, lacked clear direction, and mid- and small-cap shares displayed uneven movement, with gains in technology and consumer stocks partly overshadowed by weakness in cyclicals.
In the second half of the session, markets held on to the recovery but did not gain enough momentum to turn decisively higher. Traders remained wary of global uncertainties, including shifting expectations on interest rates in major economies and the near-term volatility in crude oil prices. Attention also stayed fixed on domestic macro signals, particularly the rupee’s trajectory and the evolving stance of the Reserve Bank of India ahead of upcoming policy updates.
By late afternoon, the Sensex and Nifty were trading slightly above the day’s lows, supported mainly by technology, auto and select financial names. However, the overall mood stayed guarded. Market participants preferred to wait for clearer cues before taking large positions, and intraday movements reflected a blend of bargain hunting and profit-taking.
The session ultimately closed with mixed undertones: mild strength in a few heavyweight sectors, persistent pressure from global and currency-related factors, and a broader market that remained hesitant to break out either way. Thursday’s trade illustrated a market that is stabilising after recent volatility but still searching for a firm directional trigger.