The Indian stock market extended its losing streak for the fourth consecutive session on Wednesday, December 3, pulling back further from the record highs scaled earlier in the week. Despite a late-session rebound, the benchmark indices failed to recover into positive territory, closing marginally lower in a volatile trading day.
Market Performance and Key Drivers
The S&P BSE Sensex slipped by 31 points, or 0.04%, to settle at 85,107. The broader Nifty 50 index ended 46 points, or 0.18%, lower at 25,986. The trading session was largely subdued and range-bound for most of the day, with a late bout of buying in the final half-hour helping trim some of the losses.
Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd., attributed the weak sentiment to multiple factors. "Sentiment was dampened by a weakening rupee, which hit a record low of 90.13 against the dollar, heightening concerns around import costs and triggering FII outflows," he said. He added that caution ahead of the Monetary Policy Committee (MPC) meeting and mixed global cues also contributed to the subdued mood.
Sectoral performance was mixed. Auto, energy, and fast-moving consumer goods (FMCG) sectors led the decline, putting pressure on the indices. However, resilience in information technology (IT) stocks and a recovery in private banking shares helped limit the overall downside. The broader market underperformed the benchmarks, with the midcap and smallcap indices declining sharply in the range of 0.71% to 0.91%.
Stocks in the Spotlight
Several individual stocks were in focus due to company-specific developments:
Reliance Industries: Its subsidiary, Reliance Strategic Business Ventures (RSBVL), entered into a partnership with Surrey County Cricket Club for the Oval Invincibles team in The Hundred. RSBVL purchased a 49% stake in Oval Invincibles for GBP 60.27 million from the England and Wales Cricket Board (ECB).
RailTel Corporation of India: The company secured a contract worth ₹48.78 crore from the Mumbai Metropolitan Region Development Authority (MMRDA).
RVNL: The company announced it received a Letter of Acceptance valued at ₹145.35 crore from Southern Railway for a traction power project.
ONGC: The Ministry of Petroleum & Natural Gas extended the term of Chairman Arun Kumar Singh by one more year through a contract-based reappointment, effective December 7.
Pine Labs: The Noida-based fintech firm reported a net profit of ₹5.97 crore for the second quarter, a significant turnaround from a loss of ₹32 crore in the same period last year. Its revenue grew 17.8% to ₹650 crore.
Indian Energy Exchange: The company reported a 17.7% year-on-year increase in monthly electricity trade volume (excluding TRAS) to 11,409 MU for November.
Nector Lifesciences: The Board approved a share buyback worth up to ₹81 crore at ₹27 per share, with December 24 set as the record date.
Pace Digitek: Its subsidiary, Lineage Power Pvt Ltd, received an order worth ₹99.71 crore from Advait Greenergy Pvt Ltd.
JK Cement: The company commissioned its 3.3 MnTPA Clinker Line-2 at the Panna plant in Bihar, effectively doubling the facility's clinker capacity to 6.60 MnTPA.
IndiGo: The Directorate General of Civil Aviation (DGCA) initiated a probe into the large-scale flight disruptions at the airline, seeking clarification on the causes and a plan to prevent further cancellations and delays.
Market Outlook and Implications
The consecutive days of decline indicate the market is in a consolidation phase after its recent rally. The record low for the Indian rupee remains a critical concern for foreign investors and import-heavy sectors, potentially leading to continued volatility. Investors are likely to remain cautious, closely monitoring the outcome of the MPC meeting for cues on future interest rate trajectories and liquidity conditions. The performance of global markets and crude oil prices will also influence domestic sentiment in the near term.
