Indian equity markets are gearing up for a positive start on Tuesday, December 2, 2025, following a session of consolidation near all-time peaks. The benchmarks, after scaling fresh 14-month highs on Monday, faced resistance due to profit-taking and foreign fund outflows, setting the stage for today's anticipated rebound.
Market Momentum and Key Levels
The early indicator, GIFT Nifty futures, was trading at 26,330.5 as of 08:14 a.m. IST, suggesting an opening for the Nifty 50 index above its previous close of 26,175.75. On Monday, both the Nifty and the Sensex had surged approximately 0.5% each to hit unprecedented intraday highs of 26,325.80 and 86,159.02, respectively. However, the indices could not sustain these levels till the closing bell.
Analysts attribute the recent rally to a confluence of positive factors: improving corporate earnings, stable economic growth, consistent domestic inflows, and supportive government and monetary policies. Despite the surge, the markets have yet to surpass the record closing levels achieved in September 2024.
Analyst Views and Investor Activity
Vatsal Bhuva, a technical analyst at LKP Securities, noted, "Monday marked the third consecutive weak close, indicating extended consolidation at record-high levels along with selling pressure." Market experts believe that for the rally to find a firmer footing, two critical triggers are needed: progress on a potential U.S.-India trade deal and companies delivering on their earnings forecasts in the ongoing quarter.
A significant development was the activity of institutional investors. Data showed that Foreign Portfolio Investors (FPIs) turned net sellers, offloading Indian shares worth 11.71 billion rupees on Monday. In a contrasting move, Domestic Institutional Investors (DIIs) provided strong support by purchasing equities worth 25.59 billion rupees.
Broader Economic Context and Stocks in Focus
The Indian rupee touched a record low on Monday, pressured by subdued trade flows and uncertainty surrounding the U.S.-India trade discussions. Globally, Asian markets presented a mixed picture, while Wall Street ended a five-session winning streak as investors await a Federal Reserve rate decision.
Domestically, all eyes are now on the Reserve Bank of India's (RBI) monetary policy announcement scheduled for Friday, December 5. Sectors sensitive to interest rates will be in the spotlight. The better-than-expected GDP growth for the September quarter has led to doubts about further rate cuts, with the central bank's earlier dovish stance now under scrutiny.
Key stocks to watch include:
- Bajaj Finance, which plans to sell a 2% stake in Bajaj Housing Finance in a deal valued at 17.4 billion rupees, at a 9.6% discount.
- Hero MotoCorp, reporting a robust 31.5% year-on-year increase in total two-wheeler sales for November.
- Bharat Dynamics, securing a substantial order worth 24.62 billion rupees from the Indian Army.
- Raymond Realty, launching a new project in Mumbai's Bandra-Kurla Complex (BKC) with a revenue potential of 20 billion rupees.
