Indian equity benchmarks surrendered early gains to close in the red on Monday, December 01, 2025, as a combination of a weakening rupee and persistent foreign fund outflows dampened investor sentiment. The markets opened strong, buoyed by robust GDP data, but failed to sustain the momentum.
Market Retreats from Record Highs
Both the Nifty 50 and the S&P BSE Sensex started the session on a positive note, even scaling fresh record peaks. This initial optimism was fueled by the release of a stronger-than-expected second-quarter GDP growth figure. However, the rally was short-lived. The indices quickly reversed direction, sliding into negative territory as the trading session progressed.
Key Factors Behind the Sell-Off
Several headwinds converged to pull the markets down. The primary pressure came from the Indian rupee, which touched a fresh all-time low against the US dollar. This currency weakness, coupled with continued selling activity by foreign institutional investors (FIIs), created a bearish undertone. Additionally, market participants scaled back their expectations of an interest rate cut by the Reserve Bank of India (RBI) in its upcoming policy meeting, further eroding confidence.
By the closing bell, the Nifty 50 had fallen 150 points from its intraday high to settle at 26,175, marking a decline of 0.10%. The Sensex also dropped 531 points from its peak to finish at 85,625, down 0.09% for the day.
Notable Stock Movers
Despite the broader market weakness, several stocks managed to post significant gains, emerging as the day's top performers. Wockhardt, JM Financial, TVS Motor, Hindustan Copper, and Paytm (One 97 Communications) were among the prominent gainers on December 01. On the flip side, other stocks faced selling pressure and featured on the list of top losers for the session, highlighting the mixed and stock-specific nature of the trading day.
The market's pullback after hitting record levels underscores the ongoing sensitivity to global currency movements and foreign capital flows. Investors are likely to remain focused on the RBI's policy decision and further developments related to the rupee's trajectory in the coming sessions.
