The Indian equity benchmarks extended their losing streak to a fourth consecutive session on Wednesday, December 3, closing marginally lower amid persistent pressure on the rupee and sustained selling activity by foreign portfolio investors (FPIs).
Benchmarks Extend Losses Amid Broad Weakness
Despite a late-session recovery attempt, the key indices failed to close in positive territory. The Nifty 50 ended at 25,958, marking a decline of 0.18% from its previous close. The Sensex settled at 85,091, down by 0.05%. The broader market performance was notably weaker, indicating a risk-off sentiment among investors.
The midcap and smallcap segments bore the brunt of the selling pressure. The Nifty Midcap 100 index fell by 1%, while the Nifty Smallcap 100 index dropped 0.71%. This underperformance comes after both the Nifty and Sensex had recently scaled fresh all-time highs, triggering a phase of profit booking that has now led to a 0.70% correction from those record peaks.
Key Stocks That Dragged the Market Lower
A cluster of stocks from the financial, technology, and new-age sectors featured prominently on the list of top losers for the day. This sell-off reflects a combination of sector-specific concerns and broader market caution.
Public sector banks were among the hardest hit, with Indian Bank and Bank of India witnessing significant declines. Financial services player Angel One and stock exchange BSE also saw heavy selling. Other notable losers included Central Depository Services (CDSL) and mobility platform OLA.
Drivers Behind the Sustained Weakness
Market analysts point to two primary factors for the extended softness. First, the Indian rupee has remained under consistent pressure against the US dollar, creating headwinds for foreign investment flows. Second, overseas investors have continued to be net sellers in the Indian markets, pulling out capital and contributing to the downward pressure on stock prices.
The consecutive days of decline suggest that investors are taking money off the table after the recent rally, opting to book profits while assessing global macroeconomic cues and domestic valuations. The market's focus is now shifting to upcoming economic data and central bank policies for fresh directional cues.
