Indian Stock Market Today, 4 December 2025: Sensex, Nifty Snap 4‑Day Losing Streak as IT Stocks Rally, Rupee Briefly Breaches 90

The Indian stock market finally caught its breath on Thursday, 4 December 2025. After four straight sessions of declines, benchmark indices closed modestly higher, helped by a strong rebound in information technology (IT) stocks and late buying in select heavyweights, even as the rupee’s plunge past 90 against the US dollar kept traders on edge.

Market Snapshot: Mild Green After Four Red Sessions

BSE Sensex: 85,265.32, up about 158 points (0.19%)
Nifty 50: 26,033.75, up 47.75 points (0.18%), reclaiming the 26,000 mark ^[1]
Nifty Bank: 59,288.70, down 0.1%, underperforming the headline indices ^[2]
India VIX (volatility index): around 10.8, down roughly 3.5%, signalling a calm but complacent market ^[3]

Both indices had fallen for four sessions in a row, shedding roughly 0.7–0.9% from record highs hit last week. Today’s uptick was therefore more of a stabilisation move than an all‑out comeback. ^[4]

In the broader market, the mood was more cautious:

Nifty Midcap 100 slipped around 0.03%
Nifty Smallcap 100 fell roughly 0.24–0.26% ^[5]

Market breadth stayed weak. On the NSE, declining shares outnumbered gainers (roughly 1,746 losers vs 1,381 gainers), and more than 200 stocks hit new 52‑week lows versus only about 25 making new highs. ^[6]

IT Stocks Steal the Show as Rupee Weakens and OpenAI–TCS Buzz Builds

Sectorally, Thursday clearly belonged to IT:

Nifty IT jumped about 1.4%, hitting a multi‑month high, with all constituents in the green. ^[7]
Realty, FMCG and auto indices posted smaller gains, while media, PSU banks, energy and financials ended in the red. ^[8]

Two powerful tailwinds boosted IT:

A weaker rupee – A softer currency fattens the rupee value of dollar revenues for export‑heavy IT majors. Reuters noted that the IT index has been outperforming as the rupee slid to record lows and markets priced in a possible US rate cut as early as next week. ^[9]
OpenAI–TCS partnership chatter – Multiple reports said OpenAI is in advanced talks with Tata Consultancy Services (TCS) to lease at least 500 MW of AI data‑centre capacity from HyperVault, TCS’s new AI‑focused data‑centre venture, and to co‑develop “agentic AI” solutions for global enterprises. ^[10]
- Such a deal would effectively kick‑off an Indian chapter of OpenAI’s “Stargate” compute programme and could make OpenAI an anchor client for HyperVault. ^[11]
- TCS recently announced a $2 billion joint venture with TPG to build HyperVault AI data centres across India, targeting gigawatt‑scale AI infrastructure over the next few years. ^[12]

On the back of this, TCS shares jumped over 2%, hitting a three‑month high, and were among the biggest positive contributors to Nifty’s gain. ^[13]

Other major IT names like Tech Mahindra, Infosys, HCL Tech and Wipro also climbed around 1–2%, helping Nifty IT close at its strongest level in roughly four–five months. ^[14]

Top Gainers and Losers: IT & Insurance Up, IndiGo and Reliance Under Pressure

Across the Nifty 50 universe, breadth was positive (34 gainers vs 16 losers), but leadership was narrow. ^[15]

Nifty 50 – Major Gainers

According to closing data compiled by ET Now and broker updates, the top movers on the upside included: ^[16]

Tech Mahindra – among the day’s top gainer, buoyed by the broad rally in IT.
HDFC Life and SBI Life – life insurers gained over 1% amid expectations that softer yields and strong savings flows will support valuations.
TCS – up over 2% on the OpenAI partnership buzz. ^[17]
BEL, Adani Enterprises, Wipro, Coal India, Infosys and HCL Tech – each advanced more than 1% and added incremental points to Nifty. ^[18]

Outside the index, Petronet LNG rallied around 4.5% after signing a 15‑year binding term sheet with ONGC for ethane unloading, storage and handling services—seen as a key long‑term revenue driver. ^[19]

Nifty 50 – Major Losers

On the downside, pressure came primarily from aviation, metals and heavyweight financials: ^[20]

InterGlobe Aviation (IndiGo) fell about 2.4–2.8%, extending losses for a fifth straight session as widespread flight cancellations spooked investors. ^[21]
Reliance Industries, Hindalco, Maruti Suzuki and Titan slipped up to 1%, capping the headline indices’ upside. ^[22]
Large private banks including HDFC Bank, ICICI Bank and Kotak Mahindra Bank traded lower, dragging the Nifty Financial Services index and contributing to the Nifty Bank’s negative close. ^[23]

Another notable mover was Biocon, which dropped about 5% after the company said its board would consider buying out minority shareholders in its biosimilars arm, Biocon Biologics. Broker commentary suggested such a deal might require ₹10,000–15,000 crore of fresh capital and could meaningfully dilute existing shareholders—hence the sharp reaction. ^[24]

In the small‑cap space, Best Agrolife was among the brighter spots, surging around 7%, while construction PSU NBCC stayed in focus after reports of multiple order wins. ^[25]

Rupee Drama: Briefly Beyond 90, Then a Late‑Day Rescue

The currency market provided the real suspense.

The rupee opened near 90.41 per dollar, extending a six‑month slide and making fresh record lows after Wednesday’s close around 90.19. ^[26]
Intra‑day, it slipped as far as 90.42, before recovering sharply in the afternoon. ^[27]
By the close, the rupee had clawed back to around 89.97–89.99, still historically weak but back below the psychologically important 90 mark, helped by dollar selling from banks and expectations of RBI support. ^[28]

The Financial Express noted that analysts now expect a period of relative stability as traders wait for Friday’s RBI Monetary Policy Committee (MPC) decision and clarity on the central bank’s stance on the currency slide. ^[29]

FIIs Keep Selling, DIIs Keep Buying

One of the key themes of December so far has been persistent foreign selling offset by strong domestic inflows:

Foreign Institutional Investors (FIIs) sold about ₹1,944 crore of Indian equities in the cash segment on 4 December.
Domestic Institutional Investors (DIIs) bought roughly ₹3,661 crore, more than absorbing FII outflows for the day. ^[30]

According to Reuters, foreign portfolio investors have dumped roughly $933 million worth of Indian shares so far this week—more than double November’s entire net outflow of about $425 million. ^[31]

This push‑and‑pull between foreign and domestic money is keeping the market range‑bound: FIIs are booking profits near record highs and reacting to the weaker rupee, while domestic mutual funds and insurers continue to deploy steady inflows from SIPs and long‑term savers.

Macro Backdrop: Fitch Lifts India’s Growth Forecast, RBI Faces a Difficult Call

The market’s cautious tone is not just about global volatility. There’s a chunky domestic macro story unfolding in the background.

Fitch’s New India Growth View

Fitch Ratings on Thursday upgraded its FY26 GDP growth forecast for India to 7.4%, from 6.9% earlier. The agency cited: ^[32]

Stronger private consumption backed by improving real incomes and better consumer sentiment
Lower prices in many categories after GST rate cuts, which reduced taxes on hundreds of goods and pushed nearly all products into 0–18% slabs
An impressive run of recent data, with Q2 FY26 GDP growth at 8.2% (up from 7.8% in Q1) and headline inflation dropping to around 0.03% in October

Fitch also expects the RBI to cut the repo rate by 25 bps to 5.25% at the ongoing MPC meeting, arguing that ultra‑low inflation gives the central bank space for “one more” cut after 100 bps of easing in 2025 and a series of cash reserve ratio reductions. It then sees policy staying on hold for an extended period, with growth slowing modestly to 6.4% in FY27. ^[33]

RBI’s Tightrope: Growth, Inflation and a 90‑Rupee

The RBI’s decision on Friday is now a major near‑term trigger for equities, bonds and the rupee:

Growth is strong, inflation is unusually soft, and rating agencies are upgrading India’s outlook. ^[34]
At the same time, the rupee’s slide to 90 has raised questions about imported inflation, external vulnerability and how aggressively the RBI can ease policy without destabilising the currency. ^[35]

Analysts quoted by Reuters said the central bank faces a “tough task” balancing its dual mandate—supporting growth while keeping prices and financial stability in check—especially as foreign investors have been pulling money out of both Indian equities and debt. ^[36]

Global Cues: Asia, Europe and US Provide a Gentle Tailwind

External cues were moderately supportive:

In Asia, Japan’s Nikkei 225 gained over 2%, while Hong Kong’s Hang Seng and China’s Shanghai Composite also ended slightly higher, offering a positive hand‑off to Indian markets in the morning.
By late Indian trade, key European indices like DAX, CAC 40 and Euro Stoxx 50 were up 0.25–0.7%, while US benchmarks such as the Dow, S&P 500 and Nasdaq were trading with modest gains, according to intraday data tracked by 5paisa. ^[37]

The global narrative is still dominated by expectations of a US Federal Reserve rate cut in the upcoming meeting, which, if delivered, would be supportive for risk assets globally and particularly positive for rate‑sensitive growth sectors like IT.

Technical Picture: Nifty Range‑Bound, Pullback Lacks Conviction

Technical and derivatives analysts remain cautious about reading too much into today’s bounce.

Key Levels for Nifty 50

Analysts and brokerages highlighted the following zones for Friday, 5 December and the near term: ^[38]

Immediate resistance:
- 26,100–26,150 is seen as a stiff supply zone.
- A cluster of call‑writer positions between 26,100 and 26,300 suggests any move above this band will need strong buying to sustain.
Bigger breakout level:
- A decisive close above 26,300 could open the door towards 26,500–26,600 in the coming sessions.
Support zones:
- First support around 25,900–25,950, where the 20‑day moving average is nearby.
- Deeper support at 25,800, with some analysts flagging 25,842 (the recent swing low) as a critical level. A fall below 25,800 could extend the correction towards 25,650–25,500.

ET Now’s technical column summed it up by saying the pullback “lacks strength” as Nifty remains below its shorter moving averages and continues to churn within a 25,900–26,200 consolidation band. ^[39]

Bank Nifty Still Subdued

For Bank Nifty, the undertone is softer:

Closing at 59,288.70, the index has immediate support near 58,860 and stiff resistance between 60,000 and 60,120, according to multiple broker views. ^[40]
Until it convincingly moves above the 60,000 region, analysts expect any rally in banking stocks to attract profit‑booking rather than fresh aggressive buying.

With India VIX near 10.8 and options data showing heavy call writing around at‑the‑money strikes, many traders expect a low‑volatility, range‑bound session on Friday—unless the RBI springs a surprise. ^[41]

Outlook for Tomorrow (5 December 2025): What Traders Are Watching

Broker notes and market commentaries published after the close largely converge on a few themes for Friday’s trade: ^[42]

Range‑bound Opening Likely
- Gift Nifty is hovering close to current Nifty futures levels, signalling a flat to mildly positive start unless overnight global news changes the tone.
All Eyes on RBI MPC Outcome
- A 25‑bp rate cut in line with Fitch’s expectations could be seen as supportive for growth but may keep the rupee under watch.
- A status‑quo decision with a cautious message on the rupee might calm FX markets but disappoint some rate‑cut hopefuls.
- In either case, volatility is expected to spike around the policy announcement.
IT vs Financials Tug‑of‑War
- IT stocks have the momentum—helped by rupee weakness, expectations of Fed easing and the OpenAI–TCS story.
- Banks and financials, facing FII selling and pressure from a weak currency, remain the biggest swing factor for the index.
Rupee Trajectory
- Whether the rupee stabilises below 90 or revisits record lows will be crucial for FII flows, bond yields and overall risk sentiment.
Stock‑Specific Action
- Defence names could stay active as Russian President Vladimir Putin’s state visit continues and speculation around new defence deals persists. ^[43]
- Names like TCS, Petronet LNG, IndiGo, Biocon and PSU plays such as NBCC are likely to remain in the spotlight after today’s big moves and news flow. ^[44]

Bottom Line

On 4 December 2025, India’s stock market finally managed to stem a four‑day slide, but the rebound was cautious and uneven. A booming IT sector, fuelled by a weak rupee and the prospect of a landmark OpenAI–TCS partnership, helped Nifty 50 reclaim 26,000 even as banks, smallcaps and the currency market reminded investors that risk has not disappeared. ^[45]

With RBI’s policy decision, FII flows, the rupee’s path, and global central‑bank moves all converging in the coming days, traders are likely to remain nimble, favouring buy‑on‑dips in quality names while bracing for short bursts of volatility.

This article is for informational purposes only and is not investment advice. Please consult a certified financial adviser before making investment decisions.