Key equity indices posted modest gains today, breaking a four-day losing streak. Sentiment, however, remained fragile as the weak rupee, steady FII outflows and uncertainty ahead of the RBI's policy decision kept investors cautious. Volatility increased due to the weekly derivatives expiry, while firm crude prices added pressure by stoking concerns over higher import costs and inflation. Traders also monitored Russian President Vladimir Putin's India visit on 4 and 5 December. The Nifty held above 26,000, supported by strength in IT and FMCG stocks.

The S&P BSE Sensex, advanced 158.51 points or 0.19% to 85,265.32. The Nifty 50 index added 47.75 points or 0.18% to 26,033.75. In the past four trading sessions, the Nifty and Sensex declined 0.88% and 0.72%, respectively.

TCS (up 1.54%), Infosys (up 1.24%) and Bajaj Finance (up 0.61%) boosted the indices today.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index declined 0.19% and the S&P BSE Small-Cap index fell 0.32%.

The market breadth was negative. On the BSE, 1,807 shares rose and 2,314 shares fell. A total of 190 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 3.52% to 10.82.

Fitch Ratings Upgrade:

Fitch Ratings revised India's GDP growth forecast for FY26 to 7.4%, from 6.9% projected earlier. Fitch says the growth reflects solid real income gains, buoyant consumer sentiment and the impact of recent GST reforms. The agency expects growth to moderate to 6.4% in FY27 as the economy moves closer to its potential, with domestic demand, especially consumer spending, remaining the primary engine. Public investment is seen slowing, while private investment is expected to pick up in the latter half of FY27 as financial conditions ease.

Fitch also flagged external vulnerabilities, noting that India faces an effective tariff rate of around 35% on its exports to the US, one of the highest among major economies. Any trade agreement to reduce this burden would help lift external demand, the agency said.

Numbers to Track:

The yield on India's 10-year benchmark federal paper was added 0.08% to 6.531 compared with the previous close of 6.526.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 89.9700 compared with its close of 90.1500 during the previous trading session.

MCX Gold futures for 5 December 2025 settlement fell 0.44% to Rs 1,29,890.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.02% to 98.86.

The United States 10-year bond yield advanced 0.71% to 4.087.

In the commodities market, Brent crude for January 2025 settlement advanced 16 cents or 0.26% to $62.83 a barrel.

Global Markets:

European shares advanced while most Asian indices ended higher after Wall Street gained on the latest jobs data that raised hopes the Federal Reserve could cut interest rates next week.

Payroll processor ADP reported that private companies cut 32,000 workers in November, compared with 47,000 additions in October, and well below the 40,000 increase that was widely reported.

Markets are reportedly pricing in an 89% chance of a cut when the Federal Reserve meets on Dec. 9-10, significantly higher than rate-cut bets just a couple of weeks ago.

Overnight, the Dow Jones Industrial Average gained 408.44 points, or 0.86%, to finish at 47,882.90. The S&P 500 traded up 0.30% to end the day at 6,849.72, while the Nasdaq Composite added 0.17% to settle at 23,454.09.

Stocks with exposure to the artificial intelligence trade were the biggest drag on U.S. key benchmarks Wednesday stateside, after a media report stated that Microsoft was cutting software sales quotas tied to artificial intelligence.

Microsoft reportedly refuted the claims in the report, which led the stock to recover slightly in after-hours trading.

Stocks in Spotlight:

The Nifty IT index rose 1.41% to 38,360.25, extending its two-day gain to 2.18%. Coforge climbed 2.83%, Mphasis added 1.75% and Persistent Systems gained 1.74%. Tech Mahindra advanced 1.51%, while Tata Consultancy Services and LTIMindtree increased 1.48% each. Oracle Financial Services Software was up 1.23%, followed by Wipro at 1.02%, Infosys at 0.92% and HCL Technologies at 0.91%.

A weak rupee typically supports IT stocks because the sector earns most of its revenue from exports.

Pine Labs shed 2.28%. The company has reported a net profit of Rs 6 crore in Q2 FY26 as against a net loss of Rs 32 crore posted in Q2 FY25. Revenue from operations grew 18% YoY to Rs 650 crore, on the back of robust growth of issuing, affordability and online payments businesses, which continue to outpace growth in the in-store payments business, in line with the company's growth strategies.

Biocon declined 5.34%. The company said that its board will meet on Saturday, 06 December 2025, to consider a proposal for raising of funds by way of issuance of commercial paper through private placement.

Petronet LNG climbed 4.48% after the company announced a long-term agreement with ONGC for developing and operating ethane import and handling infrastructure at Dahej.

Mukka Proteins added 1.19% after the company announced that its joint venture (JV) with Hardik Gowda and MS Jathin Infra secured a Rs 474.89 crore contract from Bengaluru Solid Waste Management (BSWML).

Josts Engineering Company rallied 4.25% after the company announced that it has bagged an order worth Rs 5.62 crore from the North Bihar Power Distribution Company.

Pace Digitek shed 0.47%. The company said that its material subsidiary, Lineage Power, has secured an order worth Rs 99.71 crore from Advait Greenergy for the supply of lithium iron phosphate (LFP) battery energy storage systems (BESS) and related equipment.

Rail Vikas Nigam (RVNL) rose 0.27%. The company announced that it has received a letter of acceptance (LoA) worth Rs 145.35 crore from Southern Railway for a traction power project. The scope includes design, supply, erection, testing, and commissioning of Scott-connected traction substations, power quality equipment, switching posts, a 2x25 kV feeding system, and SCADA and automatic fault locator systems in the Jolarpettai'Salem section of the Salem Division.

Lupin rose 0.55%. The company announced that it has entered into an exclusive licensing agreement with U.S.-based biosimilar specialist Valorum Biologics for its biosimilar Armlupeg (pegfilgrastim-unne). Under the terms of the agreement, Valorum will handle the commercialization and distribution of Armlupeg in the United States, while Lupin will be responsible for manufacturing and supplying the product. Lupin will receive an upfront license fee along with royalty payments on net sales.

IPO Update:

Meesho received bids for 2,20,36,00,410 shares as against 27,79,38,446 shares on offer, according to stock exchange data at 16:42 IST on Thursday (4 December 2025). The issue was subscribed 7.93 times. The issue opened for bidding on 3 December 2025 and it will close on 5 December 2025. The price band of the IPO is fixed between Rs 105 and 111 per share.

Aequs received bids for 46,21,04,880 shares as against 4,20,26,913 shares on offer, according to stock exchange data at 16:42 IST on Thursday (4 December 2025). The issue was subscribed 11 times. The issue opened for bidding on 3 December 2025 and it will close on 5 December 2025. The price band of the IPO is fixed between Rs 118 and 124 per share.

Vidya Wires received bids for 35,36,61,120 shares as against 4,33,34,009 shares on offer, according to stock exchange data at 16:42 IST on Thursday (4 December 2025). The issue was subscribed 8.16 times. The issue opened for bidding on 3 December 2025 and it will close on 5 December 2025. The price band of the IPO is fixed between Rs 48 and 52 per share.

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