The Indian stock market witnessed a rally on Thursday after an initial weak start. The Sensex rose by 100 points to reach 85,167. Despite selling by foreign investors, Domestic Institutional Investors (DIIs) supported the market through buying. The Rupee remained weak at 90.41 per dollar.
Stock Market: On Thursday, December 4, 2025, the Indian stock market opened with a weak start amidst Asian cues. In the morning, BSE's Sensex opened lower at 84,987 points, while the Nifty-50 opened at 25,981. Within minutes of opening, the market gained momentum, and both key indices moved into the green. Strong support to the market came from buying in auto and IT sector shares, and the initial decline gradually recovered.
At 9:41 AM, the Sensex was trading up by 60.28 points or 0.07 percent at 85,167.09. Similarly, the Nifty-50 was also trading with a modest gain of 27.60 points or 0.11 percent at 26,013. Crossing the psychological level of 26,000 is being considered a positive signal for investors.
Activity of Foreign and Domestic Investors
Selling by Foreign Institutional Investors (FIIs) continues unabated. On Wednesday, FIIs sold shares worth Rs 3,207 crore. In the last five sessions, FIIs have collectively sold Indian equities worth Rs 13,071.4 crore. On the other hand, Domestic Institutional Investors (DIIs) are continuously buying. They purchased shares worth Rs 4,730.4 crore on Wednesday. This buying by DIIs is helping to balance the selling pressure from FIIs and is providing support to the market.
Rupee at New Record Low
On Thursday, the Rupee opened 22 paise weaker at 90.41 per dollar. On Wednesday, the Rupee had for the first time fallen below the psychological level of 90 per dollar. Several reasons are behind the Rupee's decline, including continuous capital outflow, uncertainty over a trade deal with the US, rising demand for the dollar, and limited intervention by the RBI. This year, the Rupee has depreciated by over 5 percent against the dollar, making it Asia's worst-performing currency. It took only 773 trading sessions for the Rupee to move from 80 to 90 per dollar.
Mixed Trend in Asian Markets
Asian markets showed mixed trends on Thursday. Japan's Nikkei 225 rose by 0.3 percent, while the TOPIX Index strengthened by 0.33 percent. South Korea's KOSPI fell by 0.45 percent, but the KOSDAQ saw a gain of 0.12 percent. Gains in US markets, driven by improved employment data on Wall Street, provided support to Asian markets. Investors are also keeping an eye on the Federal Reserve's upcoming policy meeting.
Gains in US Markets
US stock markets recorded gains on Wednesday. According to data from payroll processor ADP, private companies laid off 32,000 employees in November, compared to 47,000 in October. This figure was lower than the estimated 40,000 and was considered a positive sign for investors. Among the major indices, the Dow Jones closed with a gain of 0.86 percent, the S&P 500 with 0.30 percent, and the Nasdaq Composite with 0.17 percent. Investors are now hoping that the likelihood of interest rate cuts might increase at the Federal Reserve's December 9–10 meeting.
Market Outlook
The rally in the Indian stock market after an initial fall showed that investors are active in taking advantage of opportunities. A positive environment prevails in the market due to buying in auto, IT, metal, and banking sector stocks. Despite selling by foreign investors and a weakening Rupee, the support from domestic investors is helping to keep the market direction stable. Investors should keep an eye on the movement of indices and the performance of key stocks in today's session.
