Indian stock indices decline, analysts point to profit booking; Sensex, Nifty down 0.5-0.6% each

NEW DELHI: Indian stock indices settled lower on Tuesday, extending marginal losses from the previous session, in what analysts attributed to continued profit booking at higher levels. The Nifty ended 143 points lower, while the Sensex was down by 504 points, data showed.

“Among sectors, buying interest was seen in selective auto and paint stocks, whereas the capital market index lost the most, shedding over 1 per cent,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.

After a gap-down open, the market has been consistently facing selling pressure at higher levels. “We are of the view that, intraday, the market texture is weak, but a fresh selloff is possible only if the index dismisses the 26,000/85000 level,” Chouhan said.

“Overall, markets are likely to remain in consolidation mode, reacting to domestic and global cues, with US jobs data expected to guide the Fed’s policy outlook next week. Rate-sensitive sectors will stay in focus ahead of the RBI policy outcome on Friday,” said Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.

The next Monetary Policy Committee (MPC) meeting is scheduled for December 3-5, 2025. At the last policy meet in October, the Monetary Policy Committee (MPC) of the RBI, in a unanimous decision, kept the policy repo rate unchanged at 5.5 per cent. The RBI governor had noted that headline inflation had moderated considerably, providing the MPC with confidence to maintain the rate stance.

Vinod Nair, Head of Research, Geojit Investments Limited, echoed that domestic markets continued to witness profit booking amid worries over the weakening rupee and persistent FII outflows.

“In the near term, fading expectations of an RBI rate cut owing to strong GDP data and the uncertainty around US-India trade discussions may keep investors on edge. Even so, solid domestic macro fundamentals and a strengthening earnings outlook for the second half of the fiscal year are likely to lend support going forward,” Nair added.

Today, the Indian rupee weakened further to a fresh record low of just shy of 90 per US dollar, pressured by sustained foreign outflows and elevated global crude prices, analysts said.

Dharmakirti Joshi, Chief Economist, CRISIL Limited told ANI he sees the rupee appreciation around the corner. “My belief is that if you get a trade deal (with the US), I think the depreciated rupee will again start appreciating, and I think it also depends quite a lot on what the global financial conditions are and our expectation is that rupee will strengthen from these levels in the months ahead,” Joshi said.

So far, the rupee has depreciated by 5 per cent this year. (ANI)