The Indian stock market experienced a sharp market sell-off on Tuesday, December 2, 2025, as both benchmark indices closed firmly in the red, wiping out recent gains. The Nifty drop saw the index close below the critical 26,050 mark, while the Sensex 503 points down loss marked one of the steepest single-day falls in recent trading.
(Source: BSE, NSE)
Final Market Closing Figures
The final Stock Market Closing figures clearly illustrate the magnitude of the Nifty drop and the wider market sell-off during the December 2 , 2025 market:
- BSE Sensex: Closed at 85,138.27, registering a loss of 503.63 points (or 0.59 percent). Its intraday low was 85,053. The index opened at 85,325.51.
- NSE Nifty50: Settled at 26,032.20, a loss of 143.55 points (or 0.55 percent), closing below 26,050. The Nifty swung sharply between a high of 26,154.60 and a low of 25,997.85. The index opened at 26,087.95.
- Broader Markets: The negative sentiment was pervasive. The Nifty Midcap 100 tumbled 0.22 percent, and the Nifty Smallcap 100 ended 0.55 percent lower. A total of 2,007 stocks declined versus 1,084 that advanced.
(Source: The Economic Times, ET-NOW)
Five Core Factors Behind the Drop
The steep Sensex 503 points down loss was attributed to a confluence of domestic and global pressures:
- Profit-taking After Peaks: The Indian stock market saw aggressive profit-taking after the Sensex and Nifty both touched fresh 14-month peaks on Monday, advancing roughly 0.5% to 86,159.02 and 26,325.80, respectively. Investors chose to book gains, triggering the Nifty drop.
- Rupee Weakness Deepens: The Indian rupee sank to a fresh record low, weighed down by sustained dollar demand from corporates and importers. The currency fell 0.28% to 89.79 per dollar, slipping past Monday’s record low of 89.75 and briefly touching 89.85 intraday. The decline was driven by persistent dollar demand from corporates, importers, and foreign portfolio investors, prompting the RBI to intervene to prevent a breach of the 90-per-dollar mark.
- Global Stocks Muted: Weak global cues contributed to the market sell-off. Traders digested a cryptocurrency slump and a bond selloff. The US market ended in the red yesterday, and S&P 500 futures were steady after overnight losses. Bitcoin, despite a rebound, remained 30% below its October high at around $87,000.
- Persistent FII Selling: Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth a little over ₹1,171 crore on December 1, 2025. This FII selling pressure continued a trend from November, during which they sold shares worth over ₹11,592 crore. This sustained outflow dampened sentiment, pushing the Nifty drop.
- Pressure on Banking Stocks & RBI Caution: Banking and financial stocks were the biggest drags. The Nifty Private Bank index fell up to 0.4% due to index weight recalibration. Key constituents like HDFC Bank and ICICI Bank reacted to the index weight reshuffle triggered by SEBI’s directive to reduce concentration risk in index-heavy futures baskets. Fading expectations of a Reserve Bank of India rate cut also kept traders cautious ahead of the policy decision on Friday.
(Source: The Economic Times, ET-NOW)
Corporate Movers and Economic Data
Despite the Nifty drop and the heavy Stock Market Closing in the red, a few stocks and macro indicators showed resilience:
- Vodafone Idea shares rallied 2.11% on optimism that the AGR relief framework may be finalised by end-2025.
- SPARC share price surged 20% after a favourable US court ruling regarding its Sezaby Priority Review Voucher (PRV).
- Asian Paints Shares jumped over 3 percent to emerge as the top Nifty 50 gainer on December 2.52-Week High: The stock hit a fresh 52-week high of ₹2,959.90 apiece in the afternoon session. The Rise was attributed to a positive brokerage call by UBS, which lifted investor sentiment.
- Meesho’s ₹2,439 crore ($292 million) IPO anchor book was oversubscribed over 32 times, drawing nearly ₹80,000 crore in commitments. Bids were led by SBI Mutual Fund, Tiger Global, and BlackRock, alongside global giants like GIC and BlackRock.
- India’s current account deficit fell significantly to $12.3 billion (1.3% of GDP) in Q2FY26 from $20.8 billion (2.2% of GDP) a year ago, signalling a healthier external position.
(Source: BusinessLine, Moneycontrol)
The Bottomline
The December 2 , 2025 market session delivered a stern stock market closing for investors, characterised by a sharp market sell-off that drove the Sensex 503 points down and pushed the Nifty below 26,050. While aggressive profit-taking after recent peaks was the immediate catalyst, the underlying vulnerability was exposed by sustained FII selling and the Indian rupee’s dip to a record low.
The day’s Nifty drop was compounded by pressure on banking stocks due to regulatory rebalancing and caution ahead of the RBI policy. Moving forward, the Indian stock market will be keenly watching global market stability, particularly in the US, and awaiting domestic policy clarity.
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