Sensex Ends Flat, Nifty Slips Below 26,200 Amid Mixed Cues

Benchmark indices started on a strong note and logged fresh record highs on December 1, 2025. However, the momentum fizzled soon, as expectations of a December rate cut by the Reserve Bank of India (RBI) weakened following stronger-than-expected Q2 gross domestic product (GDP) growth and a sharp depreciation in the rupee. Both the Sensex and the Nifty 50 remained range-bound for most of the session today and ended flat-to-negative, closing just below their record levels.

At close, the Sensex was at 85,641.90, down 64.77 points, or 0.08 per cent, while the Nifty 50 was at 26,175.75, down 27.20 points, or 0.10 per cent.

India’s GDP expanded by 8.20 per cent in the September quarter, exceeding all expectations, according to government data.

Sentiments also remained subdued on account of muted Goods and Services Tax (GST) collection in November. Government data released earlier today showed that Gross GST revenue in November 2025 reached Rs 1,70,276 crore, marginally up by 0.70 per cent from Rs 1,69,016 crore in November 2024.

Further, India’s manufacturing activity slowed to a nine-month low in November 2025, as growth in sales and output softened amid reports of tougher market conditions. The seasonally adjusted HSBC India Manufacturing PMI slipped to 56.60 in November from 59.20 in October. A PMI reading above 50 indicates expansion, while a score below 50 signals contraction. This also contributed to the muted tone in today’s trade.

Meanwhile, the rupee further weakened against the dollar, hitting a new record low. The currency slipped to 89.58 in late trade, down 0.26 per cent from the previous close, further pressuring equities.

Small-Caps Outperform

In the broader market, small-cap indices outperformed the benchmarks, with the Nifty Smallcap 100 closing with 0.25 per cent gains. The Nifty Midcap 100 remained unchanged, while the Nifty 500 closed flat-to-negative. The Nifty Microcap 250, which tracks the 250 most liquid and actively-traded stocks beyond the Nifty 500 constituents, closed 0.18 per cent lower.

Auto, IT Leads, Realty Lags

Among sectors, auto, metal, IT, and public-sector banks led gains, while realty, healthcare and pharma ended in the red. Nifty Auto gained 0.79 per cent, followed by Nifty Metal with 0.58 per cent gain, Nifty IT with 0.39 per cent gain, and Nifty PSU Bank with 0.25 per cent gain. Nifty Realty lost 1.02 per cent, emerging as the top sectoral loser.

Nifty Bank, which tracks 12 public and private sector banking stocks, closed 0.12 per cent lower at 59,681.35, near its record levels.

Nifty 50: Top Gainers & Losers

Among the 50 constituents in the Nifty index, UltraTech Cement rose 3.56 per cent, Tata Motors Passenger Vehicles gained 1.88 per cent, and Maruti Suzuki India advanced 1.42 per cent, emerging as the top gainers of the session. Apart from these, Bharat Electronics rose 1.28 per cent, Eicher Motors jumped 1.16 per cent, Kotak Mahindra Bank rose 1.15 per cent, while HCL Technologies gained 1.13 per cent.

On the other hand, Max Healthcare tumbled 2.67 per cent, Interglobe Aviation 2.19 per cent, Bajaj Finance plunged 1.71 per cent, and Sun Pharma slipped 1.23 per cent, turning out to be the day’s top losers. Adani Enterprises, Tata Consumer Products, Trent, Apollo Hospitals, Mahindra & Mahindra were also among the losers.

Stock Market Outlook

Market participants will be closely tracking the RBI's monetary policy committee (MPC) meeting, which is scheduled to be held from December 3-5. Participants will also be tracking HSBC India Services PMI data due on December 3.

Further, the week will also see Russian President Vladimir Putin visiting India on December 4-5 for the 23rd India-Russia Annual Summit, and at a time when India is about to close a trade deal with the US. Apart from these, US Manufacturing PMI is also due to be release later today, which will also be a key data to watch out for.