Sensex, Nifty slip as profit-taking and record-low rupee trigger broad market pullback

CHENNAI: Indian equities ended lower on Tuesday (December 2) as investors locked in profits after the recent record-setting rally and weak global cues weighed on sentiment. The Sensex fell a little over 500 points to close near 85,138, while the Nifty slipped around 140 points to end close to 26,032. The decline was broad-based, with most major sectors finishing in the red and market breadth turning decisively negative across mid- and small-cap spaces. Financial stocks led the slide, with heavyweights in banking and diversified financial services facing sustained selling pressure. Large caps such as major private banks and key index constituents dragged both benchmarks lower. Weakness was further reinforced by continued foreign fund outflows, a trend that has persisted despite domestic indices touching fresh peaks in recent sessions. Sentiment was also dampened by the rupee’s sharp depreciation, as the currency slipped to record lows near the 90-per-dollar mark, prompting the central bank to intervene. The slide in the rupee raised concerns over imported inflation and margin pressures for select sectors, adding to the cautious tone among global and domestic investors alike. Despite the broader decline, a few stocks in defensives and select consumption-linked sectors managed to gain, underscoring ongoing rotation into comparatively stable pockets of the market. Pharma and a handful of autos held firm, even as most other sectors surrendered to profit-taking. Analysts noted in their reports that after hitting successive highs, the market lacked incremental triggers to sustain upward momentum, resulting in a natural consolidation phase. Investors are now awaiting cues from the upcoming monetary policy review, global risk sentiment, and signals on foreign fund flows. While the near term may remain volatile, the underlying medium-term outlook remains supported by domestic growth prospects and steady local institutional buying. Overall, the session reflected a cooling-off period following a frenetic advance, with traders turning cautious until greater clarity emerges on global headwinds, currency stability, and central bank commentary.