Sensex‍‌‍‍‌‍‌‍‍‌ Tumbles 500 Points; ₹2 Lakh Crore Wiped Out; Markets Recoil as Profit Booking Gains Pace

Tuesday, December 2, 2025: Indian equity markets extended their losses for a second successive session as investors opted to book profits at the higher levels. The BSE Sensex was down 504 points, or approximately 0.59%, and closed at 85,138. The Nifty 50 was also down and finished at 26,032 – a fall of 144 points, or approximately 0.55%.

A mix of factors, such as the dollar rally against the rupee, continued FII sell-offs and a wait-and-watch mood building up in view of the RBI monetary policy announcement, pushed the investors into risk-off mode.

Broader Markets Also Witness Mild Downtrend

The strength of the broader markets wasn’t sufficient to offset the sharp decline of the benchmark indices, as the BSE-Midcap Index and the BSE-Smallcap Index closed marginally better, down 0.14% and 0.49%, respectively.

However, the total market capitalisation of the BSE stocks dropped by nearly ₹1.82 lakh crore to ₹472.59 lakh crore.

Mixed Stock-Level Performance: Some Winners, Many Losers

Only fifteen Nifty 50 stocks managed to defy the broad negative trend and close the trading session in the green. After a rating upgrade, Asian Paints surged 3.15% and was the top gainer. Besides appreciation, Dr Reddy’s Laboratories, Maruti Suzuki, Bharti Airtel, and SBI Life Insurance Company were also among the top gainers.

The heavyweight HDFC Bank, ICICI Bank, Reliance Industries, Axis Bank, and Adani Enterprises slumped to hefty losses among the top five.

Sectorally, all major segments except for Pharma were trading in the red. Especially, the banking and financial services segments had hard times as they were influenced by the recent change of sectoral weights on the exchange.

What’s Driving the Sell-Off & What to Watch Next

Markets are also awaiting the outcome of the three-day monetary policy meeting of the RBI, which can have a strong impact on investors’ sentiments in the near term. Although many investors had a tough day today, some market participants believe that strong domestic macro fundamentals and an encouraging earnings trend in the second half of the fiscal year could support the market against further ‍‌‍‍‌‍‌‍‍‌declines.

Further, the impact of the upcoming Federal Reserve’s announcement on monetary policy (the rate cut announcement) as well as the much-anticipated trade deal between India and the US should be the critical factors that will influence the market movements in the upcoming weeks.

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