Indian equities witnessed sharp weakness on Wednesday, with the Sensex slipping over 300 points and the Nifty falling more than 100 points to trade below the 25,950 mark. Broader markets suffered deeper cuts, with the Nifty Midcap index dropping over 500 points, signalling widespread selling pressure.
1. Rupee crashes to a record low of 90.14
The biggest drag on market sentiment today is the Indian Rupee hitting a fresh all-time low of 90.14 against the US Dollar.
A falling rupee increases import costs, triggers inflation concerns, and raises fears of foreign outflows — all of which directly hurt equity sentiment.
- A weaker rupee is also pressuring oil & gas, FMCG, and consumer stocks
- Meanwhile, IT stocks are rallying, as software exporters benefit from a weaker INR
2. Banking stocks under pressure
The Nifty Bank index is down over 150 points, extending Tuesday’s decline.
The index has slipped more than 800 points from its recent peak and is now testing a key support zone near 59,000.
Weakness in major PSU banks and private lenders is amplifying market pressure, given the heavyweight nature of the banking index.
3. Broad-based selling in midcaps and FMCG
The Nifty Midcap index falling 500+ points reflects intense profit-booking across the broader market.
FMCG and consumer stocks are also sliding sharply, contributing to the negative market breadth.
4. Investors cautious as multiple IPOs open today
Three major IPOs — including Meesho — opened for subscription on Wednesday.
Large IPO weeks often lead to:
5. PMI data shows mixed signals
Fresh PMI numbers for November indicate:
- HSBC/S&P Global Services PMI: 59.8 (up from 58.9)
- HSBC/S&P Global Composite PMI: 59.8 (down from 60.4)
While services activity improved, the slight cooling in the composite PMI suggests moderation in overall private-sector growth momentum. Markets are reacting cautiously to this softer macro backdrop.
The stock market is likely down due to a combination of currency shock, banking index weakness, midcap selling, FMCG pressure, IPO-related liquidity shift, and cautious sentiment following mixed PMI data. Despite the broad decline, IT stocks are the only major outperformers, supported by the sharply weaker rupee.
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