Markets remained volatile as the Reserve Bank of India’s Monetary Policy Committee (MPC) began its three-day meeting, where a 25-basis-point rate cut is being widely speculated. The committee will announce its decision on December 5. The RBI’s repo rate currently stands at 5.50%.
Sentiment was further tempered by the upcoming India-Russia Annual Summit, scheduled for December 4–5, during which Russian President Vladimir Putin is expected to hold key discussions in New Delhi.
On the Sensex, 20 of the 30 constituents ended in the red. Heavyweights including BEL, M&M, SBI, Titan, NTPC, HUL, Bajaj Finserv, Maruti Suzuki, and Adani Ports led the decline. Weakness across auto, financials, and metal counters added pressure on the indices.
Global markets offered mixed signals. Tokyo’s Nikkei surged 1.6% and South Korea’s Kospi rose 1.2%, but Hong Kong’s Hang Seng slipped 1.1% and Shanghai’s Composite eased 0.3%. Overnight, Wall Street closed higher, with the Dow Jones, Nasdaq, and S&P 500 logging modest gains.
Foreign institutional investors continued to pare holdings, offloading equities worth ₹3,642 crore on December 2. In contrast, domestic institutional investors remained strong buyers, purchasing ₹4,645 crore worth of shares, extending their firm support seen through November.
On Tuesday, the Sensex had already shed 503 points, while the Nifty declined 143 points, setting the tone for cautious trade through the week. Analysts expect volatility to persist until the RBI policy outcome and major global events offer clearer direction for the markets.
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