IT Rally Lifts Markets as Late Buying Keeps Sensex and Nifty Flat Despite Rupee’s Record Low

Sensex and Nifty Struggle for Direction as Rupee Hits Record Low and Final-Hour Buying Limits Losses

The Indian equity market ended Wednesday’s session on a flat yet cautious note as benchmark indices Sensex and Nifty wavered throughout the day, pressured by weak global cues, persistent foreign fund outflows, and heightened anxiety ahead of the RBI’s monetary policy decision. Despite a sharp sell-off during mid-session, late buying in select heavyweights helped limit losses, allowing the market to close with only a slight negative bias.

The sentiment remained fragile as the Indian rupee breached the 90-per-dollar mark for the first time, marking a fresh record low and raising renewed concerns about valuation pressures, inflationary risks, and foreign investor returns.

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Benchmark Indices End Flat; Final-Hour Buying Helps Trim Intraday Losses

The S&P BSE Sensex slipped 31 points (0.04%) to close at 85,106.81, further extending its decline from Monday’s record high of 86,159.02. The Nifty 50 dropped 46 points (0.18%) to end at 25,986, staying below the psychologically important 26,000 mark.

Both indices have now declined for four consecutive sessions, driven by sustained profit-booking and cautious positioning by investors in the run-up to the RBI policy announcement.

Markets began the day flat but weakened gradually as bears took control, dragging the Nifty below 25,900 during early afternoon trade. However, a wave of final-hour buying in IT, private banks, and select pharmaceuticals helped the market recover part of its losses.

Midcap and smallcap stocks underperformed sharply, with the BSE Midcap Index falling 1% and the Smallcap Index slipping 0.4%, reflecting broader market weakness.

Rupee Breaches 90 for the First Time, Closing at a Fresh Record Low

One of the day’s most significant developments was the Indian rupee’s sharp slide past 90, hitting an intraday low of 90.29 per dollar before settling at 90.19, down 32 paise from the previous close. This marks the fourth consecutive session of record lows for the currency.

Analysts attribute the selloff to persistently strong dollar demand, concerns over global interest rates, and aggressive FPI outflows from equities and debt markets.

The rupee’s steep depreciation is also raising red flags for private equity investors, particularly foreign funds planning near-term exits through IPOs or secondary stake sales. Industry experts warn that the faster-than-expected 5% decline in the rupee this year could distort valuation expectations, impact dollar-denominated returns, and potentially delay monetization plans by global investors.

IT Stocks Shine as Rupee Weakens; Broader Sectoral Trends Remain Mixed

Among all sectors, IT stocks outperformed, benefiting from the steep fall in the rupee, which boosts export-driven earnings for the sector. The Nifty IT index rose 0.76%, supported by gains in Wipro, TCS, and HCL Tech.

The broader sectoral trend remained mixed:

Top Gaining Sectors

• IT (+0.76%)

• Media (+0.25%)

• Pharma (+0.01%)

Top Losing Sectors

• Consumer Durables (-1.57%)

• Auto (-1.20%)

• FMCG (-0.80%)

• Realty (-0.75%)

• Oil & Gas (-0.62%)

PSU banks were the biggest drag, shedding nearly 3%, while metal, power, capital goods and energy stocks also declined amid currency volatility and weakening global sentiment.

Top Gainers and Losers: IT and Banks Lead Gains, While Healthcare and Consumer Stocks Decline

The day’s top performers included Wipro (+1.61%), Hindalco (+1.46%), TCS (+1.41%), ICICI Bank (+1.38%), and HDFC Bank (+1.04%). These counters benefited from strong institutional buying and sectoral support.

On the losing side, Max Healthcare (-2.91%), Tata Consumer (-2.25%), Adani Enterprises (-2.14%), Bharat Electronics (-2.03%), and Shriram Finance (-1.83%) dragged the indices lower.

Stock-Specific Movers: Corporate Announcements Trigger Individual Action

Several individual stocks witnessed sharp moves on company-specific developments:

• Max Estates gained after launching a premium residential project in Gurugram.

• Bharat Forge slipped 1% following a drop in Class 8 truck orders.

• Angel One fell 5% as gross client acquisition dropped 17% YoY in November.

• RPP Infra rose 2% after securing a ₹25 crore road project in Tamil Nadu.

• Gujarat Pipavav Port gained 1.2% after signing an MoU with NYK India to enhance its RoRo infrastructure.

52-Week Action: Over 280 Stocks Hit New Lows, Reflecting Market Under-Currents

A notable sign of broader market stress was visible as over 280 stocks hit fresh 52-week lows, including:
KNR Construction, Colgate-Palmolive, Power Finance Corporation, SJVN, CG Consumer, Page Industries, Chambal Fertilisers, Mahanagar Gas, Praj Industries, BASF, Clean Science, Cohance Life, Bata India and Deepak Nitrite.

Meanwhile, more than 80 stocks hit new 52-week highs, including:
Asian Paints, Vedanta, eClerx Services, Can Fin Homes, Jamna Auto, Cupid, Jindal Poly and Hitachi Energy.

The sharp divergence highlights the rotational nature of market activity, with investors shifting to defensives and high-earning stability stocks amid rising volatility.

India VIX Declines as Market Awaits RBI Policy; Market Breadth Weakens

The India VIX, the market’s volatility gauge, slipped 0.13% to end at 11.21, indicating controlled but cautious sentiment ahead of the RBI announcement.

Market breadth, however, remained weak:

• Advancers: 1,052

• Decliners: 2,074

• Stocks at 52-Week High: 28

• Stocks at 52-Week Low: 228

This reflects underlying weakness that the headline indices alone do not fully capture.

Crude Oil Edges Higher Amid Global Tensions, but Surplus Concerns Cap Gains

Crude prices rose moderately as traders questioned the likelihood of quick progress in Russia-Ukraine negotiations that could ease sanctions. However, expectations of a persistent global supply surplus kept gains in check.

Oil price stability remains crucial for India at a time when the rupee is weakening sharply.

NSE F&O Ban List: High Derivative Activity Keeps Several Stocks Under Watch

The F&O ban list for the day included SAMMAANCAP, which remained above the 95% marketwide position limit threshold.
Possible entrants to the ban included KAYNES, Bandhan Bank, CONCOR, Adani Enterprises, HFCL, IDEA, IRCTC, RBL Bank, and others due to increasing derivatives activity.

Outlook: Markets Brace for RBI Policy as Rupee Slide Adds Complexity

The market now turns its attention to the RBI policy meeting, which is expected to set the tone for the near-term trajectory of interest rates, liquidity and banking sector performance.

With the rupee touching unprecedented lows and global markets reacting to expectations of BOJ tightening, Fed signals and ECB commentary, analysts expect continued volatility.

For investors, the combination of profit-booking, global uncertainty, and currency weakness may keep markets range-bound, though strong institutional inflows into select sectors such as IT and private banking could limit downside.

• Nifty 50
• Bank Nifty
• Sensex

FAQs Sensex and Nifty Flat

Why did the Sensex and Nifty close flat today despite positive global cues and final-hour buying?

The Sensex and Nifty closed flat because investors remained cautious ahead of the RBI policy announcement and continued to book profits after benchmark indices touched record highs earlier in the week. Although final-hour buying provided some support, persistent foreign outflows, the rupee’s sharp depreciation, and weakness in PSU banks and select largecaps kept the overall sentiment subdued.

How does the rupee breaching the 90-per-dollar mark impact equity markets and foreign investor sentiment?

The rupee’s fall below 90 per dollar adds pressure on equity markets as foreign investors face weakened dollar-adjusted returns, making Indian assets less attractive in the short term. This sharp depreciation complicates private equity exits, distorts valuation expectations, and can delay upcoming IPO monetization plans. Currency weakness also raises imported inflation risks, which influences RBI’s policy stance.

What caused IT stocks to outperform while most other sectors declined in today’s market session?

IT stocks outperformed due to the sharp weakness in the rupee, which directly boosts the revenue of export-driven technology companies. The sector benefited from defensive buying, stable global demand, and expectations of improved margins due to favorable forex trends. Meanwhile, sectors like consumer durables, PSU banks, auto, and metals declined due to currency volatility, profit-booking, and concerns around global growth.

Why did more than 280 stocks hit 52-week lows even though benchmark indices showed limited movement?

Over 280 stocks hitting 52-week lows reflects deeper market undercurrents not visible in headline indices. Midcap and smallcap segments have come under pressure due to stretched valuations, rising volatility, and risk-off sentiment triggered by the rupee’s record fall and cautious global outlook. Even though Sensex and Nifty were flat, the broader market experienced significant weakness across sectors.

How will the upcoming RBI policy decision influence the near-term trajectory of Sensex, Nifty and Bank Nifty?

The RBI policy decision will influence markets by shaping expectations around interest rates, liquidity conditions, and economic growth projections. If the RBI maintains its hawkish tone due to inflation concerns and currency volatility, sectors like banking, real estate, and autos may remain under pressure. Conversely, a balanced or dovish outlook could support market stability and help Bank Nifty extend its recent resilience.

What factors contributed to the Bank Nifty closing higher when broader markets ended in the red?

Bank Nifty closed higher due to selective buying in private banks such as ICICI Bank, Axis Bank, and HDFC Bank, which benefited from stable asset quality expectations and healthy credit growth. Investors also anticipate that private banks could perform better in a high-interest-rate environment, unlike PSU banks which saw sharper declines due to concerns over bond holdings and sensitivity to RBI policy outcomes.

How do global developments—such as BOJ tightening signals, Fed commentary, and crude oil fluctuations—affect Indian market volatility?

Global developments significantly influence domestic market volatility. Rising Japanese bond yields and BOJ tightening expectations strengthen the yen and disrupt global currency flows, indirectly affecting emerging markets like India. Fed and ECB commentary shapes global risk sentiment, influencing FII positioning. Meanwhile, crude oil volatility impacts India’s import bill and inflation forecasts, making traders more cautious and contributing to intraday swings in Sensex and Nifty.