The BSE Sensex ended at 85,106.81, down 31.46 points or 0.04%.
The NSE Nifty50 closed at 25,986, marking a drop of 46.2 points or 0.18%.
In the broader markets, Nifty MidCap and Nifty SmallCap saw significant losses, dropping 0.98% and 0.71%, respectively.
You may also like: Aequs IPO Date, Price, GMP, Review and Details
Impact on the stock market
Sector-wise performance
The sectoral indices were a mixed bag, with some facing steep declines while others managed to hold up. The Nifty PSU index saw the sharpest fall, dropping 3.07%, followed by declines in the Auto, Consumer Durables, Metals, Financial Services, FMCG, and Oil & Gas sectors.
On a more positive note, the Nifty IT and Media sectors ended in the green, which provided some relief to the market.
| Sector/Index | Performance |
| IT & BPM sector | 0.76% |
| Healthcare sector | -0.32% |
| Oil & Gas sector | -0.62% |
| Real estate sector | -0.75% |
| PSU Bank in India | -3.07% |
Top gainers today
| Company | Share Price (in ₹) | Change % |
| Wipro | 254.69 | 1.81 |
| TCS | 3,180.00 | 1.41 |
| ICICI Bank | 1,391.50 | 1.35 |
| Hindalco Inds | 816.30 | 1.17 |
| Infosys | 1,578.70 | 1.13 |
Top losers today
| Company | Share Price (in ₹) | Change % |
| Max Healthcare | 1,086.00 | -2.82 |
| Adani Ent | 2,189.80 | -2.22 |
| Bharat Electronics | 403.95 | -2.20 |
| Tata Consumer Products | 1,140.00 | -1.91 |
| M & M | 3,649.40 | -1.81 |
Market aftermath: Impact on stocks
JSW Steel: A 3% drop following a JV announcement
JSW Steel saw a 3% drop in its stock price on December 3, after JFE Steel announced the formation of a 50:50 joint venture (JV) for the transfer of the Bhushan Power & Steel (BPSL) facility. JFE Steel plans to invest Rs 15,750 crore (270 billion yen) into the JV, aiming to expand crude steel production at the integrated steelworks to 10 million tons by 2030. This move is part of a strategic collaboration to bring in technological expertise and leverage JSW Steel’s project execution capabilities.
JSW had previously acquired BPSL in 2021, turning what was once a sick unit into a profitable entity. Through this JV, JSW aims to monetise part of its stake and accelerate BPSL’s growth.
Tata Communications: Shares surge by 3% on positive brokerage note
Shares of Tata Communications rose by around 3% after the company announced that its subsidiary, Tata Communications (Netherlands) B.V., had acquired a 51% stake in the US-based AI platform Commotion. The acquisition, valued at nearly Rs 277 crore, is expected to bolster Tata Communications’ Customer Interaction Suite (CIS) portfolio by integrating agentic AI and orchestration capabilities.
Following the announcement, Macquarie maintained a Buy rating on the stock, with a target price of Rs 2,210 per share, implying an upside potential of nearly 20% from its previous closing price. The positive outlook is attributed to Tata Communications’ expanding AI capabilities, which are expected to strengthen its position in the growing enterprise cloud and AI sectors.
PSU Banks: A sharp fall after government clarification
The stocks of Public Sector Banks (PSUs) dropped sharply on December 3, following a clarification from the Ministry of Finance regarding the FDI (Foreign Direct Investment) limit in these banks. Contrary to earlier reports suggesting the government might increase the FDI cap from 20% to 49%, the government stated there were no such plans. This news sent PSU Bank stocks tumbling, with shares of Indian Bank falling over 6%, followed by declines in Punjab National Bank (PNB), Bank of India, Canara Bank, and others.
The Nifty PSU Bank index was down by over 3%, continuing its decline from previous sessions. The clarification about FDI limits and the absence of any merger plans for state-owned banks contributed to the drop in investor confidence.
Crude Oil: Prices remain flat despite US inventory rise
In the commodities market, crude oil futures were mostly flat on Wednesday. Brent oil futures traded at $62.49 per barrel, up by 0.06%, while WTI crude oil futures were at $58.68, rising by 0.07%. However, the December crude oil futures on the MCX were down by 0.19%, trading at ₹5,299.
The market was impacted by industry data showing a 2.48 million barrel increase in US crude inventories for the week ending November 28. Additionally, gasoline and distillate stocks also saw increases. Despite geopolitical tensions and attacks on Russian energy infrastructure, the data failed to push oil prices higher, reflecting a cautious market outlook.
Conclusion
The Indian stock market today displayed mixed sentiment, with Sensex and Nifty ending in the red for the third consecutive session. Investors are taking a cautious approach ahead of the RBI MPC decision, as evidenced by the performance of several key sectors and stocks.
On the stock front, JSW Steel and Tata Communications saw notable movements due to strategic announcements, while PSU banks faced a sharp decline after the government’s clarification on FDI limits. Meanwhile, crude oil prices remained relatively flat despite the rise in US inventories, signaling a market cautious about the global economic environment.
As we move into the latter part of the week, the market’s direction will likely depend on the RBI’s monetary policy and the broader global economic trends. Stay tuned for more updates!
For more stock market insights, check out the StockGro blog.
