Global markets remain largely under pressure as concerns over the US growth outlook triggered fresh selling across major indices. Wall Street ended lower overnight, dragging Asian markets down in early trade. Risk sentiment remains fragile amid mixed macro signals and uncertainty around global trade and geopolitics.
The Indian market suffered another sharp setback as the rupee weakened further and foreign investors continued to sell aggressively. The dollar crossed the ₹91 mark, closing at ₹91.03 after touching ₹91.09 during the session, raising fears of further depreciation. Crude oil, which had slipped earlier, turned higher again, while gold recovered from intraday lows.
In GIFT City, Nifty derivatives closed at 25,949.50 on Tuesday night and slipped to 25,924 in early trade on Wednesday before attempting a mild recovery. This indicates a weak start for domestic equities, with losses likely at the opening.
European markets ended lower on Tuesday as optimism over Ukraine peace talks weighed on defence stocks. Progress on security guarantees for Ukraine remains uncertain. The European Central Bank is widely expected to keep interest rates at 2 per cent, while weak UK employment data has increased expectations that the Bank of England may be forced to cut rates.
In the US, market cues were mixed. Technology stocks showed some resilience as concerns over artificial intelligence investments eased slightly. However, weak labour data raised fresh worries about the economy. Employment fell by 105,000 in October and rose by only 64,000 in November, while unemployment climbed to 4.6 per cent. The S&P 500 declined for the third consecutive session, while falling crude prices hurt energy stocks. On Tuesday, the Dow Jones Industrial Average fell 302.30 points, or 0.62 per cent, to 48,114.26, while the S&P 500 slipped 16.25 points to 6,800.26. The Nasdaq Composite bucked the trend, rising 54.05 points to close at 23,111.46. US futures were again in the red on Wednesday morning.
Tesla shares closed at a record high, driven by strong hype around robotaxi prospects despite weak car sales. SpaceX, Elon Musk’s aerospace venture, is preparing for a potential IPO next year after recently raising funds at a valuation of $800 billion. According to Forbes, Musk’s net worth rose by $68 billion to $684.3 billion, widening the gap with second-ranked Larry Page.
Asian markets were mostly lower on Wednesday. Japan’s exports rose 6.1 per cent in November, the strongest growth in nine months, but the Nikkei opened lower before recovering. South Korea’s Kospi gained about half a per cent, while Australia’s ASX fell 0.30 per cent. Chinese indices moved higher, while Hong Kong stocks opened weak but later edged up.
Indian equities remained under pressure as persistent rupee weakness, continuous foreign outflows and uncertainty around trade agreements weighed heavily on sentiment. Most sectoral indices declined, with sharp losses in realty, banking, financial services, IT, metals, oil, pharma, healthcare, capital markets, defence and tourism. Fertiliser stocks initially surged after the US lifted sanctions on potash exports from Belarus, before paring gains, though FACT and Chambal Fertilisers closed higher.
Foreign institutional investors continued to sell, recording net cash market outflows of ₹2,381.92 crore on Tuesday, while domestic funds provided limited support with net purchases of ₹1,077.48 crore. The Sensex fell 533.50 points to close at 84,679.86, while the Nifty declined 167.20 points to end at 25,860.10. Bank Nifty slipped 427.20 points to 59,034.60. Broader markets underperformed, with both mid-cap and small-cap indices posting steeper losses.
Market breadth remained negative, with declines outnumbering advances on both the BSE and NSE. Technical indicators suggest that a sustained move below 25,900 on the Nifty could open the door for further downside. A recovery above this level, however, may allow a pullback towards the 26,000–26,100 zone.
Gold and silver rebounded after Tuesday’s decline. Gold moved between $4,271 and $4,336 an ounce before closing slightly lower at $4,303.30, and edged up again on Wednesday morning. In Kerala, 22-carat gold fell by ₹1,120 per sovereign to ₹98,160 on Tuesday. Silver surged sharply in early trade on Wednesday after closing lower the previous session.
Industrial metals remained weak amid hopes of progress in Ukraine peace talks. Copper fell more than 1 per cent, while aluminium bucked the trend with modest gains. Rubber, cocoa and coffee prices rose, while palm oil slipped.
The dollar index dipped to 97.87 before recovering to close at 98.15, and moved slightly higher again on Wednesday morning. Bond yields in the US fell, with the 10-year yield easing to 4.151 per cent.
The rupee continued to weaken against major currencies. The dollar’s rise past ₹91 has pushed the rupee’s year-to-date loss to nearly 6 per cent. The currency has depreciated even more sharply against the euro, pound, yuan and yen. Rising trade deficits, lack of progress on a US trade deal and sustained foreign selling in equities and bonds are keeping pressure on the currency.
Crude oil prices, which had slipped on hopes of a Ukraine peace deal, rebounded after the US announced sanctions on Venezuelan oil tankers. Brent crude rose back above $59 a barrel in early trade, while natural gas prices also moved higher.
Cryptocurrencies saw modest gains, with Bitcoin trading above $87,800, while Ether and Solana remained lower.
