The trading session began on a tentative note. Early weakness, likely driven by broader global uncertainty and lingering currency pressure, weighed on the markets initially. But selective accumulation in index leaders, especially in IT, helped reverse the weakness. By the end of the session, buying interest had firmed, leading to a decent recovery from the intraday lows.
Despite the upside, the rally was somewhat cautious and selective — not all sectors participated. While IT and some large-caps showed strength, broader appetite among smaller stocks remained restrained. This suggests that although investors welcomed the rebound, many remain wary of external headwinds such as currency volatility and global macro uncertainty.
For investors, today’s close could offer a mixed signal, say analysts quoted in reports. “On one hand, the rebound and renewed interest in top-tier stocks shows there is still appetite for quality and dollar-earning firms. On the other, the tepid performance of mid- and small-caps highlights lingering caution about broader market strength. Going forward, currency trends, global economic cues and flows (especially foreign-institutional flows) may matter more than earnings-driven momentum in shaping near-term direction,” they said.
The Indian rupee saw a volatile session on December 4, plunging to a record low near 90.43 against the US dollar in early trade before recovering to close around 89.96. The sharp intraday fall was driven by persistent foreign outflows, a firm dollar and pressure from India’s widening trade gap, while the late rebound was helped by a softer dollar index and signs of calibrated RBI intervention to steady the market. The currency’s wide swing highlighted its continued sensitivity to global risk sentiment, heavy import demand and external-sector stress despite India’s otherwise strong domestic economic backdrop.
