Newsroom, December 04, 2025: Indian markets shook off a four-day losing streak Thursday, with the BSE Sensex surging 159 points to close at 85,265 and the NSE Nifty advancing 48 to 26,034, fueled by a late rebound in IT stocks amid the rupee's volatile day.
The local currency plunged to a record low of 90.43 in early trade against the dollar hit by foreign outflows, a firm greenback, and India's widening trade deficit before recovering to 89.96, aided by a softer dollar index and suspected RBI interventions. This dollar weakness supercharged dollar-earning IT firms, drawing selective buying in large-caps and reversing early session weakness tied to global uncertainties.
Midcap and smallcap indices, however, remained under modest pressure, ending flat or slightly down, reflecting cautious investor sentiment amid currency swings and external cues. Analysts highlighted renewed appetite for quality plays but warned of tepid broader participation, with future direction hinging on rupee trends, foreign flows, and global macro signals more than earnings momentum.
