The barometer index, the S&P BSE Sensex, slumped 400.76 points or 0.47% to 85,231.92. The Nifty 50 index tumbled 124 points or 0.47% to 26,068.15. In the past two consecutive trading sessions, the Sensex rose 1.13%, while the Nifty added 1.08%.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 1.30% and the S&P BSE Small-Cap index dropped 1.30%. The market breadth was negative.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 12.31% to 13.63.

Among the sectoral indices, the Nifty FMCG index (up 0.14%), the Nifty Auto index (down 0.06%) and the Nifty IT index (down 0.43%) outperformed the Nifty 50 index.

Meanwhile, the Nifty Metal index (down 2.34%), the Nifty Realty index (down 1.86%) and the Nifty PSU Bank index (down 1.43%) underperformed the Nifty 50 index.

Economy:

The HSBC Flash India Composite Output Index registered 59.9 in November, remaining well above the neutral 50.0 mark and its long-run average of 54.9, indicating continued strong expansion despite easing from 60.4 in October to a six-month low. The moderation in overall growth was driven by a softer rise in manufacturing output, with some firms reporting subdued new orders, while services activity strengthened compared with the previous month. The HSBC Flash India Services PMI Business Activity Index also improved, rising to 59.5 in November from 58.9 in October.

The HSBC Flash India Manufacturing PMI fell from 59.2 in October to 57.4 in November, signalling the slowest improvement in nine months but still reflecting expansion. Meanwhile, the HSBC Flash India Manufacturing PMI Output Index stood at 60.7 in November, down from 63.7 in October.

Numbers to Track:

The yield on India's 10-year benchmark federal paper was up 0.31% to 6.556 as compared with previous close 6.536.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 88.5825 compared with its close of 88.6850 during the previous trading session.

MCX Gold futures for 5 December 2025 settlement rose 0.14% to Rs 1,22,900.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.02% to 100.25.

The United States 10-year bond yield declined 1.34% to 4.050.

In the commodities market, Brent crude for January 2025 settlement lost $1.28 or 2.02% to $62.10 a barrel.

Global Markets:

European markets declined on Friday as investors digested a series of economic data prints, including the HCOB German Manufacturing PMI, the HCOB Flash Eurozone Manufacturing PMI, and S&P Global’s manufacturing figures for Britain. Investors are also awaiting the U.K. retail sales data.

The S&P Global UK Manufacturing PMI rose to 50.2 in November 2025, up from 49.7 in October and above market expectations of 49.2, according to preliminary data.

The HCOB Flash Eurozone Manufacturing PMI slipped to 49.7 in November 2025, a five-month low, down from 50 in October and below expectations of 50.2. Both new orders and employment declined, with manufacturing employment now falling on a monthly basis for two and a half years.

Meanwhile, the HCOB Germany Manufacturing PMI dropped to 48.4 in November 2025, compared with 49.6 in October and below the anticipated improvement to 49.8, marking the sharpest contraction in six months, according to preliminary estimates.

Most Asian markets ended lower, as the much-anticipated U.S. jobs data failed to provide clarity on the near-term path for interest rates, with investors returning to dumping risk assets.

The S&P Global Japan Manufacturing PMI rose to 48.8 in November 2025, up from 48.2 in October.

On the data front, Japan’s core inflation in October rose at its sharpest rate since July, in line with market estimates on Friday, supporting the case for interest rate hikes by the Bank of Japan.

The headline inflation rate rose to 3%, marking the the 43rd month in a row that it has run above the BOJ’s 2% target. The core-core inflation rate, which strips out prices of fresh food and energy, crept up to at 3.1%, compared to 3% in September.

Wall Street dived overnight as jitters over inflated tech stock prices returned, resulting in the Nasdaq's widest one-day swing since April 9 when President Donald Trump's "Liberation Day" tariffs spooked markets.

On Thursday stateside, the Nasdaq Composite fell 2.16%, down from a 2.6% advance at one point in the session.

Other major indexes also slipped, with the Dow Jones Industrial Average down 0.84%. The S&P 500 shed 1.56%, despite rising as much as 1.9% earlier in the day.

Data showed the U.S. economy added far more jobs than expected in September, but a rise in the unemployment rate and downward revisions to prior months painted an ambiguous picture for the Federal Reserve as it considers whether or not to cut interest rates next month.

The US economy added 119,000 jobs in September 2025, despite the US federal government shutdown, according to the Bureau of Labor Statistics data released on 20 November 2025.

The US unemployment rate rose to 4.4% with the number of unemployed people at 7.6 million as of the month ended September 2025, compared to the 4.1% jobless rate with 6.9 million people in the same period a year ago.