Stock market benchmark indices Sensex and Nifty rallied on Friday (December 5, 2025) after the Reserve Bank of India (RBI) cut key benchmark interest rate for the first time in six months and took steps to boost liquidity to support a “goldilocks” economy in the face of high US tariffs.

Rising for the second day in a row, the 30-share BSE Sensex advanced 447.05 points, or 0.52%, to settle at 85,712.37. During the day, it jumped 531.4 points, or 0.62%, to 85,796.72.

The 50-share NSE Nifty climbed 152.70 points, or 0.59%, to 26,186.45.

The six-member monetary policy committee, led by RBI Governor Sanjay Malhotra, voted unanimously to lower the repurchase or repo rate by 25 basis points to 5.25% and retained a neutral stance, which give room for further rate cuts.

In doing so, the RBI seems to have shrugged off concerns over fall in the rupee, which breached 90 to a dollar this week.

The RBI lowered its inflation forecast for the fiscal year through March to 2% from 2.6%, while raising its GDP growth projection to 7.3%, from the previous estimate of 6.8%.

From the Sensex firms, State Bank of India, Bajaj Finserv, Bajaj Finance, Maruti, HCL Tech, Larsen & Toubro, Mahindra and Mahindra and Infosys were among the major winners.

However, Hindustan Unilever, Eternal, Tata Motors Passenger Vehicles, and Sun Pharma were among the laggards.

Rate-sensitive stocks — bank, auto and realty — ended higher.

“Indian markets have enthusiastically responded to the RBI’s unexpected 25 bps rate cut, a move that seemed unlikely given the strong Q2 GDP data. This surprise, combined with sharply lower inflation forecasts and supportive liquidity measures, has triggered a risk-on sentiment across equities. Rate-sensitive sectors such as autos, real estate, and NBFCs are leading the gains due to reduction in cost,” Vinod Nair, Head of Research, Geojit Investments Ltd, said.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,944.19 crore on Thursday (December 4, 2025), while Domestic Institutional Investors (DIIs) bought stocks worth ₹3,661.05 crore, according to exchange data.

In Asian markets, South Korea’s Kospi, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index settled in positive territory while Japan’s Nikkei 225 index ended lower.

Markets in Europe were trading higher. U.S. markets ended on a flat note on Thursday (December 4, 2025).

Brent crude, the global oil benchmark, climbed 0.16% to $63.36 per barrel.

On Thursday (December 4, 2025), the Sensex edged higher by 158.51 points, or 0.19%, to settle at 85,265.32. The Nifty climbed 47.75 points, or 0.18%, to 26,033.75.

Published – December 05, 2025 10:45 am IST

The 30-share Bombay Stock Exchange (BSE) Sensex dropped 165.35 points to 84,972.92 in early trade. File.
| Photo Credit: PTI

Benchmark indices Sensex and Nifty both declined in early trade on Monday (November 3, 2025). Image for representational purposes only.
| Photo Credit: PTI

Benchmark equity indices Sensex and Nifty ended lower on Monday (September 22, 2025).
| Photo Credit: PTI

Benchmark indices Sensex and Nifty bounced back after falling in early trade on Thursday (January 30, 2025). Image for representational purposes only.
| Photo Credit: REUTERS

Benchmark indices Sensex and Nifty bounced back after falling in early trade largely due to buying in Bajaj Finance and Bajaj Finserv.

Buying in smallcap and midcap stocks also added to the optimistic trend in equities.

The 30-share BSE benchmark Sensex declined 106.13 points to 76,426.83 in early trade. The NSE Nifty dipped 23.9 points to 23,139.20.

However, soon both the benchmark indices recovered all the early lost ground and were trading higher. The BSE benchmark quoted 104.79 points higher at 76,655.65, while the Nifty traded 64.30 points up at 23,227.40.

From the 30-share blue-chip pack, Tata Motors tanked nearly 8% after the firm reported a 22% fall in consolidated net profit to ₹5,578 crore for the third quarter ended December 2024, impacted by a decline in revenue from its passenger and commercial vehicles divisions.

ITC Hotels, Infosys, UltraTech Cement, ICICI Bank and Titan were the other laggards.

However, Bajaj Finance traded 4.52% higher followed by Bajaj Finserv which climbed over 3%.

Bajaj Finance on Wednesday (January 29, 2025) reported an 18% increase in its consolidated net profit to ₹4,308 crore for the December quarter.

Power Grid, IndusInd Bank, NTPC and Bharti Airtel were also among the gainers.

The BSE smallcap gauge traded 1.35% higher and midcap index quoted higher by 0.88%.

In Asian markets, Tokyo traded in positive territory. Markets in Seoul, Shanghai and Hong Kong were closed due to holidays.

U.S. markets ended lower on Wednesday.

“The recovery in the market is healthy since it is being led by fairly valued largecaps. The rally can sustain if the Budget comes up with some strong growth stimulating measures that can improve the market sentiments too. However, a sustained rally can happen only if the FII selling stops and we get some leading indicators suggesting growth and earnings recovery.

“Globally, the stock markets remain strong mainly due to the resilient U.S. economy and the down trending interest rate cycle in the U.S. The Fed’s decision to pause yesterday was on expected lines,” V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,586.43 crore on Wednesday, according to exchange data.

“The Federal Reserve kept interest rates steady at 4.25%-4.5%, maintaining a cautious ‘wait-and-see’ approach, leaving market sentiments subdued. FIIs continue their selling spree, and attention has now shifted to the Union Budget,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

Global oil benchmark Brent crude dipped 0.05% to $76.54 a barrel.

The 30-share BSE benchmark jumped 631.55 points or 0.83% to settle at 76,532.96 on Wednesday. The Nifty soared 205.85 points or 0.90% to 23,163.10.

A bird flies past a screen displaying the Sensex results on the facade of the Bombay Stock Exchange (BSE) building in Mumbai.
| Photo Credit: REUTERS

Benchmark indices Sensex and Nifty climbed in early trade on Friday (December 27, 2024) amid buying in bank stocks and a largely firm trend in the Asian markets.

The 30-share BSE benchmark Sensex climbed 311.48 points to 78,783.96 in early trade. The NSE Nifty went up by 98.1 points to 23,848.30.

From the 30 blue-chip pack, Tata Motors, Mahindra & Mahindra, IndusInd Bank, Bajaj Finance, NTPC, Bharti Airtel, Bajaj Finserv and ICICI Bank were among the biggest gainers.

HCL Technologies, Adani Ports, Tata Consultancy Services and Larsen & Toubro were the laggards.

In Asian markets, Tokyo, Shanghai and Hong Kong traded higher while Seoul quoted lower.

U.S. markets ended on a flat note on Thursday.

Global oil benchmark Brent crude traded marginally up by 0.01% to $73.27 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,376.67 crore on Thursday (December 26, 2024), according to exchange data.

The BSE benchmark dipped 0.39 points to settle at 78,472.48 in a muted trade on Thursday. The Nifty eked out gains of 22.55 points or 0.1% to 23,750.20.

An employee of a stock trading firm looking at a share price on his computer.
| Photo Credit: The Hindu

Benchmark indices Sensex and Nifty slumped in early trade on Thursday (December 19, 2024) following weak global market trends after the U.S. Federal Reserve indicated fewer rate cuts next year.

The 30-share BSE benchmark Sensex tanked 1,162.12 points to 79,020.08 in early trade. The NSE Nifty tumbled 328.55 points to 23,870.30.

All the 30 blue-chip stocks were trading lower. Infosys, State Bank of India, Tata Steel, Asian Paints, JSW Steel, Bajaj Finserv, Bajaj Finance and Mahindra & Mahindra were the biggest laggards.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading lower.

Wall Street ended sharply lower on Wednesday (December 18, 2024).

“When valuations are high the market needs only a trigger to correct sharply. This trigger was provided by the Fed guidance of fewer rate cuts in 2025, which went against market expectations. Even though the rate cut of 25 bps was in tune with the market’s expectation, the indication of only two cuts of 25 bps each in 2025 against market expectation of three or even four cuts spooked the market resulting in a sharp sell-off in Wall Street.

“The Fed chief’s comments regarding the economy and the labour market are, in fact, positive, suggesting a resilient U.S. economy. But always the market gets spooked when the reality falls short of expectations,” V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,316.81 crore on Wednesday, according to exchange data.

“The Federal Reserve cut its benchmark interest rate by 25 basis points, marking the third consecutive reduction this year, but bullish sentiment waned as the Fed lowered its 2025 projections to just two additional cuts,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

Global oil benchmark Brent crude dipped 0.40% to $73.10 a barrel.

The BSE benchmark Sensex tumbled 502.25 points or 0.62% to settle at 80,182.20, taking its downtrend to the third day on Wednesday. The Nifty declined 137.15 points or 0.56% to 24,198.85.

A bird flies past a screen displaying the Sensex results on the facade of the Bombay Stock Exchange (BSE) building in Mumbai.
| Photo Credit: REUTERS

Benchmark equity indices bounced back in early trade on Thursday (November 14, 2024) after facing heavy correction in the last two trading days, amid massive buying by domestic institutional investors and a rally in frontline stocks HDFC Bank, Reliance Industries.

The BSE benchmark Sensex climbed 254.5 points to 77,945.45 in early trade. The NSE Nifty went up by 86.25 points to 23,645.30.

The BSE benchmark had tanked 1,805.2 points or 2.27% in the past two days.

From the 30-share Sensex pack, HCL Technologies, HDFC Bank, NTPC, Reliance Industries, Tech Mahindra and Axis Bank were the major gainers.

UltraTech Cement, Power Grid, Mahindra & Mahindra, Hindustan Unilever, Maruti and Larsen & Toubro were among the laggards.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,502.58 crore on Wednesday (November 13, 2024), while Domestic Institutional Investors (DIIs) bought shares worth ₹6,145.24 crore, according to exchange data.

“During a correction phase in the market, like the present one, there will always be counter moves, which will facilitate a bounce back. The huge liquidity at the disposal of the DIIs can trigger this bounce back. But such a bounce back is unlikely to sustain since the fundamental factors are unfavourable.

“The Trump factor has triggered many profound changes in markets already. The dollar index is strong and rising and is currently at 106.61. The US 10-year bond yield is at 4.48%. These two are strong headwinds for equity markets in emerging economies like India,” V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.

The positive factor is the huge liquidity at the disposal of the DIIs and the sustained flows into these funds, he said.

“Domestically, the worry is the disappointing Q2 results and the consensus earnings downgrade,” Mr. Vijayakumar added.

In Asian markets, Seoul, Tokyo were trading higher while Shanghai and Hong Kong quoted lower.

The U.S. markets ended on a mixed note on Wednesday.

Global oil benchmark Brent crude dipped 0.36% to $72.02 a barrel.

The BSE benchmark Sensex tanked 984.23 points or 1.25% to settle at 77,690.95 on Wednesday. Registering its fifth day of decline, the Nifty tumbled 324.40 points or 1.36% to 23,559.05.