Stock markets rally as RBI cuts interest rate; Sensex jumps 447 points

admin — Fri, 05 Dec 2025 05:15:00 +0000

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

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Sensex and Nifty decline: Stock markets tumble in early trade dragged down by Bajaj Finance, foreign fund outflows

admin — Fri, 25 Jul 2025 04:42:00 +0000

A view of the Bombay Stock Exchange in Bombay
| Photo Credit: AP

Equity benchmark indices Sensex and Nifty tumbled in early trade on Friday (July 25, 2025) dragged down by Bajaj Finance and persistent foreign fund outflows.

A weak trend in Asian markets also dented investors’ sentiment.

The 30-share BSE Sensex dropped 407.45 points to 81,776.72 in early trade. The 50-share NSE Nifty declined 144.3 points to 24,917.80.

From the Sensex firms, Bajaj Finance tanked nearly 6% post its June quarter earnings announcement. Bajaj Finserv fell by over 4 per cent.

Tata Steel, Hindustan Unilever, Mahindra & Mahindra, UltraTech Cement, Power Grid and Maruti were also among the laggards.

However, Eternal, ICICI Bank, HCL Tech and State Bank of India were the gainers.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,133.69 crore on Thursday (July 24, 2025), according to exchange data. However, Domestic Institutional Investors (DIIs) bought stocks worth ₹2,617.14 crore.

“The near-term market construct has turned weak. Sustained FII selling of ₹11,572 crore in the last four trading days will weigh on the market,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

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

The U.S. markets ended on a mixed note on Thursday (July 24, 2025).

India and the U.K. signed a landmark free trade agreement on Thursday (July 24, 2025), which, starting next year, will see 99 per cent of Indian exports enter the U.K. duty-free, while reducing tariffs on British products such as cars and whisky.

The deal, which comes days ahead of the U.S. moratorium on higher tariffs coming to an end, aims to double the USD 56 billion trade between the world’s fifth and sixth largest economies by 2030.

“The India-UK FTA, which is India’s first comprehensive trade agreement with a major developed country, has two implications from the market perspective. One, this FTA will significantly boost trade between both countries, which will be seen as a positive by the market. Two, this FTA along with many other FTAs signed by India with other countries, projects India as a nation committed to free trade. The fact that this FTA has come during a time of tariff wars is commendable, and hopefully this will improve India’s chances of striking a fair-trade deal with the U.S.,” Vijayakumar added.

Sectors like textiles, leather, food processing, automobiles, pharmaceuticals and gems and jewellery, which are expected to benefit from the FTA, will be on the market radar, he said.

Global oil benchmark Brent crude climbed 0.39% to $69.45 a barrel.

On Thursday, the Sensex tanked 542.47 points or 0.66% to settle at 82,184.17. The Nifty dropped 157.80 points or 0.63% to 25,062.10.

Published – July 25, 2025 10:12 am IST

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Stock markets rally as RBI cuts interest rate; Sensex jumps 447 points

Sensex and Nifty decline: Stock markets tumble in early trade dragged down by Bajaj Finance, foreign fund outflows