Indian Equity Markets End Week on a High Note
The Reserve Bank of India (RBI) announced a 25 basis point cut in the repo rate, bringing it down to 5.25 percent. This move had a positive impact on the Indian equity markets, which ended the week on a high note. The Monetary Policy Committee, led by Governor Sanjay Malhotra, also maintained a neutral policy stance.
RBI’s Double Surprise
The central bank delivered a double surprise – cutting rates and sharply lowering the FY26 inflation forecast to 2 percent from 2.6 percent, while raising the growth projection to 7.3 percent from 6.8 percent. Analysts said these moves reflect strong confidence in the economy and improving price stability.
Market Reaction
Equities reacted positively to the policy announcement. The Sensex closed at 85,712.37, gaining 447.05 points (0.52 percent), while the Nifty ended at 26,186.45, up 152.7 points (0.59 percent). Market participants noted that Nifty comfortably held above the crucial psychological level of 26,000.
Sectoral Performance
Most major sectoral indices ended in the green. Nifty PSU Bank was the standout performer, rising 1.5 percent. Banking, auto, metal, IT, realty, and oil and gas stocks also saw good buying interest. In contrast, media, pharma, FMCG, and consumer durables closed lower.
Key Movers
On the Sensex, State Bank of India, Bajaj Finserv, Maruti Suzuki, Bajaj Finance, and HCL Tech were among the top gainers. Major losers included Hindustan Unilever, Eternal, Trent, Sun Pharma, Tata Motors PV, and Bharat Electronics.
Why Markets Reacted Positively
Market experts said the rate cut came as a pleasant surprise because strong Q2 GDP numbers had reduced expectations of any immediate easing. The move is expected to boost economic growth and improve market sentiment.
Conclusion
In conclusion, the RBI’s decision to cut the repo rate and lower the inflation forecast has boosted the Indian equity markets. The positive reaction from the markets is a reflection of the strong confidence in the economy and improving price stability. As the market continues to react to the policy announcement, it will be interesting to see how the economy performs in the coming months. Published on: Friday, December 05, 2025, 04:32 PM IST
