Summary of this article
The Sensex jumped 447 points (0.52 per cent), and the Nifty closed above 26,100 (0.59 per cent gain), driven by the RBI's 25 Bps repo rate cut.
The rally was led by rate-sensitive stocks, with the Nifty IT (0.98 per cent) and Nifty Financial Services (0.9 per cent) being the top sectoral gainers.
Attention now shifts to Russian President Putin's India visit and crucial macroeconomic cues like the US CPI data next week.
The Sensex and the Nifty ended the week on a positive note cheered by the Reserve Bank of India’s (RBI’s) monetary policy committee (MPC) decision to reduce the repo rate by 0.25 per cent on December 5, 2025.
The headline indices extended gains for the second day, with the 30-share Sensex closing higher by 447.05 points or 0.52 per cent at 85,712.37, and the Nifty 50 closing at 26,186.45, up by 152.70 points or 0.59 per cent.
Rate Sensitive Stocks Among Top Gainers
Shares of Shriram Finance, State Bank of India and Bajaj Finserv closed the session with gains of 3.04 per cent, 2.49 per cent and 2.13, respectively. Notably, the gains in these stocks followed a broad-based rally across rate sensitive stocks. As many as 38 constituents of the Nifty 50 index gained while 12 finished lower.
Nifty Financial Services and Nifty IT Lead Gainers
On December 5, the Nifty IT and the Nifty Financial Services led the gainers among the sectoral pack closing higher by 0.98 per cent and 0.9 per cent, respectively. Broader market indices closed the session mixed, as the Nifty MidCap 100 gained 0.49 per cent and the Nifty SmallCap 100 declined by 0.57 per cent.
Asian Markets End Higher
Major Asian stock market indices closed the session higher on December 5. South Korea’s index KOSPI, China’s Shanghai Composite and Hong Kong’s Hang Seng index closed the session with gains of 1.74 per cent, 0.69 per cent and 0.52 per cent, respectively. On the other hand, Japan’s Nikkei 225 closed with a decline of 1.27 per cent.
Primary Market Action
The initial public offerings (IPOs) of Meesho, Vidya Wires and Aequs closed for subscription with strong and sustained demand on December 5. The share allotment status of these IPOs will be announced in the coming week.
Market Outlook
The stock market witnessed a volatile session today led by RBI’s repo rate cut. Following the session, defence-related stocks are expected to remain in focus amid Russian President Vladimir Putin’s India visit. Agreements stemming from the meeting may impact stock-specific activity in the upcoming week. Macroeconomic cues, such as the release of the US consumer price index (CPI) data and rising expectations of a potential US Federal Reserve rate cut are likely to affect investor activity in the coming week.
