On Friday, December 5, Indian equity benchmark indices closed higher, led by rate-sensitive stocks, after the RBI cut the interest rate by 25 bps to support growth.
At the close, the Nifty 50 ended up by 152.70 points or 0.59% at 26,186.45, while the Sensex advanced by 447.05 points or 0.52% to close at 85,712.37. Both benchmark indices extended yesterday's gains. India's volatility index, India VIX, declined by 4.6%.
The Nifty 50 index ended this week down by 0.06%, ending a 3-week winning streak.
The Reserve Bank of India (RBI) announced measures to boost banking-sector liquidity by up to $16 billion to support what it described as a “goldilocks economy.” Alongside this, the RBI cut the key repo rate by 25 basis points, aided by record-low retail inflation and a benign price outlook that created room to further stimulate growth.
The reduction in rates makes borrowing more affordable, strengthening loan demand and lowering funding costs for banks and non-bank lenders. It also improves the affordability of vehicles and homes, driving stronger demand in the automobile and real estate sectors.
Among individual stocks,
On the sectoral front, 7 out of 11 sectoral indices ended in positive territory. Rate-sensitive sectors such as banking, financials, automobiles, and real estate saw notable gains. The Nifty Auto index rose 0.74%, while the Nifty Realty index advanced 0.34%.
Nifty IT index settled with its fourth consecutive week of gains, their longest since July 2024. The index gained the most in two months this week, up 3.47%. Data showed US retail sales rose less than expected and consumer confidence weakened, bolstering expectations of a Fed rate cut. Indian IT companies earn a major share of their revenue from the US and a rate cut would support growth.
The Nifty PSU Bank Index was the top gainer on Friday, ending higher by 1.51% with 8 out of 12 constituents ending in positive territory. On the flip side, Nifty Media declined by 0.48%.
The key drivers of the index gains were:
On the other hand, these stocks dragged the index:
The broader market indices ended mixed on Friday. The Nifty Midcap 100 index ended higher by 0.49% and the Nifty Smallcap 100 declined by 0.57%.
As of December 5, 2025, market breadth was in favour of declining stocks. Out of 3,192 stocks traded on the NSE, 1,335 advanced, 1,769 declined, and 88 remained unchanged.
A total of 36 stocks touched their 52-week highs, while 289 hit their 52-week lows. Additionally, 66 stocks were locked in their upper circuits, whereas 54 stocks were in lower circuits.
Disclaimer: The article is for informational purposes only and not investment advice.
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