Domestic equities ended the week on a muted note, with the frontline indices closing almost flat despite notable intra-week volatility. The market remained under pressure for three out of the five sessions, weighed down by a weakening rupee, persistent FII outflows and caution ahead of the RBI’s monetary policy decision. Sentiment was subdued early in the week as the Sensex and Nifty retreated from record highs amid concerns over foreign outflows, a heavy IPO pipeline and uncertainty around India–US trade negotiations.
Conditions worsened mid-week as the rupee slipped to fresh lows, but markets stabilized on Thursday and rebounded sharply on Friday after the RBI delivered a 25-basis-point repo rate cut, helping lift investor sentiment despite mixed global cues.
In the week ended on Friday, 05 December 2025, the S&P BSE Sensex rose marginally 5.70 points or 0.01% to settle at 85,712.37. The Nifty 50 index added 16.50 points or 0.06% to settle at 26,186.45. The BSE Mid-Cap index fell 1.25% to close at 46,617.80. The BSE Small-Cap index dropped 1.84% at 51,093.23.
Weekly Index Movement:
The frontline equity indices closed with minor losses on Monday, extending their decline for a second straight session. The S&P BSE Sensex declined 64.77 points or 0.08% to 85,641.90. The Nifty 50 index lost 27.20 points or 0.10% to 26,175.75. Over the two straight sessions, the Nifty slipped 0.15%, while the Sensex fell 0.09%.
Key equity benchmarks fell sharply on Tuesday, extending their losing streak to a third straight session. The S&P BSE Sensex declined 503.63 points or 0.59% to 85,138.27. The Nifty 50 index lost 143.55 points or 0.55% to 26,032.20. In the past three consecutive trading sessions, the Sensex slipped 0.68%, while the Nifty fell 0.70%.
Key equity indices slipped for the fourth straight session as investors booked profits ahead of the RBI’s policy decision later this week. The S&P BSE Sensex declined 31.46 points or 0.04% to 85,106.81. The Nifty 50 index fell 46.20 points or 0.18% to 25,986. In three trading sessions, the Sensex slipped 0.72%, while the Nifty fell 0.88%.
The domestic equity indices posted modest gains on Thursday, breaking a four-day losing streak. The S&P BSE Sensex, advanced 158.51 points or 0.19% to 85,265.32. The Nifty 50 index added 47.75 points or 0.18% to 26,033.75. In the past four trading sessions, the Nifty and Sensex declined 0.88% and 0.72%, respectively.
The headline equity indices ended with strong gains on Friday, extending their winning run to a second straight. The barometer index, the S&P BSE Sensex, advanced 447.05 points or 0.52% to 85,712.37. The Nifty 50 index added 152.70 points or 0.59% to 26,186.45. In the past two trading sessions, the Nifty and Sensex declined 0.77% and 0.71%, respectively.
RBI MPC Outcome:
The Reserve Bank of India Governor Sanjay Malhotra, announcing the fifth bi-monthly policy review of FY26 said that RBI’s MPC has unanimously decided to reduce the policy repo rate by 25 basis points to 5.25%, keeping its stance neutral.
The MPC voted unanimously to reduce the rate under the liquidity adjustment facility, which also revised the standing deposit facility (SDF) rate to 5% and the marginal standing facility (MSF) and Bank Rate to 5.50%, while maintaining a neutral stance.
The RBI raised its real GDP growth forecast for FY26 to 7.3% from 6.8% earlier, expecting 7% growth in Q3 and 6.5% in Q4. For Q1 and Q2 FY27, growth is projected at 6.7% and 6.8%, respectively.
The CPI inflation forecast for FY26 was lowered to 2% from 2.6%, with expectations of 0.6% in Q3 and 2.9% in Q4. CPI for Q1 and Q2 FY27 is projected at 3.9% and 4%.
The MPC noted that headline inflation has eased sharply due to exceptionally benign food prices, while core inflation has softened and is expected to stay anchored near the 4% target in the first half of FY27.
The committee said the balance between growth and inflation continues to offer policy space to support economic momentum.
The minutes of the meeting will be published on 19 December, and the next MPC meeting will be held from 4 to 6 February 2026.
Fitch Ratings Upgrade:
Fitch Ratings revised India’s GDP growth forecast for FY26 to 7.4%, from 6.9% projected earlier. Fitch says the growth reflects solid real income gains, buoyant consumer sentiment and the impact of recent GST reforms. The agency expects growth to moderate to 6.4% in FY27 as the economy moves closer to its potential, with domestic demand, especially consumer spending, remaining the primary engine. Public investment is seen slowing, while private investment is expected to pick up in the latter half of FY27 as financial conditions ease.
Fitch also flagged external vulnerabilities, noting that India faces an effective tariff rate of around 35% on its exports to the US, one of the highest among major economies. Any trade agreement to reduce this burden would help lift external demand, the agency said.
Economy:
India’s industrial production growth slipped to a 14-month low of 0.4% in October, down sharply from 4.6% in the previous month, reflecting weakness across key sectors. The reduced growth can be attributed to fewer working days due to various festivals including Dussehra, Diwali and Chhath.
The seasonally adjusted HSBC India Manufacturing PMI fell to 56.6 in November from 59.2 in October. While the index remained well above the 50.0 expansion threshold and the long-run average of 54.2, it signalled the slowest improvement in operating conditions since February.
India's gross GST revenue stood at Rs 1,70,276 crore in November 2025, a 0.7% increase over the Rs 1,69,016 crore collected in the same month last year. For the April-November period, gross GST collections climbed to Rs 14,75,488 crore, reflecting a healthy 8.9% year-on-year growth.
India’s GDP grew 8.2% in Q2 FY26, the fastest pace in six quarters, driven by strong manufacturing and services performance. This compares with 5.6% in the same period last year and 7.8% in Q1, taking first-half growth for FY26 to 8%.
India's industrial production growth slipped to a 14-month low of 0.4% in October, down sharply from 4% (quick estimate) in September 2025. The reduced growth can be attributed to fewer working days due to various festivals including Dussehra, Diwali and Chhath.
India's current account deficit moderated to $12.3 billion (1.3% of GDP) in Q2:2025-26 from $20.8 billion (2.2% of GDP) in Q2:2024-25, the RBI said on Monday.
The seasonally adjusted HSBC India Services PMI Business Activity Index rose from 58.9 in October to 59.8 in November, indicating a historically strong expansion in output and a faster pace of growth than the previous month.
Meanwhile, the HSBC India Composite PMI Output Index stood at 59.7 in November, pointing to robust growth. However, the decline from October’s 60.4 reading signaled the slowest expansion since May.
Auto Sales Numbers:
Maruti Suzuki India advanced 2.45%. The car major reported a 26% year-on-year increase in total sales to 2,29,021 units in November.
Mahindra & Mahindra slipped 1.10%. The company said that its overall auto sales for the month of November 2025 stood at 92,670 vehicles, a growth of 19% including exports.
TVS Motor Company rallied 3.73%. The company registered sales of 519,508 units in November 2025, which is 30% higher as compared with the 401,250 units sold in November 2024.
Hyundai Motor India added 0.71% after reporting total sales of 66,840 units in November 2025, up 9.1% year-on-year. Domestic sales stood at 50,340 units last month, a growth of 4.3% from a year earlier, while exports increased 26.9% YoY to 16,500 units. The company said the all-new Hyundai Venue supported its SUV momentum, securing over 32,000 bookings within a month of launch.
V.S.T Tillers Tractors shed 0.06%. The company reported total Power Tiller and Tractor sales of 5,166 units in November 2025, a sharp 129% YoY jump from the 2,251 units sold in November 2024.
Ashok Leyland slipped 1.67%. The company reported a 29% increase in total commercial vehicle sales to 18,272 units in November 2025, up from 14,137 units sold in November 2024.
Bajaj Auto added 0.43%. The company reported 8% increase in total auto sales for November 2025, selling 4.53 lakh units as against 4.21 lakh units sold in November 2024.
Atul Auto dropped 6.09%. The company reported a 20.26% rise in total sales to 3,401 units in November 2025 as against 2,828 units sold in November 2024
Escorts Kubota declined 2.77% after the company’s agri-machinery business division in November 2025 sold 10,580 tractors, registering a growth of 17.9% as against 8,974 tractors sold in November 2024.
Hero MotoCorp rallied 3.09%. The company has recorded 31% rise in total two-wheeler sales in November 2025, selling 604,490 units during the month as compared with 459,805 units dispatched in the same period last year.
Force Motors dropped 3.31%. The company’s total sales climbed 52.94% to 2,883 units in November 2025 compared with 1,885 units sold in November 2024.
Stocks in Spotlight:
Sun Pharma Advanced Research Company (SPARC) surged 13.72%. The company announced that the U.S. District Court has granted summary judgement in favour of SPARC for Sezaby PRV. In a regulatory filing made during market hours today, the company stated that the U.S. District Court for the District of Columbia granted summary judgment in favour of SPARC in the matter of issuance of priority review voucher (PRV) associated with the approval of Sezaby.
Adani Ports and Special Economic Zone (APSEZ) rose 0.56%. The company reported handling 41 MMT of cargo in November 2025, marking a 14% year-on-year (YoY) increase, driven by strong growth in containers (20% YoY) and dry cargo (10% YoY).
NMDC gained 3.38%. The company reported an 11.09% rise in iron ore production in November 2025 to 5.01 million tonnes (MT), compared to 4.51 MT recorded in the same month of the previous year.
Angel One slipped 1.94%. The company reported that its gross client acquisition declined 16.6% year-on-year (YoY) to 0.50 million in November 2025 from 0.60 million in November 2024.
Bajaj Finance added 1.04%. The company on Tuesday sold 2% of its stake in subsidiary Bajaj Housing Finance in the open market through a bulk deal. The transaction, carried out on 2 December 2025, is part of the broader plan to meet minimum public shareholding norms laid out for the housing finance arm. After Tuesday’s transaction, Bajaj Finance’s shareholding in the housing finance arm stands at 86.7032%.
Pine Labs shed 0.70%. The company has reported a net profit of Rs 6 crore in Q2 FY26 as against a net loss of Rs 32 crore posted in Q2 FY25. Revenue from operations grew 18% YoY to Rs 650 crore, on the back of robust growth of issuing, affordability and online payments businesses, which continue to outpace growth in the in-store payments business, in line with the company’s growth strategies.
RailTel Corporation of India lost 1.41%. The company has received order worth Rs 63.92 crore from Central Public Works Department for design and implementation of ICT network.
Global Markets:
China’s factory activity unexpectedly contracted in November, according to a private survey released Monday, as soft domestic demand continued to cast a pall over the world’s second-largest economy.
The RatingDog China General Manufacturing PMI, conducted by S&P Global, dropped to 49.9 in November, from 50.6 in October and 51.2 in September. A reading above the 50 benchmark level suggests an expansion, while one below that indicates contraction.
However, the official data released on Sunday showed that China’s factory activity had improved slightly in November but remained stuck in contraction for the eighth consecutive month, while services weakened as the boost from earlier holidays faded.
The manufacturing purchasing managers’ index rose to 49.2, up 0.2 points from October, the National Bureau of Statistics said.
The latest figure is unchanged from October’s inflation rate, supporting the case for the central bank to keep interest rates on hold. The Bank of Korea had kept rates unchanged at 2.5% for a fourth straight meeting last Thursday.
South Korea's revised third-quarter GDP numbers indicated that country’s economy grew at 1.8% year on year, compared to 1.7% in the initial estimate, data from the central bank showed Wednesday.
Australia's GDP expanded 2.1% year on year, marking its strongest expansion since the third quarter of 2023, but fell short of the widely reported 2.2% expected growth rate.
Eurozone inflation stood at 2.2% in November, marking a slight rise from the previous month, flash data from data agency Eurostat showed Tuesday. The latest consumer price index reading is just a shade above the European Central Bank’s 2% target.
The U.S. fresh labour data added to the uncertainty. Weekly jobless claims fell sharply by 27,000 to a seasonally adjusted 191,000, the lowest since September 2022, though holiday-related distortions may have amplified the decline. Earlier in the week, ADP reported a 32,000 drop in private-sector payrolls, the steepest fall in more than two and a half years. Challenger, Gray & Christmas noted that announced job cuts dropped sharply in November, although hiring plans remained subdued.