Daijiworld Media Network - Mumbai
Mumbai, Dec 5: Indian equity markets ended on a positive note on Friday after the Reserve Bank of India (RBI) unexpectedly cut the repo rate by 25 basis points to 5.25%, while maintaining a neutral monetary stance. The decision by the Monetary Policy Committee (MPC), chaired by Governor Sanjay Malhotra, boosted investor sentiment and triggered a strong market response.
The RBI also sharply revised its FY26 inflation forecast downward to 2% from 2.6% and raised its growth projection to 7.3% from 6.8%, further energising market mood.
Following the announcement:
• Sensex closed at 85,712.37, up 447.05 points (0.52%)
• Nifty ended at 26,186.45, rising 152.7 points (0.59%), comfortably holding above the key 26,000 level
Analysts noted that the 26,000–26,100 zone remains a strong support band, while a sustained close above 26,300 could open the path to 26,450–26,600.
In broader market performance, the Nifty MidCap index gained 0.49%, whereas the Nifty SmallCap index slipped 0.57%.
Most sectoral indices finished in the green, with Nifty PSU Bank leading gains at 1.5%. Banking, auto, IT, metal, realty, oil & gas, and chemicals all witnessed buying interest. On the downside, media, pharma, FMCG, and consumer durables ended lower.
Top Sensex gainers included:
• State Bank of India
• Bajaj Finserv
• Maruti Suzuki
• Bajaj Finance
• HCL Tech
Major laggards were:
• Hindustan Unilever
• Eternal
• Trent
• Sun Pharma
• Tata Motors PV
• Bharat Electronics
Market experts said the unexpected rate cut—especially after strong Q2 GDP numbers—sparked a risk-on rally across equities. The combination of lower inflation projections and supportive liquidity measures further strengthened investor confidence.