Indian stocks rise after RBI rate decision

Friday, December 05, 2025 at 10:15 UTC+01:00 (+0100), India, Mumbai

News category : Macroeconomic Events

Following the Reserve Bank of India’s decision to cut the repo rate on December 5, 2025, Indian stock benchmarks such as the Sensex and Nifty 50 closed higher, reversing earlier weekly losses. Rate-sensitive sectors including banking, autos, and real estate showed strength, reflecting the market’s positive reception to monetary easing. Analysts noted that lower borrowing costs aid loan demand and corporate profitability, bolstering equity sentiment. Eleven of sixteen major sectors had fallen during the week, but Friday’s gains helped trim those declines. The central bank’s easing was broadly anticipated and priced into markets, supporting expectations of continued accommodative conditions as 2026 approaches.

Overall market impact

Mild bullish market impact - strength score : 75/100

Detailed breakdown of market impact over instruments, sectors, and asset classes

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Impacted instruments :

Sensex

Nifty 50

Financials equity sector

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