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Major indices witness consolidation as mixed cues neutralise macro tailwinds
Dec-05-2025

Markets witnessed consolidation during the passing week as positive reports on macro-economic front were offset by profit-booking, foreign outflows. Sentiment was further pressured by the rupee hitting a record low against the dollar. However, a rebound on the final trading day, after the RBI cut the repo rate by 25 bps to 5.25%, helped the indices close the week on a flat note.

Some of the major developments during the week are:

RBI cuts repo rate by 25 bps to 5.25%: The RBI has decided to cut the short-term lending rate or repo rate by 25 basis points (bps) to 5.25 per cent, in a bid to further bolster economic growth, which rose to a six-quarter high of 8.2 per cent in the second quarter of the current financial year.

India's GDP grows 8.2% in Q2 FY26: India’s economy grew by 8.2% in July-September quarter (Q2) of the fiscal year 2025-26 against the growth rate of 5.6% during Q2 of FY 2024-25, helped by robust manufacturing and a buoyant services sector, especially financial, real estate and professional services. 

India’s industrial output growth slows to 0.4% in October: India’s Index of Industrial Production (IIP) grew just 0.4% in October, a 14-month low that indicated a sharp slowdown in the economy. The industrial production fell short of September’s 4% growth. 

India’s manufacturing PMI eases to 56.6 in November: India Manufacturing Purchasing Managers’ Index (PMI) eased to 56.6 in November from 59.2 in October, but it was comfortably above the neutral mark of 50.0 and its long-run average of 54.2.

Services PMI rises to 59.8 in November: Indian services sector growth accelerated in the month of November, boosted by a faster upturn in new business intakes. The seasonally adjusted HSBC India Services PMI Business Activity Index surged to 59.8 in November from 58.9 in October.

BSE movement for the week

The Bombay Stock Exchange (BSE) Sensex increased 5.70 points or 0.01% to 85,712.37 during the week ended December 05, 2025. The BSE Midcap index losses 593.60 points or 1.26% to 46,617.80, while Smallcap index slipped 960.48 points or 1.85% to 51,093.23. On the sectoral front, S&P BSE Information Technology was up by 1,058.90 points or 2.92% to 37,364.44, S&P BSE TECK was up by 456.57 points or 2.49% to 18,756.40 and S&P BSE Auto was up by 362.91 points or 0.59% to 62,112.92 were the top gainers, while S&P BSE Capital Goods was down by 1,561.22 points or 2.26% to 67,647.37, S&P BSE Power was down by 112.08 points or 1.69% to 6,501.06, and S&P BSE Consumer Durables was down by 1,039.70 points or 1.68% to 60,828.52 were the top losers on the BSE.

NSE movement for the week

The Nifty decreased 16.50 points or 0.06% to 26,186.45. On the National Stock Exchange (NSE), Nifty Mid Cap 100 decreased 448.65 points or 0.73% to 60,594.60, and Nifty Next 50 lost 427.60 points or 0.62% to 68,709.85, while Nifty IT was up by 1298.15 points or 3.47% to 38,703.65, and Bank Nifty was up by 24.50 points or 0.04% to 59,777.20.

FII transactions during the week

Foreign Institutional Investors (FIIs) were net sellers in equity segment in the week, with gross purchases of Rs 63,647.09 crore and gross sales of Rs 75,467.19 crore, leading to a net outflow of Rs 11,820.10 crore. They also stood as net sellers in the debt segment with gross purchases of Rs 10,704.10 crore against gross sales of Rs 11,234.92 crore, resulting in a net outflow of Rs 530.82 crore. In hybrid segment, FIIs stood as net buyers, with gross purchases of Rs 191.01 crore and gross sales of Rs 166.34 crore, leading to a net inflow of Rs 24.67 crore.

Industry and Economy

The Monetary Policy Committee (MPC) under the Reserve Bank of India (RBI) at its fifth bi-monthly monetary policy for the current fiscal (FY26) has unanimously decided to cut the short-term lending rate or repo rate by 25 basis points (bps) to 5.25 per cent, in a bid to further bolster economic growth, which rose to a six-quarter high of 8.2 per cent in the second quarter of the current financial year. Consequently, the standing deposit facility (SDF) rate shall stand adjusted to 5.00 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 5.50 per cent. The MPC decided to continue with the neutral stance. 

Outlook for the coming week

In the passing week, Indian markets ended flat amid weak macroeconomic data. India’s industrial production growth slowed to a 14-month low of 0.4 per cent in October, down from an upwardly revised 4.6 per cent in September. 

On the economic front, market-participants would be eyeing the data of India’s Consumer Price Index (CPI), which is scheduled to be released on December 12. On the same day, market-participants would also be watching the data of bank loan growth, deposit growth and foreign exchange reserves data. 

On the global front, investors will be eyeing macro-economic reports from world’s largest economy, United States, starting with Consumer Inflation Expectations on December 08, Redbook YoY on December 09, Fed Interest Rate Decision, FOMC Economic Projections, Balance of Trade, Producer Prices Index on December 11, Fed Balance Sheet, Baker Hughes Oil Rig Count on December 12.

Top Gainers 

  • Wipro up by 4.15% was the top gainer on Nifty for the week - Wipro has completed acquisition of the Digital Transformation Solutions (DTS) business unit of HARMAN, following the completion of relevant regulatory approvals. The DTS acquisition was originally announced on August 21, 2025, and with the successful closure of the deal, DTS will begin operating as part of Wipro’s Engineering Global Business Line.
  • Tech Mahindra up by 4.04% was another top gainer on Nifty for the week - Tech Mahindra has signed a MOU with Strangeworks, a leading quantum computing software company with operations in Austin and India. The MoU outlines a collaboration to deliver quantum and quantum-inspired optimization solutions across key sectors, including finance, pharmaceuticals, supply chain management, logistics, insurance, and energy.

Top Losers 

  • Interglobe Aviation down by 9.27% was the top loser of the week on Nifty - IndiGo is currently facing significant operational disruptions primarily due to an acute shortage of crew, resulting in widespread flight cancellations across major airports. In recent days, the total number of cancelled flights has exceeded 1,000, causing prolonged queues, passenger inconvenience, and logistical challenges. 
  • Max Healthcare Institute down by 5.54% was another top loser of the week on Nifty - The stock of the company declined despite report that it has joined hands with Australia-based Monash University to establish a long-term partnership. The strategic association aims to accelerate scientific breakthroughs, with the first flagship initiative centered on advancing research in triple-negative breast cancer.

Technical viewpoints

During the week, CNX Nifty touched the highest level of 26,325.80 on December 1 and lowest level of 25,891.00 on December 3. On the last trading day, the Nifty closed at 26,186.45 with weekly loss of 16.50 points or 0.06 percent. For the coming week, 25,943.03 followed by 25,699.62 are likely to be good support levels for the Nifty, while the index may face resistance at 26,377.83 and further at 26,569.22 levels.

US Market

The U.S. markets traded higher during the week as fall in private sector employment added to renewed optimism of interest rate cut by Federal Reserve at its monetary policy meeting next week.

Some of the major developments during the week are:

U.S. jobless claims unexpectedly drop to three-year low: Initial jobless claims slid to 191,000 in the week ended November 29th, a decrease of 27,000 from the previous week's revised level of 218,000.

Industrial production in U.S. edges slightly higher in September: The Fed said industrial production inched up by 0.1 percent September after dipping by a revised 0.3 percent in August.

U.S. services index unexpectedly indicates slightly faster growth in November: The Institute for Supply Management said its services PMI inched up to 52.6 in November after climbing to 52.4 in October. 

Private sector employment in U.S. unexpectedly decreases in November: ADP said private sector employment fell by 32,000 jobs in November after climbing by an upwardly revised 47,000 jobs in October. 

U.S. manufacturing index unexpectedly edges lower in November: The Institute for Supply Management said its manufacturing PMI slipped to 48.2 in November from 48.7 in October, with a reading below 50 indicating contraction.

European Market

European markets remained subdued during the passing week, as investors assessed the regional economic data and awaited the monetary policy decision of the Federal Reserve next week.

Some of the major developments during the week are:

Eurozone retail sales remain flat in October: The data published by Eurostat showed that on a monthly basis, retail sales logged a flat change in October versus a 0.1 percent rise in September, which was the first increase in three months.

Sweden inflation eases to 6-month low: The flash data from Statistics Sweden showed that the consumer price index, or CPI, rose 0.3 percent year-over-year in November, following October's stable increase of 0.9 percent. 

UK services growth eases in November: The final survey results from S&P Global showed that the S&P Global Services Purchasing Managers' Index posted 51.3 in November, down from 52.3 in October. The flash score was 50.5.

Eurozone producer prices rise marginally: The Eurostat reported that producer prices edged up 0.1 percent month-on-month in October, offsetting a 0.1 percent drop in September. 

Eurozone private sector growth strongest since 2023: The final data from S&P Global revealed that the HCOB final composite output index rose to 52.8 in November from 52.5 in the previous month. The reading was above the initial score of 52.4.

Asian Market

Asian markets, barring Shanghai Composite Index, traded in green during the passing week, as softer than expected U.S. private sector jobs data raised expectations of a Fed rate cut next week. 

Some of the major developments during the week are:

Japan household spending slumps in October: The government data showed household spending in Japan unexpectedly slumped at the fastest pace in nearly two years in October. Consumer spending fell 3.0% in October from a year earlier.

China’s official NBS Manufacturing PMI edges up in November: China’s official NBS Manufacturing PMI edged up to 49.2 in November 2025 from October’s six-month low of 49.0, matching market expectations.

China manufacturing PMI hits 4-month low: A private survey showed the RatingDog China General Manufacturing PMI fell to 49.9 in November 2025 from 50.6 in the previous month, hitting its lowest level since July and missing market forecasts of 50.5.

China's services growth slips to 5-month low in November: A private survey showed the RatingDog China General Services PMI declined to 52.1 in November 2025, down from 52.6 in October, but remained above market expectations of 52.0.

South Korea GDP revised up to 1.3% on quarter in Q3: South Korea's gross domestic product (GDP) gained a seasonally adjusted 1.3% on quarter in the third quarter of 2025. That's up from the 1.2% increase suggested in last month's advance estimate.
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