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Markets end higher as RBI cuts interest rate
Dec-05-2025

Indian equity benchmarks ended over half percent higher on Friday after the Reserve Bank of India (RBI) cut interest rates by 25 basis points in a bid to further bolster economic growth. It also raised the GDP growth projection to 7.3 per cent for the current fiscal from its earlier estimate of 6.8 per cent following robust economic performance in the July-September quarter.  

Some of the important factors in trade:

RBI lowers inflation projection to 2% for FY26: The Reserve Bank significantly lowered the inflation projection for the current fiscal to 2 per cent from 2.6 per cent estimated earlier as the economy continues to witness rapid disinflation.

India, Canada trade pact talks begin: Commerce and Industry Minister Piyush Goyal and his Canadian counterpart Maninder Sidhu held discussions on the contours, objectives and modalities for launching negotiations on a proposed free trade agreement.

Centre releases Rs 37,000 crore under Revamped Distribution Sector Scheme: The government has released about Rs 37,000 crore towards Revamped Distribution Sector Scheme (RDSS), which works out to be 38 per cent of the amount sanctioned in the Budget for the scheme.

Rupee falls marginally against US dollar: Indian rupee gave up its initial gains and settled for the day marginally lower against US dollar, after the Reserve Bank cut key benchmark interest rate for the first time in six months. 

Global front: European markets were trading higher after data showed Germany's factory orders grew more than expected in October on robust domestic demand. Asian markets ended mixed as traders remained cautious ahead of the rate decisions by the US Fed and the Bank of Japan in the coming days. They also looked ahead to key U.S. inflation data and the September income and spending report later in the day for further clues on the interest rate. 

Finally, the BSE Sensex rose 447.05 points or 0.52% to 85,712.37 and the CNX Nifty was up by 152.70 points or 0.59% to 26,186.45.      

The BSE Sensex touched high and low of 85,796.72 and 85,078.12 respectively. There were 24 stocks advancing against 6 stocks declining on the index.   

The broader indices ended mixed; the BSE Mid cap index rose 0.21%, while Small cap index was down by 0.67%.

The top gaining sectoral indices on the BSE were Bankex up by 0.86%, Metal up by 0.74%, TECK up by 0.73%, IT up by 0.64% and PSU up by 0.62%, while Capital Goods down by 0.42%, Industrials down by 0.27%, FMCG down by 0.15% and Healthcare down by 0.13% were the top losing indices on BSE.

The top gainers on the Sensex were SBI up by 2.46%, Bajaj Finserv up by 2.08%, Bajaj Finance up by 1.89%, Maruti Suzuki up by 1.80% and HCL Technologies up by 1.68%. On the flip side, Hindustan Unilever down by 5.00%, Eternal down by 1.15%, Tata Motors Passenger down by 0.83%, Sun Pharma down by 0.75% and Trent down by 0.61% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal said that India has emphasised on the need to reduce trade barriers, and boost exports to Russia with an aim to bridge the widening trade deficit between the two countries. Goyal said there are huge opportunities to expand bilateral trade and there is a need to make it more balanced.

He said sectors that hold potential to boost exports from India to Russia include consumer goods, food products, automobiles, tractors, heavy commercial vehicles, electronics like smartphones, industrial components, and textiles. He stated ‘The bilateral trade has crossed $70 billion but we cannot rest, we need to grow, we need to balance that. He said the trade gap is very skewed.

He said ‘We need to bring more diversity in our trade basket. We need to make it more balanced. We need more variety and there is so much to offer between the two countries. He added there is untapped potential which needs to be explored. Moreover, he said ‘We can take so much from Russia and we have so much to offer to Russia. Sky is the limit...and that will address the trade imbalance in the near future...we will work together to eliminate or reduce or dilute the trade barriers, if any.’

CNX Nifty touched high and low of 26,202.60 and 25,985.35 respectively. There were 38 stocks advancing against 12 stocks declining on the index.    

The top gainers on Nifty were Shriram Finance up by 3.04%, SBI up by 2.49%, Bajaj Finserv up by 2.13%, Adani Enterprises up by 2.03% and Maruti Suzuki up by 1.91%. On the flip side, Hindustan Unilever down by 3.34%, Eternal down by 1.35%, Interglobe Aviation down by 1.27%, Trent down by 0.85% and Sun Pharma down by 0.73% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 13.93 points or 0.14% to 9,724.80, France’s CAC rose 30.07 points or 0.37% to 8,152.10 and Germany’s DAX gained 129.27 points or 0.54% to 24,011.30. 

Asian markets ended mixed on Friday as investors awaited key US inflation data later in the day for direction ahead of next week's Federal Reserve meeting. Japanese markets dropped after data showed Japan's household spending logged its steepest fall in almost two years in October, an unexpected slump that threatens to complicate the Bank of Japan’s plans to lift interest rates as early as this month. Chinese shares gained ahead of key data next week including inflation, trade and producer prices, with investors also awaiting policy signals from high-level economic meetings in China. Meanwhile, Seoul shares rose as automakers surged amid reduced US tariff concerns.  

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,902.81

27.02

0.70

Hang Seng

26,085.08

149.18

0.58

Jakarta Composite

8,632.76

-7.44

-0.09

KLSE Composite

1,616.52

-4.55

-0.28

Nikkei 225

50,491.87

-536.55

-1.05

Straits Times

4,531.36

-3.78

-0.08

KOSPI Composite

4,100.05

71.54

1.74

Taiwan Weighted

27,980.89

185.18

0.66
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