Market Performance - Indian equity benchmarks experienced strong gains, with the Sensex closing at 85,712.37, up 447.05 points or 0.52 per cent, and the Nifty advancing 152.70 points or 0.59 per cent to settle at 26,186.45 [1] - The Nifty Bank index rose 488.50 points or 0.82 per cent to 59,777.20, while the Nifty Financial Services surged 270.45 points or 0.98 per cent to 27,881.90 [4] Central Bank Actions - The Reserve Bank of India (RBI) cut the repo rate by 25 basis points to 5.25 per cent, marking a total of 125 basis points in cumulative cuts since February 2025, driven by record low retail inflation of 0.25 per cent in October [2] - The RBI also announced ₹1 lakh crore of open market operations in government securities and a three-year dollar-rupee buy-sell swap of 5 billion USD to inject durable liquidity into the system [2] Sector Performance - Banking and financial services stocks led the market advance, with notable gains from Shriram Finance (up 3.04 per cent), State Bank of India (up 2.49 per cent), and Bajaj Finserv (up 2.13 per cent) [4] - The broader market showed mixed results, with the Nifty Midcap 100 index gaining 294.80 points or 0.49 per cent, while the Nifty Smallcap 100 declined 100.10 points or 0.57 per cent [5] Stock-Specific Movements - Kaynes Technologies saw a significant decline of 12 per cent due to potential governance issues, while IndiGo shares fell 1.2 per cent amid operational disruptions [6] Currency and Commodity Markets - The Indian rupee traded marginally weaker at 89.92 against the dollar, influenced by foreign institutional investor selling [7] - Spot gold prices remained above $4,220 per ounce, with WTI crude oil prices steady near $59.70 per barrel amid geopolitical tensions [7] Future Outlook - Markets are expected to focus on December-quarter results and updates on the US Federal Reserve's policy path, with immediate resistance seen around 26,300 and crucial support between 25,950 and 26,000 [8]
RBI rate cut lifts markets; Sensex surges 447 points as banking stocks rally
BusinessLine·2025-12-05 12:11