Markets opened on a subdued note on Friday morning, with investors exercising caution ahead of the Reserve Bank of India’s monetary policy announcement due later in the day. The Sensex opened at 85,125.48 against its previous close of 85,265.32 and was trading at 85,283.98, up 18.66 points or 0.02 per cent. The Nifty opened at 25,999.80 compared to its previous close of 26,033.75 and stood at 26,039.20, up 5.45 points or 0.02 per cent.
Shriram Finance emerged as the top gainer on the Nifty50, rising 1.87 per cent to ₹843.60, followed by Kotak Mahindra Bank which gained 0.94 per cent to ₹2,155.50. Bajaj Finance advanced 0.86 per cent to ₹1,038.00, while IT majors Wipro and Infosys climbed 0.85 per cent and 0.79 per cent to ₹259.12 and ₹1,610.30 respectively.
On the losing side, Hindustan Unilever witnessed the steepest decline, falling 3.25 per cent to ₹2,343.20. InterGlobe Aviation dropped 1.97 per cent to ₹5,329.50, while Trent shed 0.81 per cent to ₹4,181.50. Tata Steel and Reliance Industries declined 0.80 per cent and 0.74 per cent to ₹165.43 and ₹1,524.30 respectively.
“Global markets are trading mixed in early Asian hours as investors turn cautious ahead of next week’s US Federal Reserve policy outcome,” said Ponmudi R, CEO of Enrich Money. He noted that Japan’s Nikkei was down around 1.3 per cent while South Korea’s Kospi was trading 0.33 per cent higher.
The primary market focus remains on the RBI’s monetary policy outcome, with market participants divided on whether the central bank will opt for a rate cut or maintain status quo. “More important than the rate action, which is very tricky in the context of low inflation, high growth and depreciating rupee, the market will be keen to know what the governor says about the emerging macro trends,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
“A rate cut in the present context will be negative for banks since it will impact their NIMs and ability to mobilise deposits. On the contrary, a rate cut will be positive for rate sensitives like autos and real estate,” Dr. Vijayakumar added.
The Nifty is expected to remain range-bound between 25,900 and 26,100, with 26,250 acting as a crucial resistance level. “Nifty is expected to remain range-bound between 25,900 and 26,100, with the last two sessions closing above the rising trendline support, confirming 25,900 as the key demand base,” Ponmudi said.
Foreign Institutional Investors extended their selling streak for the third consecutive session, offloading equities worth ₹1,944 crore on December 5, while Domestic Institutional Investors continued their steady buying, adding ₹3,661 crore during the same session.
Among sectors, IT witnessed selective buying while banking stocks traded mixed ahead of the policy announcement. “Bank Nifty is trading within a rising channel and is currently holding support after the recent dip, continuing to trade above the 59,000–58,900 support zone,” said Ponmudi.
The Indian rupee recovered from its all-time low of 90.42 to 89.97 on Thursday, signaling some stability in the currency market. “Rupee’s sharp recovery yesterday to 89.97 from the low of 90.42 is signalling some sort of stability in the currency market,” Dr. Vijayakumar noted.
WTI crude hovering near 59 dollars per barrel is offering some comfort for India on both the inflation and current account fronts, according to market analysts.
Published on December 5, 2025
