Indian equity benchmarks closed with robust gains on Friday, December 5, powered by a dual boost from the Reserve Bank of India (RBI). The central bank's decision to cut the key interest rate and inject substantial liquidity into the financial system revitalized investor sentiment, leading to a broad-based rally.
Market Rally Fueled by RBI's Policy Moves
The Sensex climbed 447 points, or 0.52%, to settle at 85,712.37. Similarly, the Nifty 50 advanced by 153 points, or 0.59%, to close at 26,186.45. The indices built on the momentum from the previous trading session, with the Nifty finishing near the day's peak. The trading session was marked by initial volatility and caution, but buying in heavyweight stocks across sectors strengthened as the day progressed.
The primary catalyst for the upswing was the outcome of the RBI Monetary Policy Committee (MPC) meeting. The committee unanimously reduced the repo rate by 25 basis points to 5.25% while maintaining a neutral stance. In a significant move to ensure ample liquidity, the RBI also unveiled plans to inject ₹1.45 lakh crore into the system through bond purchases and dollar-rupee swaps.
"The RBI's policy served as the key catalyst for the rebound. The rate cut, along with an upgraded FY26 GDP forecast to 7.3% and a lowered CPI inflation projection to 2%, triggered fresh buying in rate-sensitive financials and NBFCs," said Ajit Mishra, SVP of Research at Religare Broking Ltd.
Broader Market Shows Mixed Trend
While the frontline indices posted solid gains, the performance of the broader market was divergent. The BSE Midcap index edged higher by 0.21%. However, the BSE Smallcap index slipped 0.67%, indicating selective profit-taking in smaller stocks. Sectorally, the gains were led by banking, financial services, and IT indices, which contributed significantly to the market's upward move.
Key Stocks in Focus for the Coming Sessions
Several companies made significant announcements that are likely to keep them in the spotlight:
CEAT approved raising up to ₹250 crore via unsecured NCDs and an investment of IDR 3,800 million in its Indonesian arm, PT CEAT Tyres Indonesia.
Biocon's subsidiary, Biocon Pharma, received tentative approval from the US FDA for its ANDA for carbidopa and levodopa extended-release capsules.
Cochin Shipyard signed a major agreement with Denmark's Svitzer to build four fully electric TRAnsverse 2600E tugs, with an option for four more.
Dynamite Technologies inked a strategic deal with Dassault Aviation to produce and assemble the entire rear fuselage for the new Falcon 6X business jet.
Life Insurance Corporation of India (LIC) saw a change in its board, with Shalini Pandit appointed as the Government Nominee Director, replacing Parshant Kumar Goyal.
ONGC board cleared the reappointment of Arun Kumar Singh as Chairman and CEO, effective December 7, 2025.
Lenskart shares will be monitored as the one-month shareholder lock-in period expires on December 8.
Ola Electric commenced large-scale deliveries of its S1 Pro+ model featuring the new, domestically developed 4,680 Bharat Cell battery pack, promising better range and safety.
RailTel secured a ₹14.4 crore overseas order from the Ministry of External Affairs to supply 2,000 AI-powered laptops.
Dabur India received a 'no objection' letter from NSE for its proposed Scheme of Amalgamation with Sesa Care.
The combined effect of accommodative monetary policy and positive stock-specific developments helped the markets overcome mixed global cues, setting a positive tone as the week concluded.
