Indian stock markets kicked off the trading session on Thursday, December 5, 2025, on a negative note, with key indices slipping into the red. Investor sentiment turned cautious as market participants awaited the crucial monetary policy decision from the Reserve Bank of India (RBI), scheduled for announcement later in the day.
Market Opening: A Cautious Start
The benchmark S&P BSE Sensex opened lower, dropping 178.42 points or 0.21 percent to 83,947.08. Similarly, the broader Nifty50 on the National Stock Exchange began the day at 25,324.65, down 49.95 points or 0.20 percent. The market's tentative opening reflected the prevailing wait-and-watch approach ahead of the RBI's Monetary Policy Committee (MPC) meeting outcome.
Broader market indices also mirrored the weakness. The Nifty Midcap 100 index fell by 0.30 percent, while the Nifty Smallcap 100 index declined by 0.27 percent in early trade, indicating a broad-based selling pressure.
Sectoral Performance and Stock-Specific Action
Sectoral indices presented a mixed picture at the opening bell. The Nifty IT index emerged as the top laggard, falling over 1 percent, which significantly weighed on the overall market sentiment. This decline in IT stocks was largely influenced by weak cues from global technology peers and concerns over the sector's near-term outlook.
On the other hand, some sectors showed resilience. The Nifty Realty and Nifty Media indices managed to trade in positive territory, gaining 0.60 percent and 0.40 percent respectively. The Nifty Bank index, which is highly sensitive to RBI policy actions, was trading with minor losses, down just 0.10 percent, as traders avoided large bets.
Among the major Nifty constituents, top losers included prominent IT and technology names like Infosys, Tech Mahindra, and Wipro. In contrast, stocks such as Adani Ports, Power Grid Corporation, and Apollo Hospitals were among the few gainers, providing some support to the indices.
Global Cues and the RBI Policy Overhang
The negative opening in Indian markets was also influenced by tepid trends in Asian equity markets. Major indices across the Asia-Pacific region, including Japan's Nikkei and Hong Kong's Hang Seng, were trading lower, creating a weak backdrop for risk assets globally.
However, the primary focus for domestic investors remained squarely on the RBI's bi-monthly monetary policy announcement. The MPC, led by Governor Shaktikanta Das, began its three-day deliberations on December 3. Most economists and market analysts expected the central bank to maintain a status quo on key policy rates, holding the repo rate steady. The market was keenly awaiting the RBI's commentary on inflation forecasts, growth projections, and its stance on liquidity management, which would set the tone for market direction in the near term.
The central bank's decision and its outlook on the economy are critical, especially in the context of recent macroeconomic data and global financial conditions. Any surprise in the policy stance or a change in the inflation guidance could trigger heightened volatility in the latter half of the trading session.
As the trading day progresses, all eyes will be on the RBI Governor's address scheduled for 10:00 AM. The market's trajectory for the rest of the session and possibly the week will likely be determined by the nuances of the policy statement and the subsequent press conference.
