Mumbai, December 5, 2025 – Indian equity markets opened on a cautious note Friday, with the Sensex and Nifty 50 trading mildly lower as investors awaited the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) decision on key interest rates. The market is keenly anticipating the RBI's policy announcement, with expectations of a potential 25-bps rate cut looming.
The Nifty 50 index opened at 25,999.80, a decline of 33.95 points or 0.13 percent. The BSE Sensex followed suit, opening at 85,125.48, down by 139.84 points or 0.16 percent.
On Thursday, December 4, benchmark indices staged a mild recovery after a four-day losing streak. The Sensex ended 158.51 points higher at 85,265.32, while the Nifty rose 47.75 points to close at 26,033.75. However, the broader markets remained muted, with Midcap and Smallcap indices closing nearly flat. The BSE Midcap was down 0.19%, and the BSE Smallcap dropped 0.32%.
Market participants are closely watching the RBI Governor's statement for insights into the sustainability of disinflation and economic growth. Experts predict that the RBI may revise its inflation projections for Q4 FY2026 and FY2027 downward by approximately 0.2 percent. Simultaneously, the GDP growth forecast for FY2026 could be raised to 7 percent.
Sectoral performance at the open was mixed. Nifty IT, Metal, Pharma, and Healthcare indices opened in the green with marginal gains. The Nifty IT index had jumped 1.41% the previous day, emerging as the top gainer among sectoral indices, boosted by optimism surrounding potential US Federal Reserve rate cuts and favorable currency movements. Conversely, the Nifty Bank index was slightly down by 0.10%.
Trading activity witnessed Vodafone Idea with 120 crore shares traded, PC Jeweller with 22.45 crore shares traded, and YES Bank with 13.56 crore shares traded. Top Nifty gainers included Tech Mahindra (+1.51%), HDFC Life Insurance (+1.49%), and TCS (+1.48%), while top losers featured InterGlobe Aviation (-2.39%), Reliance Industries (-0.88%), and Hindalco Industries (-0.65%).
The rupee's movement remains a key factor, with the currency hitting a fresh all-time low of Rs 90.42 per dollar due to persistent Foreign Institutional Investor (FII) outflows and a widening trade deficit.
The market mood reflects caution as investors await the RBI's policy decisions and forward guidance, which are expected to significantly influence near-term market trends.
