Indian stock market got off to a slow start on December 5, 2025, with the benchmark indices marginally lower as traders awaited the decision of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) – which ultimately unanimously cut the repo rate by 25 basis points to 5.25% – and also kept an eye on the important bilateral visit of Russian President Vladimir Putin. Nifty 50 opened at 25,999.80, down 33.95 points (-0.13%), while BSE Sensex closed at 85,125.48, down 139.84 points (-0.16%), reflecting pre-announcement jitters amid rupee weakness at ₹89.98/USD and FPI outflows.
Following the announcement, sentiment turned bullish: By afternoon, Nifty rose 0.38% to 26,131.90 and Sensex rose 0.35% to 85,564.35 on dovish stance – fourth cut in 2025, totaling 125 bps – and liquidity boost from ₹1 lakh crore OMO purchases and $5B forex swaps Got stronger. Governor Sanjay Malhotra maintained a ‘neutral’ stance, upgrading FY26 GDP to 7.3% (Q2 actual: 8.2%), while reducing inflation to 2% amid record-low CPI 0.25%. He dismissed rupee concerns, saying: “We let it find its level; the external sector is comfortable,” adding that CAD stands at 1.3% of GDP.
Banking expert Ajay Bagga stressed the dual focus of policy: “Markets are not just looking at rates, but also at the sustainability of inflation and ease of growth for further guidance.” Overall, new loan rates have come down by 100 bps and deposit rates by 89 bps since February, easing EMIs on EBLR loans worth ₹50 lakh crore. Ponmudi R of Enrich Money expects Nifty to remain in the range of 25,900-26,100 in the rising wedge, with 25,900 as the key support. Caution was seen in major indices: Nifty 100 fell 0.13%, midcaps rose slightly, smallcaps slipped slightly. Sectorally, IT, Metal, Pharma and Healthcare witnessed marginal gains; Auto (-0.10%), FMCG (-0.11%), Private Bank (-0.26%) and Consumer Durables (-0.33%) were the laggards. Defense stocks rose 1% on Putin’s news.
Putin, who arrived on Thursday evening on his first visit to India since 2021, had a private dinner with PM Modi ahead of the 23rd annual summit – marking 25 years of ties between the two countries. Friday’s Agenda: Guard of Honor at Rashtrapati Bhavan, Tribute at Rajghat, Bilateral talks at Hyderabad House on Defense (Supply of S-400, Su-57 production, BrahMos NG), Energy (oil stability amid US tariffs), Trade (₹100B+ by 2030) and BRICS/SCO alignment. The whirlwind 30-hour visit will end with a joint business forum and state banquet that shows resilience against Western sanctions.
As volatility eases, experts believe sustained gains could be seen if transmission picks up – Goldilocks remains in place.
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