More Stories

Informist, Thursday, Dec. 4, 2025

 

By Gopika Balsubramanium

 

MUMBAI – Benchmark equity indices are expected to move in a thin range with an upward bias Friday, analysts said. Investors will track the outcome of the Reserve Bank of India's monetary policy meeting, due Friday. Market participants are divided down the middle on whether the RBI would cut the policy repo rate. The gains are likely to be capped due to investor caution amid the Indian currency hitting record lows for four consecutive days, analysts said. The short-term outlook for the market has turned positive, especially with the Nifty 50 taking support at 25900 and closing above 26000 Thursday, analysts said. 

 

"We believe the current 3-4 sessions breather should be used to accumulate quality stocks in a staggered manner for the next leg of the up move towards 26,500 levels in the coming week," Bajaj Broking said in a note. The brokerage firm expects the Nifty 50 to find support around 25900–25700 points.

 

The Nifty 50 closed Thursday's session at 26033.75 points, up 47.75 points or 0.2%. The BSE Sensex closed at 85265.32 points, up 158.51 points or 0.2%. Analysts said investors would view each dip as a buying opportunity.

 

While foreign investors have remained net sellers of Indian equities for several months now, the rupee's depreciation has become a concern amid expectations of foreign inflows in the coming months. In 2025, the rupee was the worst-performing currency among its Asian peers.  

 

"The problem is that the foreign investors may not invest in Indian equities unless the rupee stabilises, and there could be a delay in inflows." S. Chokkalingam, head of research at Equinomics Research Pvt. Ltd., said. The inflows would not come in if the currency is depreciating so much, as there would be capital erosion, he said.

 

"As for markets, the outlook is stable as the domestic institutional investors (DIIs), along with retail, dominate the market than the foreign investors, and as far as the investments from the former come in, the downside is limited," he said. "But if the rupee continues to depreciate significantly further, foreign investors might press sell on their equity investments. The currency may not depreciate significantly further if the US-India deal comes through."
 

Companies in rate-sensitive sectors such as banks, non-banking financial companies, automobile, real estate, and consumer durable goods will also be in focus Friday. While some expect a 25-basis-point repo rate cut to 5.25% Friday, others expect the rate-setting panel to hold the interest rate at 5.50%. 

 

The RBI's Monetary Policy Committee has kept the repo rate steady since June after cutting it by 100 bps since February. In June, the RBI changed its policy stance from accommodative to neutral. In the October policy, the committee said that current macroeconomic conditions and the outlook have opened up policy space to support growth. Chokkalingam said the market has already discounted a rate cut.

 

Analysts said the sentiment is also boosted by expectations of a US Federal Reserve rate cut next week. Information technology stocks would see more upside in the near term, especially amid expectations of improved earnings after a slightly better September quarter and rupee depreciation. End

 

Edited by Saji George Titus

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.