TLDR
Market Recap: December 05, 2025
On December 05, Equities cheered the RBI’s 25 bps repo cut to 5.25 percent, with rate sensitives leading a broad risk-on session. The Sensex closed at 85,712.37 (up 447 points, +0.52 percent) and the Nifty 50 at 26,186.45 (up 152.70 points, +0.59 percent). Broader indices such as the Nifty Midcap 100 and Smallcap 100 did not materially diverge from the large caps, suggesting no major risk-off in high beta names. India’s volatility gauge, India VIX, remained within its recent range, consistent with a still-benign near-term risk backdrop, while the rupee hovered close to the ₹90 per USD mark as traders digested the cut and awaited global central bank cues.
Key Drivers :
RBI delivers “Goldilocks” cut: Repo reduced by 25 bps to 5.25 percent on the back of near-zero inflation and 8 percent-plus growth, with the FY growth forecast raised to 7.3 percent.
Rate sensitives outperform: Banks, NBFCs, realty, and autos catch a bid as cheaper funding and better loan demand are priced in after the policy decision, lifting benchmarks from recent consolidation.
Rupee and global backdrop watched: The currency trades near record lows while markets eye potential US rate cuts and ongoing tariff noise, but domestic macro strength tempers external risks.
Today’s Top Stories:
RBI cut: Central bank trims repo to 5.25 percent, lifting rate sensitivities and improving near-term risk appetite.
Rupee: Currency trades close to ₹90 per USD, aiding exporters but keeping imported inflation worries alive.
Indices: Sensex and Nifty gain about 0.5 to 0.6 percent with better breadth and scope for a year-end push.
Exato IPO: Exato Technologies lists at a roughly 90% premium on BSE SME, signaling strong small-cap tech appetite.
JSW Steel: Stock edges higher after JFE commits ₹15,750 crore to an electrical steel JV built around JSW’s Odisha asset.
TOP STORIES
1. RBI rate cut
Gemini-2.5
Policy move: RBI cut repo by 25 bps to 5.25 percent, citing very soft inflation and strong growth prints.
Macro impact: Funding costs ease for banks, NBFCs, realty, and autos, supporting credit growth and capex sentiment.
Market reaction: Financials and rate sensitives led gains, helping indices break out of recent consolidation.
RBI cut repo by 25 bps to 5.25%, with soft inflation and solid growth. How do you see this move for markets?
2. Rupee trades near record lows
Gemini-2.5
FX move: Rupee oscillated around ₹89.7 to 90 per USD, close to record weak levels even after the policy.
Macro impact: Weaker currency supports exporters but keeps imported inflation and crude risk on the radar.
Market reaction: IT and exporter baskets saw two-way action as traders balanced FX tailwinds with global demand worries.
Rupee is trading close to 90 per dollar even after the RBI cut. What is your stance on this FX setup?
3. Indices and breadth improve post-policy
Gemini-2.5
Index move: Sensex and Nifty ended up around 0.5 to 0.6 percent, reclaiming higher ground above 85,500 and 26,000.
Breadth: Advances outpaced declines, with broader indices tracking large caps instead of underperforming like earlier in the week.
Sentiment: The cut plus hopes of eventual Fed easing boosted odds of a year-end rally, assuming FII selling stays controlled.
Sensex and Nifty gained about 0.5-0.6% with better breadth post policy. How are you positioned now?
4. Exato Technologies’ SME listing pops
Gemini-2.5
Listing: Exato Technologies debuted on BSE SME at about ₹266 versus a ₹140 issue price, roughly a 90 percent premium, and touched nearly ₹279 intraday.
Business: Noida-based IT and digital solutions firm riding demand for outsourced tech and software services from SMEs.
Market reaction: Shares held most gains through the day, underscoring strong risk appetite in SME tech IPOs.
Exato Technologies listed around 90% above IPO price on BSE SME. How do you view this kind of SME tech debut?
5. JSW Steel gains on JFE JV clarity
Gemini-2.5
Deal: Japan’s JFE Steel will invest about ₹15,750 crore into a JV housing JSW’s Bhushan Power and Steel plant in Odisha to build electrical steel capacity.
Strategic angle: JV structure boosts value-added electrical steel output while sharing capex and technology risk with JFE.
Market reaction: JSW Steel has climbed roughly 2 percent over the last couple of sessions as brokerages stayed positive on earnings accretion.
JFE is investing about ₹15,750 crore into an electrical steel JV with JSW’s Odisha asset. Your call on JSW Steel?
GYAANI HOT TAKES
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