Sensex Soars 447 Points After RBI Reduces Repo Rate: 10 Main Points from Indian Stock Market Today

The Indian bourses had an excellent day on Friday, December 5, as the Sensex gained 447 points and closed at 85,712.37, and the Nifty 50 climbed 153 points to 26,186.45. These positive results were supported by the RBI’s unexpected rate cut of 25 basis points to 1.75% and its plan to infuse ₹1.45 lakh crore liquidity through bond purchases and dollar-rupee swaps. The BSE Midcap index gained a small amount of 0.21%, while the Smallcap index fell by 0.67%.

RBI's unexpected rate cut and a prolonged monetary policy shift not only increased stock market gains but also added about ₹1 lakh crore to the investors' wealth as the overall market capitalization of BSE-listed companies reached around ₹471 lakh crore.

Top 10 Highlights from Indian Stock Market Today

1. Market Surge Brought on by RBI Rate Cut

The domestic equity markets move upwards as a result of the Reserve Bank of India (RBI) cutting interest rates by 25 bps and surprising everyone, who thought that the central bank would keep the rate at the same level owing to record low inflation and strong economic growth. The downward revision of inflation expectations and the suggested liquidity injection through open market operations (OMO) purchases have further strengthened the bullish mood among the investors.

“Vinod Nair, who is the Head of Research at Geojit Investments, stated: “The unexpected rate cut, in conjunction with lower inflation predictions and the provision of liquidity to the market, resulted in the activation of a very strong ‘risk-on’ attitude in equities.”

2. Nifty 50 Top Gainers

Among the 50 stocks, 38 closed positive, where, Shriram Finance (+3.04%), SBI (+2.49%) and Bajaj Finserv (+2.13%) being the top gainers.

3. Nifty 50 Top Losers

The shrinkage was led by HUL (−4.92%), Eternal (−1.35%), and InterGlobe Aviation (−1.27%). HUL shares, which were traded ex-Kwality Wall’s ice cream business today after the demerger, were also impacted by this.

4. Sectoral Performance

The sectors of banking and financial services were the ones that pulled the market up, with Nifty Bank gaining by 0.82%, Financial Services by 0.98%, PSU Bank by 1.51%, and Private Bank by 0.49%; Nifty IT (0.90%) and Auto (0.74%) also performed well.

5. Most Active Stocks by Volume

The shares that had the highest trading volumes on NSE were Vodafone Idea (98.4 crore shares), Filatex Fashions (28.62 crore), and Easy Trip Planners (13.56 crore).

6. BSE Stars: 7 Stocks Surge Over 15%

Kesoram Industries, Keynote Financial Services, and Rollatainers were among the stocks listed on BSE that experienced a price increase of more than 15% in a single day.

7. Advance-Decline Ratio

Among the BSE-listed stocks, 1,805 stocks got advanced, 2,342 stocks got declined, and 181 stocks remained unchanged, thus showing a mixed market breath despite over all the positive momentum that prevailed as per the data of 4,328 BSE-listed stocks.

8. Stocks Hitting 52-Week Highs

91 stocks that include Hero MotoCorp, Aditya Birla Capital, Hindustan Copper, and National Aluminium Company reached their 52-week highs today.

9. Stocks Hitting 52-Week Lows

At the other end, 304 stocks including UBL, REC, PFC, IREDA, and Thermax hit their 52-week lows intraday.

10. Nifty Technical Outlook

Sudeep Shah, the Head of Technical & Derivatives Research at SBI Securities, has identified the 26,300–26,350 area as the main resistance. If the market consistently moves above 26,350, the next target would be 26,500–26,700, while 26,000–25,950 should be a strong support.

Rupak De, Senior Technical Analyst at LKP Securities, reported bullish momentum: “The hourly chart indicates a breakout from the recent consolidation. RSI shows strong momentum. The short-term trend is positive; thus, buying on dips may be favored as long as Nifty stays above 26,000.”

The RBI’s decision to cut interest rates along with other measures aimed at the market have distinctly revitalized Indian stocks such that investors see Fridays as trust-increasing sessions before the year-end surge.