The headline equity benchmarks traded with moderate gains in the afternoon trade, after the RBI trimmed the repo rate by 25 basis points to 5.25%. Traders are tracking ongoing IPO activity, crude oil trends and global cues. Market participants are also looking ahead to the US Personal Consumption Expenditure data scheduled for release on Friday, which could influence Fed policy. The Nifty traded above the 26,150 mark.
IT, PSU bank and realty shares advanced, while media, FMCG and consumer durables shares corrected.
At 13:30 IST, the barometer index, the S&P BSE Sensex advanced 455.06 points or 0.53% to 85,720.38. The Nifty 50 index gained 154.80 points or 0.60% to 26,188.85.
In the broader market, the S&P BSE Mid-Cap index rose 0.16% and the S&P BSE Small-Cap index slipped 0.74%.
The market breadth was negative. On the BSE, 1,724 shares rose and 2,269 shares fell. A total of 203 shares were unchanged.
Gainers & Losers:
Shriram Finance (up 3.15%), Bajaj Finserv (up 2.59%), Bajaj Finance (up 2.45%), Hindalco Industries (up 2.10%) and SBI Life Insurance Company (up 1.97%) were the major Nifty50 gainers.
Hindustan Unilever (down 3.77%), Trent (down 0.66%), ETERNAL (down 0.57%), Sun Pharmaceutical Industries (down 0.54%) and Tata Motors Passenger Vehicles (down 0.50%) were the major Nifty50 losers.
Economy:
The Reserve Bank of India Governor Sanjay Malhotra, announcing the fifth bi-monthly policy review of FY26, said that RBI's MPC has unanimously decided to reduce the policy repo rate by 25 basis points to 5.25%, keeping its stance neutral.
The MPC voted unanimously to reduce the rate under the liquidity adjustment facility, which also revised the standing deposit facility (SDF) rate to 5% and the marginal standing facility (MSF) and bank rate to 5.50%, while maintaining a neutral stance.
The RBI raised its real GDP growth forecast for FY26 to 7.3% from 6.8% earlier, expecting 7% growth in Q3 and 6.5% in Q4. For Q1 and Q2 FY27, growth is projected at 6.7% and 6.8%, respectively.
The CPI inflation forecast for FY26 was lowered to 2% from 2.6%, with expectations of 0.6% in Q3 and 2.9% in Q4. CPI for Q1 and Q2 FY27 is projected at 3.9% and 4%.
The MPC noted that headline inflation has eased sharply due to exceptionally benign food prices, while core inflation has softened and is expected to stay anchored near the 4% target in the first half of FY27.
The committee said the balance between growth and inflation continues to offer policy space to support economic momentum.
The minutes of the meeting will be published on 19 December, and the next MPC meeting will be held from 4 to 6 February 2026.
Stocks in Spotlight:
Z-Tech (India) advanced 2.69% after the company announced that it has secured new urban development projects worth Rs 7.09 crore from the Municipal Corporation of Delhi (MCD).
Lupin rose 0.46%. The company announced that it has received tentative approval from the U.S. Food and Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Siponimod Tablets in 0.25 mg, 1 mg and 2 mg.
RailTel Corporation of India added 0.48%. The company has received order worth Rs 63.92 crore from Central Public Works Department for design and implementation of ICT network.
Kesoram Industries surged 19.85% after Frontier Warehousing announced an open offer to acquire 8.07 crore shares, representing a 26% stake, at Rs 5.48 per share.
ZEN Technologies gained 1.57% after the company announced that it has secured orders worth Rs 120 crore from the Ministry of Defence (MoD), Government of India.
Global Markets:
Most European markets advanced on Friday, while Asian markets traded mixed, as Wall Street finished largely flat. Investors weighed growing expectations of a Federal Reserve rate cut ahead of next week's Fed policy decision.
US equities ended largely unchanged overnight, supported by firm bets that the Fed will ease policy next week while investors await a key inflation reading. The Dow Jones Industrial Average slipped 0.07%, the S&P 500 rose 0.11% and the NASDAQ Composite added 0.22%.
The probability of a 25-basis-point cut at the Fed's December 9-10 meeting has risen, with futures now pricing in about an 87% chance.
Fresh labour data added to the uncertainty. Weekly jobless claims fell sharply by 27,000 to a seasonally adjusted 191,000, the lowest since September 2022, though holiday-related distortions may have amplified the decline. Earlier in the week, ADP reported a 32,000 drop in private-sector payrolls, the steepest fall in more than two and a half years. Challenger, Gray & Christmas noted that announced job cuts dropped sharply in November, although hiring plans remained subdued.
These indicators arrive against the backdrop of an unprecedented 43-day government shutdown that postponed the Bureau of Labor Statistics' official jobs report, now expected only after the Fed's policy decision.
In corporate news, Hewlett Packard Enterprise shares fell 9% in after-hours trade after the company missed fourth-quarter revenue expectations, reporting $9.68 billion against the consensus estimate of $9.94 billion.
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