The RBI’s inflation projections, other measures contributed to overall sentiment, balancing existing worries regarding the widening current account deficit and global trade developments.
Gaurvav Garg,
Lemonn Markets Desk
Mumbai, 5 December 2025: Indian markets moved higher after the RBI announced a 25 bps rate cut, which supported a broad risk-on sentiment across equities. The Nifty gained nearly 150 points to close around 26,180, with rate-sensitive sectors such as autos, real estate and NBFCs seeing notable advances on expectations of reduced funding costs. Private banks also edged up, aided by prospects of treasury gains, though concerns around net interest margins limited further upside. The RBI’s lower inflation projections and liquidity-supportive measures contributed to overall sentiment, balancing existing worries regarding the widening current account deficit and global trade developments. In the near term, markets are expected to track December-quarter results and updates on the US Federal Reserve’s policy path.
In stock-specific developments, Kaynes Technologies declined 12% after brokerage assessments pointed to potential governance issues. In the aviation sector, analysts noted that IndiGo continues to operate with comparatively higher aircraft utilisation levels, while full-service carriers such as Air India and other players including Akasa and SpiceJet generally run with lower utilisation due to structural and operational constraints.
