RBI Policy Decision Looms! Indian Markets Set for Flat Open, Watch These Key Stocks Today

Indian stock markets are poised for a flat opening on Friday, December 5, 2025, as investors await a crucial decision from the Reserve Bank of India (RBI) regarding the repo rate. The Monetary Policy Committee (MPC) is scheduled to announce its verdict on December 6, a day that could set the tone for market movements in the near term.

Market Outlook and Global Cues

As of early morning, GIFT Nifty futures indicated a slight dip, signaling a subdued start for Indian equities. This cautious sentiment comes against a backdrop of mixed global market performance. Asia-Pacific markets opened lower, with Japan's Nikkei 225 seeing a notable decline. In contrast, US indices like the S&P 500 and Nasdaq Composite closed marginally higher overnight, while the Dow Jones Industrial Average saw a slight fall.

Domestically, the economic landscape presents a strong picture, with the Indian economy reporting an impressive 8 per cent GDP growth rate for the September 2025 quarter (Q2FY26). Furthermore, retail inflation remains at a record low of 0.25 per cent, providing the RBI with potential flexibility in its policy decisions.

RBI Monetary Policy Anticipation

The Reserve Bank of India's upcoming monetary policy decision is the central focus for the Indian stock market. Investors will be closely scrutinizing the repo rate announcement for any indications of interest rate trajectory, which can significantly influence borrowing costs, corporate investments, and consumer spending.

Rate-Sensitive Sectors in Spotlight

Given the anticipation of the RBI's policy, sectors highly sensitive to interest rate changes are under particular investor scrutiny. These include:

• Banks and Financial Services: These institutions are directly impacted by lending rates and credit demand.
• Automobile Sector: Car and home loan interest rates influence purchasing decisions.
• Real Estate: Property market activity is heavily tied to mortgage rates and developer financing costs.

Key Stock Movements and Corporate News

Several individual stocks are also expected to see significant action today due to specific corporate developments:

• Adani Enterprises (AEL): Reports suggest that Life Insurance Corporation of India (LIC) and GQG Partners may participate in its ongoing ₹24,930-crore rights issue, potentially investing around ₹1,000 crore each.
• IndiGo: The airline's management held an urgent review meeting with the Civil Aviation Minister following large-scale flight cancellations attributed to new pilot rest regulations. IndiGo indicated cancellations might persist for a few more days.
• Tata Power: The company confirmed the temporary suspension of work at its Mundra units continues, with an anticipated resumption by December 31, 2025.
• IndusInd Bank: The private lender has officially denied media reports suggesting it was in talks to bring in a strategic partner.
• ITC Hotels: British American Tobacco (BAT) is exploring the sale of its stake in ITC Hotels, potentially offloading between 7 per cent and its entire 15.3 per cent holding.
• YES Bank: Life Insurance Corporation of India (LIC) has entered into a strategic bancassurance partnership with YES Bank, enabling YES Bank customers access to LIC's insurance products.
• Samvardhana Motherson International Ltd (SAMIL): The board has approved acquiring the remaining 10 per cent stake in Motherson Lumen Systems South Africa Pty Ltd, making it an indirect wholly-owned subsidiary.
• Deepak Nitrite: Its material wholly-owned subsidiary, Deepak Chem Tech Limited, has started manufacturing operations at its new Nitric Acid Plant in Nandesari, Gujarat.
• Brookfield India Real Estate Trust (Brookfield India REIT): The REIT has launched a ₹3,500-crore qualified institutional placement (QIP) at a price slightly below its current market value.
• Diamond Power Infrastructure: The company received a Letter of Intent (LoI) from Adani Green Energy for supplying solar cables worth ₹748 crore for projects in Khavda and Rajasthan.
• RailTel: An order worth ₹63 crore has been received from the Central Public Works Department (CPWD) for ICT network infrastructure.

Impact

Today's trading session will likely be influenced by the RBI's policy outlook and specific corporate news. Rate-sensitive stocks could see volatility, while companies announcing significant deals or operational updates may experience individual stock price movements. Investors will be keen to gauge the market's reaction to these developments.

• Impact Rating: 8/10

Difficult Terms Explained

• GIFT Nifty: A proxy for India's Nifty 50 index, trading on the GIFT City International Financial Services Centre, indicating offshore market sentiment.
• Repo Rate: The rate at which the central bank (RBI) lends money to commercial banks. A lower repo rate generally makes borrowing cheaper.
• GDP (Gross Domestic Product): The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.
• Retail Inflation: The rate at which the prices of goods and services used by households increase.
• Monetary Policy Committee (MPC): A committee constituted by the RBI to decide on the policy repo rate required to maintain inflation targets while keeping in mind the objective of sustainable growth.
• Rights Issue: An offer by a company to its existing shareholders to purchase additional shares, usually at a discount.
• QIP (Qualified Institutional Placement): A method for listed companies to raise capital by issuing shares or convertible securities to qualified institutional buyers.
• Bancassurance: A partnership between a bank and an insurance company where the bank sells insurance products to its customers.
• Letter of Intent (LoI): A document outlining a preliminary agreement between parties, indicating a mutual intent to proceed with a transaction or project.