Sensex, Nifty snap 4-day losing streak ahead of MPC outcome; will RBI cut rates?
Among Sensex constituents, Asian Paints hit a fresh 52-week high of Rs 2,985.50 in today’s session.
- Dec 4, 2025,
- Updated Dec 4, 2025 3:58 PM IST
Domestic equity benchmarks Sensex and Nifty snapped their four-day losing run on Thursday to close higher as the IT index surged. Investors' attention has now shifted to RBI Governor Sanjay Malhotra and the Monetary Policy Committee’s December 5 meeting, where markets are watching for cues on a possible rate cut.
At the close, the Sensex gained 158.51 points, or 0.19 per cent, to finish at 85,265.32. The Nifty50 added 47.75 points, or 0.18 per cent, to end at 26,033.75.
TCS topped Sensex gainers, advancing 1.48 per cent to Rs 3,227. Bharat Electronics followed with a 1.27 per cent rise. Other major contributors included Tech Mahindra, Infosys, HCL Technologies and Bharti Airtel, which gained 1.26 per cent, 0.93 per cent, 0.89 per cent and 0.76 per cent, respectively.
Five stocks, namely, Infosys, TCS, Bharti Airtel, ITC and Axis Bank, contributed heavily to the Sensex’s rise.
Among Sensex constituents, Asian Paints hit a fresh 52-week high of Rs 2,985.50 in today’s session.
In the sectoral indices, the BSE IT index climbed 1.31 per cent to close at 37,127.24, while the BSE FMCG index advanced 0.38 per cent to end the session at 20,251.87.
Overall, of the 4,302 actively traded BSE stocks, 1,817 closed higher, 2,302 declined, and 183 remained unchanged. During the session, 80 stocks touched their 52-week highs, while 261 fell to 52-week lows. Meanwhile, 159 scrips hit their upper circuits, and 212 were locked in lower circuits.
Aditya Pagaria, Senior Fixed Income Fund Manager at Axis Asset Management Company, said the outcome is a 50-50 situation on what the RBI may decide. Pagaria noted that the commentary will matter more than the rate action itself. If the RBI delivers a rate cut but pairs it with a hawkish tone, it could unsettle markets, much like the June policy, where a similar combination triggered volatility.
Vinod Nair, Head of Research at Geojit Investments Limited, said the domestic market ended flat, weighed by mixed global cues and investor caution ahead of the RBI policy announcement.
“Early value-driven gains were restrained by a record-low rupee and persistent FII outflows. However, lowered expectations of an RBI rate cut supported a mild currency rebound, helping indices stabilise towards the close. IT stocks outperformed, buoyed by renewed optimism around potential Fed rate cuts and favourable currency tailwinds, which strengthened investor appetite for the sector," Nair said. JM Financial said that the RBI faces a challenging balancing act as it works to support economic growth while safeguarding price stability. “Markets are divided on the RBI’s monetary policy expectation in December, specifically after the robust GDP print that followed the series low inflation. In addition to being forward looking, the RBI’s policy decision should also ensure an effective transmission in yields,” it said.
“We expect RBI to raise its growth projection by at least 20bps to 7% and lower its inflation forecast by 40bps to 2.2% in FY26. The currency has depreciated sharply in recent days; however, currency management does not come within the ambit of the MPC, hence the policy decision will not be aimed in this direction. We believe that the markets lack direction and the need of the hour will be effective communication by the regulator,” JM Financial said.
Domestic equity benchmarks Sensex and Nifty snapped their four-day losing run on Thursday to close higher as the IT index surged. Investors' attention has now shifted to RBI Governor Sanjay Malhotra and the Monetary Policy Committee’s December 5 meeting, where markets are watching for cues on a possible rate cut.
At the close, the Sensex gained 158.51 points, or 0.19 per cent, to finish at 85,265.32. The Nifty50 added 47.75 points, or 0.18 per cent, to end at 26,033.75.
TCS topped Sensex gainers, advancing 1.48 per cent to Rs 3,227. Bharat Electronics followed with a 1.27 per cent rise. Other major contributors included Tech Mahindra, Infosys, HCL Technologies and Bharti Airtel, which gained 1.26 per cent, 0.93 per cent, 0.89 per cent and 0.76 per cent, respectively.
Five stocks, namely, Infosys, TCS, Bharti Airtel, ITC and Axis Bank, contributed heavily to the Sensex’s rise.
Among Sensex constituents, Asian Paints hit a fresh 52-week high of Rs 2,985.50 in today’s session.
In the sectoral indices, the BSE IT index climbed 1.31 per cent to close at 37,127.24, while the BSE FMCG index advanced 0.38 per cent to end the session at 20,251.87.
Overall, of the 4,302 actively traded BSE stocks, 1,817 closed higher, 2,302 declined, and 183 remained unchanged. During the session, 80 stocks touched their 52-week highs, while 261 fell to 52-week lows. Meanwhile, 159 scrips hit their upper circuits, and 212 were locked in lower circuits.
Aditya Pagaria, Senior Fixed Income Fund Manager at Axis Asset Management Company, said the outcome is a 50-50 situation on what the RBI may decide. Pagaria noted that the commentary will matter more than the rate action itself. If the RBI delivers a rate cut but pairs it with a hawkish tone, it could unsettle markets, much like the June policy, where a similar combination triggered volatility.
Vinod Nair, Head of Research at Geojit Investments Limited, said the domestic market ended flat, weighed by mixed global cues and investor caution ahead of the RBI policy announcement.
“Early value-driven gains were restrained by a record-low rupee and persistent FII outflows. However, lowered expectations of an RBI rate cut supported a mild currency rebound, helping indices stabilise towards the close. IT stocks outperformed, buoyed by renewed optimism around potential Fed rate cuts and favourable currency tailwinds, which strengthened investor appetite for the sector," Nair said. JM Financial said that the RBI faces a challenging balancing act as it works to support economic growth while safeguarding price stability. “Markets are divided on the RBI’s monetary policy expectation in December, specifically after the robust GDP print that followed the series low inflation. In addition to being forward looking, the RBI’s policy decision should also ensure an effective transmission in yields,” it said.
“We expect RBI to raise its growth projection by at least 20bps to 7% and lower its inflation forecast by 40bps to 2.2% in FY26. The currency has depreciated sharply in recent days; however, currency management does not come within the ambit of the MPC, hence the policy decision will not be aimed in this direction. We believe that the markets lack direction and the need of the hour will be effective communication by the regulator,” JM Financial said.