CHENNAI: Indian markets opened on a steady and mildly positive note on Friday (December 5) as investors positioned themselves ahead of the Reserve Bank of India’s policy outcome. The early tone was cautious, with both the Sensex and Nifty starting the session close to the flat line, reflecting a market that preferred to wait for clarity before taking stronger positions. Sentiment remained balanced in the first few minutes of trade, shaped by mixed global cues and the anticipation that the monetary policy decision could influence interest-rate-sensitive sectors.
As trading progressed, optimism gradually strengthened after the RBI announced a 25-basis-point cut in the repo rate while maintaining a neutral stance. At 10:50 AM, the BSE Sensex climbed 310 points to 85,579, while the NSE Nifty 50 advanced 99 points to 26,133.
The policy move acted as a catalyst, pulling benchmark indices higher and lifting market confidence. Banking, auto and realty stocks were among the first to respond, with investors expecting lower borrowing costs to support loan demand, consumption and housing activity. The easing in policy rates also improved liquidity expectations, helping financial stocks gain early traction.
The broader market showed a similar but measured improvement. Midcap and small-cap indices edged up as traders interpreted the fresh rate cut as a supportive signal for corporate borrowing and investment cycles. Despite the positive undertone, the early session still reflected a degree of restraint, as participants assessed how quickly banks might transmit the rate cut and how external factors, including currency movements, could shape the near-term outlook.
Overall, the opening trend on December 5 indicated a market buoyed by relief and renewed confidence after the policy announcement, yet mindful of macroeconomic uncertainties that continue to influence short-term sentiment.