December 1st to December 5th 2025

 

Nifty started the week on a cautious footing, with sustained selling pressure keeping sentiment subdued. But by week’s end, the bulls delivered a spectacular comeback, sending the benchmark roaring like a lion.

 

Biggest Positive Catalyst: Dalal Street cheered the RBI’s early Christmas gift — a widely expected 25 bps rate cut, bringing the repo rate down to 5.25%. The policy tone boosted confidence across the Street.

 

 

Nifty (-0.06%, 26186)

Sensex (+0.01%, 85712)

Bank Nifty (+0.04%, 59777)

 

Before we get into detail, the good news: Well, what began as Buy-the-Dip action now appears to be evolving into Momentum Buying. If this shift accelerates, it could quickly turn into a Buying Stampede — paving the way for a full-fledged Raging Bull market.

 

With sentiment improving and liquidity likely to stay supportive, Nifty looks poised to break into uncharted territory as we head toward 2027.

 

The 2-Biggest Positive Catalysts: 

 

1) Positioning has begun ahead of a December US Fed rate cut. Futures positioning indicates traders now see a high probability of easing when the Fed meets on December 9th and 10th —adding fuel to the risk-on sentiment.

 

2) RBI’s 25 bps rate cut to 5.25% is broadly positive for equities as it lowers borrowing costs, improves liquidity, and boosts economic sentiment. Historically, rate cuts tend to re-rate growth sectors and revive consumption cycles.

 

Bottom-line: We believe, Nifty bulls are likely to dominate in the near term — and now the key question is: Will the FPI comeback strongly?

 

With the macro backdrop turning firmly supportive, the mood on Dalal Street is upbeat — and the bulls now have their sights set on the next big psychological milestone: 27,000 on the Nifty.

 

Long live the bull.

 

Instruments  LTP  Weekly % Change

Nifty  26186 (-0.06%)

Sensex  85712 +0.05%

Bank Nifty  59777 +0.04%

Nifty Midcap  16630 (-0.06%)

India VIX  10.31 (-11.21%)

 

Dow 47955 (+0.5%)

Nasdaq 25692 +1.01%

Bovespa 157369 (-1.41%)

 

Crude Oil 60.08 +2.58%

Gold 4216 (-0.09%)

Silver 58.41 +3.52%

USD/INR 90.06 +0.79%

 

 

1) Nifty (-0.06%) swung sharply through the session, but the key positive is that it closed firmly above the 26,000 mark — holding just below its recent all-time high of 26,325.80.

 

Nifty is also way above its 21 DMA (25978), 50 DMA (25633), 100 DMA (25258) and Nifty’s 200 DMA at 24647 mark.

 

2) Bank Nifty (+0.04%) was well bid towards the close, and the positive takeaway was that Bank Nifty managed ring its 5-straight week winning streak. Bank Nifty’s new all-time-high now is at 60114.30 mark. 

 

Bank Nifty’s 200-DMA is at 54977 mark.

 

3) Nifty Private Bank (+0.25%) inched higher while Nifty PSU Bank (-1.56%) index drifted lower amidst profit booking. 

 

PSU banks remained sluggish after government clarified that it has no plans to raise foreign direct investment (FDI) limit in these lenders from 20 percent to 49 percent. 

 

4) The broader markets traded, especially Nifty Mid-cap 50 index ended slightly higher, up 0.06% while the Nifty Small-cap index wavered and tumbled 1.8% lower.

 

Nifty IT (+3.47%)

Nifty Auto (+0.59%)

Nifty Metal (+0.46%)

 

Nifty Media (-2.30%)

Nifty Energy (-1.62%)

Nifty Realty (-1.11%) 

Nifty Infra (-1.17%)

Nifty FMCG  (-0.71%)

Nifty Pharma (-0.22%)

 

 

1) Indus Towers (+3.65%) gains as is seen as major as beneficiary on reports that the government is awaiting a formal request from Vodafone Idea before going forward with any relief measures, Union Telecom Minister Jyotiraditya Scindia.

 

Vodafone Idea (+8.43%, 10.80) too jumped out of the roof after reports suggest Telecom Minister Jyotiraditya Scindia indicated that the Centre may finalise the company’s AGR relief recommendations soon.

 

2) Reliance Begins Work on Draft Prospectus for Jio Platforms Listing!

 

Reliance Industries (-1.77%) edged lower even after reportedly begun work on the initial draft prospectus for the long-awaited Jio Platforms IPO, marking a key step toward what could become one of India’s largest-ever listings.

 

3) Petronet LNG (+1.09%) jumped after the company signed a long-term agreement with ONGC to develop and operate ethane import and handling infrastructure at its Dahej terminal — a move that strengthens its positioning in India’s evolving gas value chain.

 

4) Interglobal Aviation (-9%) plunged after IndiGo cancelled over 750 flights. 

 

The root cause: a combination of factors — primarily a crew shortage triggered by new regulatory norms on flight-duty time (FDTL), which came into effect recently. 

 

As per latest PTI report, IndiGo says operations will be restored by Feb 10, 2026.

 

5) Nifty IT index (+3.47%) was the biggest outperformer and ended firmly in positive territory despite a struggling broader market.

 

The sector was showing resilience on the back of two key catalysts:

 

a) Stronger-than-expected Q2 performance: Multiple IT majors posted robust earnings with solid deal wins, margin improvement, and operational efficiency — keeping sentiment buoyant.

 

b) Rupee hits 90/$: The steep depreciation of the rupee is a direct earnings tailwind for export-heavy IT companies, as dollar revenues translate into higher rupee realizations.

 

Interestingly, Nifty IT has been a big outperformer, surging to a 4-month high after a stellar 9% rally in just one month.

 

Meanwhile, TCS hit a 3-month high, gaining around 3.21% to ₹3,238 amid reports it may partner with OpenAI.

 

6) JSW Steel (+0.37%) was in spotlight after the firm agreed with Japan’s JFE Steel to form a 50:50 joint venture for the steel business of Bhushan Power & Steel Ltd (BPSL), valuing the deal at ₹15,750 crore.

 

Under the structure, BPSL’s steel business—currently a JSW subsidiary—will be transferred to the new JV, JSW Kalinga, through a slump sale worth ₹24,483 crore. JFE will invest ₹15,750 crore in two tranches to acquire its 50% stake.

 

The move strengthens the long-standing partnership between JSW and JFE, dating back to 2009, and is aimed at accelerating scale, technology integration, and long-term growth for both steelmakers.

 

7) Indian Energy Exchange (IEX) (+4.32%) gained as the firm has achieved monthly electricity traded volume (excluding TRAS) of 11,409 MU in November’25, marking an 17.7% increase on year-on-year basis.

 

8) Angel One slipped 2.38% after reporting a 16.6% YoY drop in gross client additions — down to 0.50 million in November 2025 from 0.60 million a year earlier. 

 

9) Bajaj Housing Finance (-.06%) dropped after a large block deal. The transaction was linked to the promoter, Bajaj Finance, likely selling about 2% stake to meet minimum public shareholding norms. Bajaj Finance, which currently owns 88.70%, plans to sell up to 16.66 crore shares between 2 December 2025 and 28 February 2026.

 

WIPRO (+4.16%)

HCL TECH (+3.62%)

INFOSYS (+3.60%)

TECH MAH (+3.53%)

ASIAN PAINTS  (+3.27%)

 

INDIGO (-9%)

MAX HEALTHCARE (-5.62%)

HUL (-5.19%)

ETERNAL (-2.57%)

TITAN  (-2.42%)

 

 

The trading theme at Dalal Street is expected to revolve around the Indian rupee, which has slipped past 90 per USD and is now hovering near record lows after the RBI’s December rate cut.

 

The INR is down nearly 5% this year — the weakest in Asia — weighed by soft trade flows, persistent capital outflows, and steep US tariffs that have strained India’s export competitiveness and dragged the currency toward the 90-per-dollar zone.

 

# Well, the good news on sentiment front is that India VIX logged its steepest weekly drop in six months, falling from 11.62 (Nov 30) to 10.31. 

 

Notably, this pullback comes even as Nifty is aiming to hit fresh record highs — signalling reduced volatility expectations and growing trader confidence.

 

# New records highs for benchmark Nifty shall be the new normal on reports that India’s Q2 FY26 GDP surged 8.2%, powered by strong consumption and sectoral momentum.

 

 

1) Trade Deal Optimism: Rising hopes of progress on a potential U.S.–India trade agreement.

 

2) Rate cut from the Federal Reserve. (On Wednesday, December 10th 2025, the US Fed would announce its latest interest rate decision.) 

 

# Bottom-line: Nifty bulls are likely to be everywhere at Dalal Street —  so keep your list of bullish stocks ready before Santa arrives with momentum gifts.

 

# Long Story Short: Keep Your Nifty all-time high cap ready! Yipee!!

 

 

 

 

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