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Below the Quote on Market 05th December 2025 by Vinod Nair, Head of Research, Geojit Investments Ltd

"Indian markets have enthusiastically responded to the RBI's unexpected 25 bps rate cut, a move that seemed unlikely given the strong Q2 GDP data. This surprise, combined with sharply lower inflation forecasts and supportive liquidity measures, has triggered a risk-on sentiment across equities. Rate-sensitive sectors such as autos, real estate, and NBFCs are leading the gains due to reduction in cost. While private banks have also gained on expectation of treasury profits, concerns around net interest margins (NIM) have limited their upside. Overall, the short-term outlook remains cautiously positive, with a focus on strong corporate earnings in December. However, near-term risks such as a widening current account deficit and global trade tensions continue to pose challenges. The stance of the US Fed on rate cuts will be crucial for maintaining the domestic trend for the month."

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