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Below the Quote on Weekly Market Outlook 05th Decmeber 2025 from Vinod Nair, Head of Research at Geojit Investments Limited 

"Indian equities began the week with profit booking after hitting record highs in the previous week. Early optimism driven by strong Q2 GDP print and robust auto sales was overshadowed by persistent FII outflows, sharp rupee depreciation, and uncertainty over trade negotiations. Sectoral trends were mixed- autos and IT outperformed, on festive demand and favorable currency tailwinds. While banking counters faced intermittent pressure due to regulatory changes and cautious positioning ahead of the RBI policy meeting. Global factors such as rising Japanese bond yields and expectations of BOJ tightening, added to volatility.

Sentiment reversed on Friday after the RBI surprised markets with a 25-bps rate cut, supported by lower inflation forecasts and liquidity measures. This dovish move triggered risk-on buying, lifting rate-sensitive sectors like autos, real estate, and NBFCs, while private banks gained on treasury profit hopes despite NIM concerns. Benchmarks ended the week on a strong recovery note.

Looking ahead, volatility may persist with a positive bias as investors digest RBI’s dovish action and track global triggers. The US Fed meeting and clarity on India–US trade talks will be key, while Q3 earnings optimism faces risks from rupee swings, widening CAD, and global trade tensions."

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