Published on: 05 Dec, 2025 03:27

Markets brace for RBI rate decision, eyeing potential 25 bps cut amid volatility.

  • RBI in Focus: All eyes on MPC decision; 25 bps rate cut widely anticipated.

  • Flat Start Hinted: Gift Nifty suggests muted open for Nifty 50.

  • Sectors to Watch: Banking, financials, auto & realty in spotlight pre-RBI.

  • Brokerage Buys: Fresh calls highlight IT, manufacturing & exchanges (e.g., BSE, LTTS).

  • Global Cues: Asian rally snaps; RBI outlook & trade tensions key for intraday moves.

Introduction

Indian equity markets are poised for a volatile session on December 05, 2025, with all eyes on the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) decision, where a 25 basis point rate cut to 5.25% is widely anticipated amid economic slowdown concerns and global cues. Overnight, US futures edged slightly higher following a 0.1% rise in the S&P 500, while Asian markets snapped a three-day rally with Japan leading the decline. The Gift Nifty traded around 26,181, signaling a flat to muted open for the Nifty 50, with a discount of nearly 5 points from the previous close. Pre-market indicators point to consolidation with a positive bias, supported by IT sector strength and fresh buying in heavyweights, snapping a four-day losing streak yesterday.

Key themes today include banking and financials in focus ahead of the RBI announcement, with potential boosts for rate-sensitive sectors like auto and realty. A total of around 20 fresh recommendations were aggregated from credible sources, emphasizing buy calls in IT, manufacturing, and exchanges. Standout picks include L&T Technology Services upgraded to Buy amid bullish technicals, BSE initiated with a Buy rating by B&K Securities targeting ₹3,303, and intraday buys like Usha Martin and Coforge from Vaishali Parekh. Investors should monitor RBI's growth outlook and global trade tensions for intraday shifts.

Section 1: Index Outlook

Major indices are expected to trade with heightened volatility due to the RBI policy outcome, with near-term consolidation likely. The Nifty 50 faces resistance at 26,100, but holding above 25,900 support could drive it toward 26,300. Sensex may remain range-bound around 85,000-85,500, influenced by IT outperformers and banking cues. Bank Nifty shows a Doji pattern, suggesting indecision but potential upside beyond 59,500 if rates ease. Overall, a bullish tilt persists if global sentiment holds, driven by strong IT earnings and anticipated monetary easing.

Index Recommendation Target/Range Key Driver Source
Nifty 50 Bullish 26,100-26,300 Positive bias post-consolidation; RBI rate cut hopes Goodreturns
Sensex Neutral-Volatile 85,000-85,500 Global cues and policy volatility Livemint
Bank Nifty Hold with Upside Bias Above 59,500 Rate-sensitive response to RBI; Doji signals indecision Moneycontrol

 


Section 2: Sector-Wise Stock Picks

Fresh analyst calls today emphasize selective buying in undervalued stocks amid policy uncertainty. IT and tech lead with strong earnings drivers, while banking awaits RBI clarity. Manufacturing and exchanges see upgrades on growth prospects. Below are categorized picks, with targets indicating upside from yesterday's close where available.

IT & Tech

  • L&T Technology Services (LTTS.NS) – Buy, Target: ₹4,900 (Upside ~5%), Rationale: Bullish short-term outlook after 3.8% rise; holding above 20-day EMA signals strength in engineering services amid global demand. Source: The Hindu Business Line.
  • Coforge (COFORGE.NS) – Buy (Intraday), Target: ₹8,200 (Upside ~4%), Rationale: Technical breakout with positive momentum; recommended for quick gains pre-RBI. Source: Livemint (Vaishali Parekh).
  • Newgen Software (NEWGEN.NS) – Buy (Intraday), Target: ₹1,250 (Upside ~6%), Rationale: Strong volume support and sector tailwinds; ideal for day trading amid IT rally. Source: Livemint (Vaishali Parekh).

Banking & Financials

  • BSE (BSE.NS) – Buy, Target: ₹3,303 (Upside ~15%), Rationale: Positive on Indian exchanges; valued at 40x FY28E core earnings due to volume growth and regulatory tailwinds. Source: Business Standard (B&K Securities).
  • IndusInd Bank (INDUSINDBK.NS) – Watch/Hold, Target: N/A, Rationale: Stocks to watch amid RBI policy; potential upside if rates cut, but monitor asset quality. Source: Business Standard.

Manufacturing & Industrials

  • Usha Martin (USHAMART.NS) – Buy (Intraday), Target: ₹420 (Upside ~5%), Rationale: Amid Putin's India visit boosting infra ties; strong technicals with support at ₹400-405. Source: Livemint (Vaishali Parekh).
  • Samvardhana Motherson (SAMVARHANA.NS) – Watch, Target: N/A, Rationale: Auto sector focus pre-RBI; potential beneficiary of rate cuts on consumer demand. Source: Business Standard.

Other Sectors (Aviation, Power, etc.)

  • IndiGo (INDIGO.NS) – Watch, Target: N/A, Rationale: Aviation in spotlight with fuel costs and demand; monitor for policy-linked moves. Source: Business Standard.
  • Tata Power (TATAPOWER.NS) – Watch, Target: N/A, Rationale: Renewable energy push; stocks to watch for infra-related announcements. Source: Business Standard.
  • ITC Hotels (ITChotels.NS) – Watch, Target: N/A, Rationale: Hospitality sector eyeing festive boost; demerger implications. Source: Business Standard.
Sector Avg. Target Upside (%) Top Picks Count
IT & Tech 5% 3
Banking & Financials 15% 2
Manufacturing 5% 2

 



Section 3: Global & Thematic Insights

Global brokerages remain cautiously optimistic on India, with Macquarie and others seeing value in midcaps despite economic headwinds. Thematic calls highlight positive views on stock exchanges from B&K Securities, driven by trading volume surges. From BSE announcements, corporate updates include Adani's rights issue and Ola's site visits, implying infra and EV themes. Cross-border insights suggest silver and gold as hedges amid US PCE data, with silver potentially breaking $60 for further rallies. Regulatory nuggets from BSE/NSE point to no major disruptions, supporting stable trading.

Conclusion & Disclaimer

Overall market sentiment leans bullish with a neutral undertone, contingent on RBI's rate cut and growth commentary. Investors should watch banking stocks and IT for breakout opportunities. Actionable takeaway: Focus on L&T Technology Services and BSE for potential post-policy gains.

This is aggregated data for informational purposes; consult a financial advisor. Not investment advice. Pre-market snapshot – updates may evolve post-8:30 AM IST.

Sources & Citations


Top Performing Mutual Funds