Overview
- The Reserve Bank of India reduced the repo rate by 25 bps to 5.25% and outlined about Rs 1.45 lakh crore of liquidity via bond purchases and dollar–rupee swaps, while trimming its inflation forecast to 2% and lifting GDP growth to 7.3%.
- Benchmarks jumped on Friday after the policy move (Sensex +447 to 85,712; Nifty +153 to 26,186) but the week finished largely flat after earlier volatility.
- Near-term direction hinges on the US Federal Reserve’s meeting on Dec. 9–10 and India’s CPI release on Dec. 12, with traders also watching US labor data, the dollar index and Treasury yields.
- The rupee breached 90 to the dollar during the week and closed at 89.95 on Friday, as foreign investors continued net selling even as domestic institutions provided support.
- Analysts flag Nifty support at 25,900–25,700 and favor selective buying in large caps and rate-sensitive sectors, with primary market focus on Meesho’s listing and the ICICI Prudential AMC IPO opening on Dec. 12.