Indian Developments
Indian equity markets ended the week on a positive but cautious note, supported by the Reserve Bank of India’s 25 bps repo rate cut to 5.25% and optimism around rate-sensitive sectors. Inflation forecast for FY26 revised sharply lower to 2%, while GDP growth forecast raised to 7.3%.
Broader markets, vis-à-vis the previous week, declined as Nifty 50, Nifty Midcap 150, and Nifty Small Cap 250 lost 0.11%, 0.95%, and 1.64%, respectively.
The Indian Rupee recovered modestly to ?89.9 against the U.S. dollar, after hitting an all-time low of ?90.56/USD earlier in the week with persistent FPI selling, aided by RBI’s policy stance and profit booking in USD positions.
FIIs continued selling aggressively: net outflows of ?8,020 crore month-to-date, while DIIs absorbed selling with ?11,935 crore net inflows in December so far.
Mega IPO wave: Nearly 30,000 crore worth of issues lined up in December. Brent crude slipped slightly to around $63.17 per barrel, reflecting weak global demand.
Sectoral Developments
Market performances were mixed this week. IT led gains, up ~3.36%, supported by global tech optimism and currency tailwinds. Metals and auto showed resilience, while Pharma traded flat.
Banking & Financials rallied post-RBI rate cut, with NBFCs and private banks seeing strong traction, but ended with mildly negative returns compared to the previous week after a brief recovery. Defence stocks rose ~1% amid geopolitical developments and government procurement optimism.
Nifty Media (-1.76%) and Consumer Durables (-3.10%) lagged on weak demand signals; FMCG remained subdued. Nifty Energy declined post the India–Russia Annual Summit (Dec 4–5) introduced short-term uncertainty around energy trade agreements and sanctions risk.
Global Developments
U.S. indices posted weekly gains on dovish Fed expectations: Dow +3.2%, S&P 500 +3.7%, Nasdaq +4.9%.
Asian markets were mixed: Hang Seng firmed on stimulus hopes, while Nikkei consolidated.
European indices stayed under pressure, with FTSE 100 down 0.3% and DAX losing 0.5%, amid weak PMI data and growth concerns.
Bond yields eased globally as markets priced in a high probability (~89%) of a Fed rate cut at the December FOMC meeting.
Other Markets:
Source: www.nseindices.com; MCX Gold Prices; Economic times, Bloomberg.
Data for week ended on December 5, 2025.
Disclaimers:
The views and investment tips expressed by experts are their own and are meant for informational purposes only and should not be construed as investment advice. Investors should check with their financial advisors before taking any investment decisions.
The word ‘more’ does not imply more returns or assurance of scheme performance.it refers to the additional value provided by the joint venture, as compared to Baroda AMC and BNP Paribas AMC individually.
In the preparation of the material contained in this document, Baroda BNP Paribas Asset Management India Ltd. (“AMC”) (formerly BNP Paribas Asset Management India Private Limited) has used information that is publicly available, including information developed in-house. The AMC, however, does not warrant the accuracy, reasonableness and/or completeness of any information. This document may contain statements/opinions/ recommendations, which contain words, or phrases such as “expect”, “believe” and similar expressions or variations of such expressions that are “forward looking statements”. Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risks, general economic and political conditions in India and other countries globally, which have an impact on our investments, the monetary and interest policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices, etc. The AMC (including its affiliates), Baroda BNP Paribas Mutual Fund (“Mutual Fund”), its sponsor / trustee and any of its officers, directors, personnel and employees, shall not be liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this document in any manner. The recipient alone shall be fully responsible / liable for any decision taken based on this document. All figures and other data given in this document are dated and may or may not be relevant at a future date. Prospective investors are therefore advised to consult their own legal, tax and financial advisors to determine possible tax, legal and other financial implication or consequences of subscribing to the units of the schemes of Baroda BNP Paribas Mutual Fund.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
© Copyright Baroda BNP Paribas Mutual Fund
