Market Closing View for 5th Dec by Ponmudi R, CEO, Enrich Money

This RBI rate cut is not a response to stress it is a calculated vote of confidence in India’s growth engine. The combination of a 25 bps cut, Rs.1 lakh crore of OMO liquidity and a $5 billion USD/INR swap clearly signals that liquidity will remain ample and growth will stay protected. With inflation anchored near 2%, core pressures easing and bond yields softening, the cost of capital is now structurally supportive for both businesses and consumers.

Nifty 50 closed near 26,200, firmly holding above the 26,000 psychological mark. Strong support remains intact in the 26,000–26,100 band, which continues to act as the immediate demand base.

However, the index is still facing supply near the 26,250–26,300 resistance zone, where profit-booking is visible. A sustained closing above 26,300 is required to unlock the next upside leg towards 26,450–26,600.

Bank Nifty closed around the 59,700 zone, showing resilience after the policy announcement. Strong demand continues near the 59,300–59,000 support band, which is acting as a reliable base.

Upside momentum will remain limited until the index reclaims and sustains above 59,700. A breakout above this level can open the path towards 60,000–60,500, while a failure to hold 59,300 could trigger a corrective move towards 59,000–58,850.

Market sentiment remained cautiously positive, supported by the RBI’s rate cut, which strengthened the outlook for banking, real estate and consumption-led sectors through improved liquidity and easier credit conditions.

At the same time, global sentiment stayed weak as US and Asian markets traded lower, keeping overall risk appetite subdued. The rupee breaching the 90/USD mark exerted pressure on IT and other import-heavy sectors, while continued FPI outflows restricted broad-based participation.

Sectoral performance remained mixed financials gained traction on policy support, whereas IT and FMCG underperformed due to currency weakness and soft external cues. Overall, today’s setup reflected a domestic-policy-driven cushion offsetting global headwinds, resulting in a balanced but mildly constructive market environment.

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