Nifty snaps muted streak with broad rally after RBI cuts rates by 25 bps
Welcome to Aftermarket Report, a newsletter where we do a quick daily wrap-up of what happened in the markets, both in India and globally.
Market Overview
Nifty 50 opened on a cautious footing as markets waited for the Reserve Bank of India’s policy decision. Early trade stayed muted with little directional strength.
Once the RBI announced a 25 basis-point repo rate cut to 5.25%, sentiment shifted sharply. Rate-sensitive sectors such as banking, finance, autos, and real estate drove a breakout from the morning’s narrow range.
Through the afternoon, the rebound broadened. IT, metals, and autos added to the upmove as risk appetite strengthened. Volatility eased toward the close, and Nifty settled at 26,186.45, up 152.7 points (0.59%), marking a clear turnaround from the previous few sessions.
Overall, it was a broad-based, liquidity-driven rally, a notable shift from the subdued start. Of the 3,192 stocks tarded on NSE, 1,331 advanced, 1769 declined, and 92 remained unchanged.
Gains were fairly widespread. Nifty PSU Bank led the day with a 1.51% rise, followed by Nifty IT (0.90%), Auto (0.74%), and Metals (0.67%). Media was among the few sectors that ended weaker.
Here’s the trend of FII-DII activity from the last 5 days:
Change in OI for the day
The following is the change in OI for Nifty contracts expiring on 9th December:
The highest Call OI is at 26,500, followed by 26,400 and 26,200, indicating a strong resistance zone between 26,200 and 26,500.
On the Put side, the highest Put OI is at 25,900, followed by 26,100 and 26,000, suggesting a support band around the 25,900–26,100 levels.
Note: OI is subject to multiple interpretations, but generally, an increase in Call OI indicates resistance in a falling market, and an increase in Put OI indicates support in a rising market.
Source: Sensibull
Tijori is an investment research platform, and they have constructed niche indices for various themes and sub-sectors. They help you understand the market performance of narrow slices of the market. You can also track the Promoter buying and other interesting stuff, like Capex activity by the companies in the Tijori App’s idea dashboard
What’s happening in India
RBI plans to inject liquidity in December through open market purchases of government securities worth ₹1 lakh crore and a $5 billion 3-year USD/INR buy-sell swap, citing expected tightness ahead of advance tax outflows on December 15. Dive deeper
RBI cut the repo rate by 25 bps to 5.25% (125 bps total easing in 2025) and announced INR 1 trillion of bond purchases plus a $5 billion FX swap to add liquidity and aid transmission. Dive deeper
Sebi has barred stock market influencer Avadhut Sathe and his entity from accessing the securities market, alleging unregistered advisory and research activities presented as training. Dive deeper
The rupee weakened past 90 per dollar after the RBI cut the repo rate by 25 bps to 5.25% and signalled limited scope for further easing, leaning instead on liquidity measures. Dive deeper
India’s 10-year G-Sec yield fell below 6.5% after the RBI cut the repo rate by 25 bps to 5.25% and signalled a pause on further cuts, with support shifting toward liquidity measures. Dive deeper
Modi and Putin held summit talks in New Delhi, focusing on expanding trade and cooperation across defence, energy and new areas such as technology, aviation, space and AI. Dive deeper
ONGC Videsh is set to pay into Sakhalin-1’s abandonment fund in rubles, using around $800 million of frozen dividends from Indian state-run firms in Russian energy assets, to retain its 20% stake. Dive deeper
Indian equities strengthened after the RBI cut policy rates and signalled a supportive macro backdrop by upgrading growth expectations and lowering the inflation outlook, alongside steps to improve system liquidity. Dive deeper
DGCA approved IndiGo’s exemption from night-duty limits for pilots as the airline faced major disruptions, including over 400 flight cancellations. IndiGo blamed the turmoil on planning gaps in implementing pilot duty and rest norms. Dive deeper
What’s happening globally
Oil prices stayed supported by geopolitical risk, with focus on possible US action on Venezuela and continued uncertainty around the Ukraine war. Expectations of US rate cuts also aided sentiment by improving the demand outlook. Dive deeper
Gold prices moved higher as softer US labour-market signals reinforced expectations of a near-term Federal Reserve rate cut, keeping investors positioned for easing. Dive deeper
FAO’s global food price index fell for a third straight month in November, led by sharp declines in sugar and broad-based weakness in dairy, vegetable oils and meat on ample supply conditions. Dive deeper
US PCE inflation is expected to remain firm, with monthly gains in both headline and core measures matching recent readings. On a year-on-year basis, headline inflation is seen ticking up while core inflation holds steady, reinforcing the “higher for longer” debate on the Fed path. Dive deeper
Eurozone Q3 2025 growth was revised slightly higher, led by a rebound in investment and firmer government spending, while inventories also added to output. Consumption cooled and trade was a drag as imports outpaced exports; Spain and France led growth, while Germany was flat. Dive deeper
Tesla introduced a lower-priced Model 3 variant in Europe to lift demand and defend market share as cheaper EV offerings from European and Chinese rivals intensify competition. Dive deeper
China’s AI GPU maker Moore Threads is moving ahead with a roughly $1.1 billion Shanghai STAR Market IPO, spotlighting investor appetite for domestic chip champions amid tighter US tech curbs. Dive deeper
BlackRock’s iShares Bitcoin Trust (IBIT) saw its longest stretch of withdrawals, with more than $2.7 billion pulled over about five weeks, according to Bloomberg-compiled data. The outflow run signals cooling demand for bitcoin ETF exposure
after a strong earlier wave of inflows. Dive deeper
Management chatter
In this section, we highlight interesting comments made by the management of major companies and policymakers from the Indian and Global Economies.
Prashant Biyani, Vice President – Institutional Equity Research, Elara Securities, on ITC Hotels block deal overhang and upside drivers:
“Post this, whatever small overhang existed on BAT’s supply will disappear. With peak holiday season underway and strong visibility for next year, ITC Hotels should see upside from here.”
“It would be closer to 21-22 times. With strong earnings visibility and a robust industry upcycle, there is still scope for valuation expansion.”
“The occupancy dip seen in H1 was due to travel restrictions, not a fall in organic demand. Both leisure and business travel remain intact. As long as mobility remains unrestricted, occupancy should hold up.” - Link
Sanjay Shah, CMD, Prudent Corporate, on SIP inflows supporting markets amid FII selling:
“Even with modest market returns, rupee-cost averaging has ensured 7–10% gains for SIP investors, keeping confidence intact.”
“This will meaningfully boost retail participation over the next year.”
“This is a thin-margin, high-volume business, but the ratio is well accepted and should remain stable unless regulatory changes alter TER structures.” - Link
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Calendars
In the coming days, we have the following significant events and corporate actions:
That’s it from us for today. We’d love to hear your feedback in the comments, and feel free to share this with your friends to spread the word!
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