Daily Finance Pulse India - 08 December 2025
Indian markets enter the week of 2025-12-08 on a cautiously bullish footing after the RBI’s rate cut lifted Sensex and Nifty to fresh highs, even as heavy FPI outflows and global Fed uncertainty cap risk appetite; stock market ahead for India: open; overall sentiment: neutral-to-bullish.
1/10
**Rates: RBI cut sparks equity rally, sets tone for week**
2025-12-05 · India’s BSE Sensex closed about 0.5% higher at 85,712 on Friday, December 5, its highest level in over a week, as traders cheered the Reserve Bank of India’s 25 bps repo rate cut and liquidity-boosting measures, with rate-sensitive financials and autos leading gains.[1]
Impact: The RBI’s first rate cut in six months supports growth-sensitive Indian sectors and underpins an overall positive bias for equities at the start of the new week.
2/10
**Flows: FPIs dump Indian stocks even as DIIs step in**
2025-12-07 · In the first week of December, foreign portfolio investors (FPIs) sold a net ₹11,820 crore in Indian equities, taking total 2025 outflows to about ₹1.55 lakh crore, while domestic institutional investors bought ₹19,783 crore, fully offsetting the foreign selling, according to NSDL data cited by Upstox.[2]
Impact: Persistent foreign selling keeps India’s valuation and currency risks in focus, but strong domestic buying is cushioning indices from a deeper correction.
3/10
**Indices: Sensex and Nifty end week flat despite RBI boost**
2025-12-07 · Indian benchmark indices Sensex and Nifty finished last week largely flat after an initial rally on the RBI’s rate cut, as profit-taking and caution ahead of key global events capped gains, according to PTI reports on domestic market performance.[4][6]
Impact: After a flat week, Indian equities face a consolidation phase where follow-through buying will depend on global cues and incoming macro data.
4/10
**Outlook: Fed decision seen as key driver for Indian markets**
2025-12-07 · Analysts say the US Federal Reserve’s upcoming interest rate decision will be the major factor dictating trends in Indian equities this week, alongside India’s own CPI data due December 12, as global risk sentiment and currency moves filter into domestic markets.[4][6]
Impact: Any dovish surprise from the Fed could extend India’s rate-cut rally, while a more hawkish tone may pressure emerging-market assets including Indian stocks and the rupee.
5/10
**Macro & sectors: Rupee stability and private banks seen outperforming**
2025-12-07 · Aditya Birla Sun Life AMC CIO Mahesh Patil told ET Now that the rupee is likely to stabilise and that private banks, consumption and auto stocks are positioned to outperform, helped by India’s solid growth backdrop and the RBI’s easing bias.[5]
Impact: If the rupee steadies, investors may rotate toward domestic cyclicals such as private banks and autos, which are expected to lead India’s next leg of gains.
6/10
**Market wrap: Rate-sensitive stocks lift Nifty above 26,150**
2025-12-07 · The Economic Times reported that the Sensex climbed about 447 points and the Nifty closed above 26,150 after the RBI’s repo rate cut, with financials, autos and IT leading sectoral gains, even as broader markets saw some profit-booking.[1][3]
Impact: Leadership from banks, autos and IT suggests investors are positioning for lower domestic and global rates, supporting earnings-sensitive large caps.
7/10
**Risk radar: FPI flows, Fed policy and CPI top watchlist**
2025-12-07 · Market strategists highlighted that Indian equities will watch three key drivers this week: the US Fed policy outcome, domestic CPI inflation data, and the trajectory of FPI flows after heavy year-to-date equity outflows, according to PTI commentary.[4][6]
Impact: Short-term volatility in Indian stocks could spike around the Fed meeting and CPI release, making risk management and stock selection more critical for traders.
8/10
**Global indices: US and Asian markets trade cautiously pre-Fed**
2025-12-07 · Global market reports indicated that major US and Asian indices ended last week mixed and subdued as investors stayed on the sidelines ahead of the US Federal Reserve’s December meeting, with rate-cut expectations for next week shaping risk-on versus risk-off positioning.[4][6]
Impact: Muted global risk appetite may limit near-term upside for Indian equities, but a confirmation of future Fed cuts could quickly revive foreign interest in emerging markets.
9/10
**Forex: Rupee pressured by FPI outflows but expected to stabilise**
2025-12-07 · Analysts cited by Upstox and ET Now noted that the rupee’s near-5% depreciation this year and ongoing FPI outflows have weighed on sentiment, but they expect the currency to stabilise as India’s macro data stay strong and central banks globally tilt toward easing.[2][5]
Impact: A stabilising rupee would ease imported inflation and could gradually improve foreign investor confidence in Indian assets.
10/10
**Commodities & crypto: Bonds, oil and digital assets watch Fed path**
2025-12-07 · Market coverage from Indian business dailies said the RBI’s cut has fuelled a rally in Indian government bonds even as the 10-year yield ended broadly steady, while global commentary highlighted that crude oil and cryptocurrencies are consolidating as traders await clearer signals on the Fed’s 2026 rate path and risk appetite.[3][6]
Impact: Lower-for-longer rate expectations support Indian bonds and risk assets like equities and crypto, but any surprise from the Fed could quickly trigger cross-asset volatility.