Stock market news: The Indian stock market rose on Friday following the Reserve Bank of India’s (RBI) decision to lower the policy repo rate by 25 basis points to 5.25%, with the outcome of the MPC acting as the primary driver for the market’s recovery.
By the end of today’s trading session, the Sensex closed at 85,712.37, gaining 447.05 points or 0.52%, while the Nifty 50 reached 26,186.45, up by 152.7 points or 0.59%.
In the weekly review, the BSE index recorded a slight increase of 5.7 points, whereas the Nifty 50 lost 16.5 points.
Reduced interest rates lower the cost of borrowing, stimulating loan demand and decreasing funding expenses, which benefits both banks and non-bank lenders.
More affordable loans also enhance the ability to purchase vehicles and homes. The RBI’s decision to cut rates, along with a potential rate cut in the US the following week, could spark a temporary rebound in the market, contributing to what analysts refer to as a Santa Claus rally.
Key monitorable for upcoming week:
- US–India Trade Talks: A visiting US trade delegation may unlock breakthroughs. A positive outcome could boost market sentiment and possibly bring FIIs back
- Fed Rate Decision
- India CPI Print
- US Dollar Index: Breakdown from 10 weeks rising channel confirms resumption of decline in US Dollar index. Follow through weakness bodes well for emerging markets
- Rupee Watch: Indian Rupee is approaching upper band of 7 years rising channel, indicating impending trend reversal which would help to revive the market sentiment
Stocks To Buy This Week – Dharmesh Shah
Dharmesh Shah of ICICI Securities recommends buying Larsen & Toubro.
Buy Larsen & Toubro shares in the range of ₹3,980-4,050. He has Larsen & Toubro share price target of ₹4,520 with a stop loss of ₹3,798.
Disclaimer: The Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 5/11/2025 or have no other financial interest and do not have any material conflict of interest.
The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
