Indices trade sideways ahead of RBI policy outcome; breadth negative

The key equity benchmarks traded near flat line in early trade ahead of the RBIs monetary policy announcement. The Nifty traded above the 26,000 level. Besides the RBI outcome, traders are tracking ongoing IPO activity, crude oil trends and global cues. Market participants are also looking ahead to the US Personal Consumption Expenditure data scheduled for release on Friday, which could influence Fed policy.

Consumer durables, media and oil & gas declined while IT, auto and realty shares advanced.

At 09:25 IST, the barometer index, the S&P BSE Sensex declined 11.29 points or 0.01% to 85,254.03. The Nifty 50 index rose 6.35 points or 0.02% to 26,040.10.

In the broader market, the S&P BSE Mid-Cap index rose 0.31% and the S&P BSE Small-Cap index added 0.36%.

The market breadth was negative. On the BSE, 1,345 shares rose and 1,470 shares fell. A total of 181 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,944.19 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 3,661.05 crore in the Indian equity market on 4 December 2025, provisional data showed.

Numbers to Track:

The yield on India's 10-year benchmark federal paper declined 0.06% to 6.527 compared with previous session close of 6.531.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 89.8100 compared with its close of 89.8950 during the previous trading session.

MCX Gold futures for 5 February 2025 settlement fell 0.15% to Rs 129,850.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.03% to 99.03.

The United States 10-year bond yield declined 0.44% to 4.091.

In the commodities market, Brent crude for January 2025 settlement fell 10 cents or 0.16% to $63.16 a barrel.

Stocks in Spotlight:

Zaggle Prepaid Ocean Services shed 0.27%. The company board has approved the acquisition of a 100% stake in Rivpe Technology for consideration of up to Rs 22 crore. The company will purchase 81,429 equity shares and 16,407 compulsory convertible preference shares.

Aditya Birla Sun Life AMC dropped 0.47%^. The company incorporated wholly owned subsidiary, Aditya Birla Sun Life AMC International (IFSC) in GIFT City, Gandhinagar, Gujarat.

Deepak Nitrite gained 1.38% after the companys wholly owned subsidiary, Deepak Chem Tech has commenced the manufacturing operations at its Nitric Acid Plant, Gujarat on 4 December 2025. The total capital expenditure incurred for the same is approximately Rs 515 crore as of the date of commencement of manufacturing operations.

Global Markets:

Asian indices traded mixed on Friday, taking cues from Wall Streets largely flat finish as traders weighed growing expectations of a Federal Reserve rate cut.

US equities ended largely unchanged overnight, supported by firm bets that the Fed will ease policy next week while investors await a key inflation reading. The Dow Jones Industrial Average slipped 0.07%, the S&P 500 rose 0.11% and the NASDAQ Composite added 0.22%.

The probability of a 25-basis-point cut at the Fed's December 9-10 meeting has risen, with futures now pricing in about an 87% chance.

Fresh labour data added to the uncertainty. Weekly jobless claims fell sharply by 27,000 to a seasonally adjusted 191,000, the lowest since September 2022, though holiday-related distortions may have amplified the decline. Earlier in the week, ADP reported a 32,000 drop in private-sector payrolls, the steepest fall in more than two and a half years. Challenger, Gray & Christmas noted that announced job cuts dropped sharply in November, although hiring plans remained subdued.

These indicators arrive against the backdrop of an unprecedented 43-day government shutdown that postponed the Bureau of Labor Statistics official jobs report, now expected only after the Fed's policy decision.

In corporate news, Hewlett Packard Enterprise shares fell 9% in after-hours trade after the company missed fourth-quarter revenue expectations, reporting $9.68 billion against the consensus estimate of $9.94 billion.

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