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As the global artificial intelligence (AI)-led trade moderates due to rich valuations, India will re-emerge as one of the most attractive growth markets in a slowing global environment, Karwa said
The US could substantially slash tariffs on Indian exports as the two countries near a trade deal that could see New Delhi cutting oil purchases from Russia, according to reports
The strong domestic flow, meanwhile, offset the selling by foreign portfolio investors (FPIs) during CY25, who pulled out $23.3 billion (Rs 2.03 trillion) from the domestic equity markets.
Nuvama expects the earnings downgrade cycle to persist as export weakness and slower government spending offset tailwinds from Goods and Services Tax (GST) cuts
The upward revision in RBI's FY26 growth forecast signals strong confidence in India's domestic economic momentum which has consistently beaten expectations
Stock market crash: The Sensex fell 827.27 points, or 1.01 per cent, to an intraday low of 80,332.41, while the Nifty50 dropped 261.4 points, or 1.05 per cent, to 24,629.45 levels.
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India has not done badly-it's just that other markets have done better, Wood said. For India, he believes, the inflows from domestic investors have been critical in preventing a correction.
India remains under-owned: FIIs hold 19 per cent of equities, lagging emerging market averages and FIIs have broadened exposure into small-and mid-caps
DIIs' steady inflows, backed by retail investors and long-term capital, have made Indian markets more self-reliant and less vulnerable to global shocks
FII inflows will return once India's earnings growth shifts back to double digits, most likely in H2FY26, says Sahil Shah, CIO and fund manager of Equirus Asset Management
There is a risk to sustenance of DII flows itself as they lag-rather than lead-market movements. Weak one-year trailing returns could be a meaningful deterrent for domestic investors, the report said.