Weekly Market Review & Top Stocks In Focus For The Week Ended December 5, 2025

The weak started on a weak note despite strong Q2FY26 GDP numbers that beat consensus expectations as economists were expecting some moderation from Q1FY26 numbers of 7.8% but still above the 7%+ mark. However, the actual number has beaten the expectation with growth coming at 8.2% vs 5.4% YoY and 7.8% in Q1FY26. However, there was a drop in Nominal GDP to 8.7% and we believe this would have been a cause of worry for the markets because it drives income growth, corporate earnings, tax revenues and budget’s fiscal math and this signals mixed picture because when Nominal growth remains soft, people don’t actually recognise economy’s strength. Also, if it doesn’t increase, then demand may get impacted or it may even remain sluggish which may overall impact the revenue and EPS growth.

Apart from this what caught everyone’s attention was the weakening rupee as it has dropped nearly 5% against the dollar this year and has in fact hit the Rs 90 mark for the first time ever following record breaking trade deficit, stalled trade deal with the US and slowing foreign investments. FIIs have pulled out nearly $17 billion translating to 2nd consecutive year of outflows making the market unattractive. This pressure is likely to persist in the near term but importantly we have adequate reserves about $688 billion. The impact of the same will be good for Exporters and not so good for Importers.

This brings us to the sectoral impact. Starting with IT Sector first, it has been an underperformer with YTD Index down 13% and 18% from its all-time high levels.  IT is expected to react positively because declining rupee could benefit them as they earn in US dollar and decline in rupee enhances their earnings. With respect to Pharma, it is likely to have a short-term impact. They will have a positive reaction but to a limited extent because most of the Indian Pharma companies hedge their USD exposure.

From Pharma we move to Auto and there are certain companies that will benefit the most but this depends on the kind of exposure they have from export sales. Higher the sales from exports, higher will be the revenue. Management of Baja Auto in one of the media interactions mentioned that if there is a fall of rupee one against US dollar, it lifts EBITDA on an Annualised basis by almost Rs 200 crore so one can imagine what can the increase be. Having said that, the impact of this on Auto Ancillaries is expected to be a mixed bag and it entirely depends on dependency of importing materials. Coming to Oil & Gas, over here as well the impact is expected to be mixed with Oil Producers likely to benefit from the same because their realisations are dollar denominated while for Oil Marketing Companies it is expected to be mixed because they see some imports. Lastly, Chemicals as a sector is very vast and companies that have exposure to the US and they get revenue in terms of dollars tend to benefit.

As we end the week, we had the important RBI MPC Meeting Outcome and  the Governor has given everything that the market and the economy wanted. We have got the 25bps rate cut to 5.25%, the Governor has promised to buy Rs 1 Lakh Crore of bonds that will bring liquidity into the system plus there is $5 billion FX swaps which will also push in liquidity. Along with this, the growth as well as inflation projections have been revised. The RBI now expects FY26 GDP growth to be at 7.3% from the earlier 6.8% while Inflation trajectory is seen at just 2% from earlier 2.6%. Overall we believe that outcome is exactly in line with expectation and that should lift the sentiment going ahead. With this let me present to you our weekly market review.

How Did the Markets Fare Last Week?

On a weekly basis ending on Friday, the Indian benchmark indices ended mixed. While Sensex ended marginally in green up 0.01%, Nifty and Midcaps were down by 0.06 % and 1.26% respectively. 

What Might Keep the Markets Busy Into the Next Week?

The coming week will be important on the global front as investors across the world will be focussing on the key FOMC meeting outcome scheduled for 9-10th December. There is a strong buzz around a potential rate cut for the third consecutive time after President Trump announced his plans to name his pick for the next Fed Chair in early 2026 along with recent flurry economic data releases that further raised expectations for an interest rate. As market positions before the key event; there are other important data releases like Nonfarm Productivity, Unit Labour Cost, JOLTS Job Openings, Producer Price Index, Initial Jobless Claims, Fed Official Speeches etc which will also be monitored.

On the domestic front after the RBI’s MPC Outcome, there are limited data releases but there are some important releases as well like the Consumer Price Index i.e. your inflation data, Bank Loan Growth, FX Reserves that will be tracked.

With limited domestic cues, markets are likely to move in the direction of global markets with the key FOMC Meeting Outcome lined up. Along the way market participants will also likely to track the Foreign Institutional Activity, Rupee Movement and Update with respect to India-US trade deals that are likely to drive Market Movement.         

Crude and FII Flows

Brent Crude Oil Prices are holding steady and marginally closed above $62/bbl due to ongoing geopolitical tensions and uncertainties surrounding global supply and demand. On the other hand, FIIs were Net Sellers for the week.

Sector in Focus

IT, Metals & Auto remained in focus during the week.

Stocks That Remained In Focus During The Week

HCL Technologies: 

• Strategy and HCL Tech have formed a strategic partnership to accelerate global adoption of Strategy Mosaic, the AI-powered Universal Semantic Layer. HCL Tech will combine its consulting and AI expertise with Strategy’s engineering strengths to integrate and scale Mosaic across complex multicloud environments. The collaboration enables seamless, enterprise-grade deployments for demanding data ecosystems.

Diamond Power:

• The company has received a letter of intent from Adani Green Energy Limited for Supply of 33KV HV Cables 2126 kms and 3.3KV Solar MV Cables 3539 Kms for Khavda and Rajasthan Project worth Rs 747 crore. The time period within the order has to be executed is from January to December 2026.  

Deepak Nitrite: 

• Deepak Chem Tech, a wholly owned subsidiary of Deepak Nitrite, has begun operations at its new ₹515-crore Nitric Acid Plant in Nandesari, Gujarat. The facility strengthens the Group’s backward and forward integration, enhancing supply security for key intermediates and enabling deeper penetration into high-value applications. This marks a major step toward building a fully integrated, high-value chemical platform spanning Ammonia to Amines.

RailTel:

• RailTel Corporation of India Ltd. has received the work order from Mumbai Metropolitan Region Development Authority as Selection of System Integrator (SI) for Design, Development and Implementation of Regional Information System for Mumbai Metropolitan Region and Urban Observatory at MMRDA, Mumbai amounting to Rs 48.77 crore (Excluding Tax). The time period for completion of the said order is 28th December 2027. 

Godawari Power & Ispat: 

• The company has received “Consent to Operate” for its additional 2 MTPA iron ore pellet plant from the Chhattisgarh Environment Conservation Board and has already initiated plant operations. Commercial production is expected within a week, after which exchanges will be notified. With this expansion, the firm’s pellet capacity rises from 2.7 MTPA to 4.7 MTPA.

Indigo: 

• IndiGo is facing a severe operational breakdown, with on-time performance plunging to 35% and nearly 200 flights disrupted across major airports. A sharp crew shortage caused by new FDTL norms mandating longer rest hours has grounded several aircraft and led to delays of up to eight hours. With IndiGo holding 60% domestic market share, the disruption has significantly impacted the wider aviation network.

Petronet LNG: 

• ONGC and Petronet LNG have signed a 15-year binding term sheet for ethane unloading, storage and handling services, set to begin between Oct–Dec 2028. PLL is building a 1,70,000 m³ ethane storage facility and a versatile third jetty at Dahej capable of handling ethane, propane and LNG.

Hindustan Copper:

• The company has executed an Memorandum of Understanding (MoU) with NTPC Mining Ltd (NML) to jointly participate in copper, critical minerals block auctions, develop and operationalize blocks for exploration, mining and processing of minerals. The objective of the MoU is to explore the possibility of joint investments for the development, mining and processing from existing assets of HCL and also to collaborate on existing and future domestic/overseas copper and critical minerals projects.

DR. Reddys: 

• According to media sources, company’s unit Aurigene Oncology Ltd has reported encouraging initial results from the first two cohorts of its Phase 1 trial of AUR112, an oral MALT1 inhibitor for relapsed/refractory lymphoid malignancies. The candidate demonstrated a favourable safety profile along with objective responses in lymphoma patients. Early data showed a strong 63.6% overall response rate, highlighting AUR112’s potential as a promising therapy in difficult-to-treat lymphomas. 

NRB Bearings: 

• The company has entered into a JV with Italy’s Unitec (Mondial Group) to manufacture a new range of cylindrical roller bearings for the industrial segment. Unitec will provide technical and operational expertise and has committed to buying back 20% of the JV’s output. The JV will be set up in Uppal, Hyderabad.