Mumbai: The Indian stock market is entering a major event-heavy week where movements will depend on several important factors. Analysts say that macroeconomic data, RBI’s interest rate decision, global trends, and foreign investor activity (FIIs) will be the strongest drivers.
Key Domestic Data to Watch
According to an official statement, India’s industrial production data for October 2025 will be released on December 1.
In addition, November automobile sales numbers, coming out on Monday, will also influence sentiment as they reflect consumer demand during the festive season.
Ajit Mishra, SVP – Research, Religare Broking, said this week has a heavy data calendar which could increase volatility. Apart from auto sales, markets will track HSBC manufacturing, services, and composite PMI readings.
The main focus will be on the RBI’s monetary policy meeting on December 5, where comments on inflation, economic growth, and the rate-cut outlook will be closely watched.
India’s Growth Numbers Boost Optimism
India’s economy grew 8.2 percent in the July–September quarter — the fastest in six quarters. Higher production ahead of GST rate cuts supported consumption and helped balance the impact of higher US tariffs.
RBI Decision and Auto Sales Seen as Big Triggers
Pravesh Gour, Senior Technical Analyst at Swastika Investmart, said that the RBI policy on December 5 will be a major market trigger.
He added that November auto sales, due on December 1, will show clear trends in urban and rural consumption during the festive period.
Markets Near Record Levels
Last week, Sensex gained 474.75 points (0.55 percent), and Nifty rose 134.8 points (0.51 percent).
On Thursday, Sensex hit a record high of 86,055.86, while Nifty touched an all-time high of 26,310.45.
Will Markets Continue Their Rally?
With markets already at high levels, analysts say this week will be crucial in deciding whether the rally continues.
Ponmudi R, CEO of Enrich Money, said the RBI meeting will be the main event to watch.
He added that strong auto sales numbers could support the improving economic outlook and boost investor confidence.
Globally, investors will track manufacturing and services PMI data from major economies, which may further affect market sentiment.