December 05, 2025

TOP NEWS

Reliance Industries: S&P Global Ratings has raised RIL's long-term issuer credit rating to 'A-' from 'BBB+' on the back of improved cash flow stability and the growing importance of its less cyclical consumer-facing businesses. The ratings on its senior unsecured debt were also upgraded to 'A-', reflecting the company’s robust financial position. - Positive

Zen Technologies: The defence player has secured defence orders worth Rs 120 crore from India’s Ministry of Defence for supplying a suite of training simulators and equipment, strengthening its position in the military training systems segment. The contract includes the delivery of the company’s comprehensive training node (CTN).

Diamond Power Infrastructure: The company has received an order worth Rs 748 crore, from Adani Green Energy for solar cable supply. It is expected to be completed between January 2026 and December 2026.

Deepak Nitrite: Chemical manufacturer Deepak Nitrite announced that its wholly-owned unit Deepak Chem Tech has begun operations at its new nitric acid plant located in Nandesari, in Gujarat’s Vadodara district. The plant became operational on December 4, 2025, after a total investment of roughly Rs 515 crore.

ITC Hotels: British American Tobacco (BAT) is looking to sell its stake in ITC Hotels. The tobacco group plans to sell between 7 per cent and its entire 15.3 per cent stake in ITC Hotels.

Kaynes Technology shares fell 6% after Kotak Institutional Equities highlighted discrepancies in inter-company transaction disclosures between the parent and its subsidiaries. The brokerage noted significant unrecorded transactions and receivables, alongside concerns about accounting for goodwill and intangibles. 

MACRO OUTLOOK

·         India Macro: RBI will be coming up with its monetary policy decision today and as per the consensus estimates it is expected that the central bank will cut repo rate by 25 bps. Key reasons sighted for the same is benign CPI inflation and to push economic growth. In case of rate cut banks would see repricing of floating rate loans which could impact NIMs in near term, while companies with higher quantum of fixed rate loans (NBFCs like Bajaj Finance, L&T Finance, Cholamandalam etc.) could have positive impact as funding cost may fall.

·         The DJIA edged down 0.1%, the S&P500 and the Nasdaq Composite Index rose 0.1% and 0.2% respectively. The Eurostoxx 50 rose 0.4%. The Dollar Index edged up 0.1% to 98.99. EUR-USD fell 30 pips to 1.1640.

·         The US 2Y yield rose 4bp to 3.52% while the 10Y yield gained 3.5bp to 4.10%. The German 10Y yield rose 2bp to 2.77%. The UK 10Y yield edged down 1bp to 4.44%. Brent crude oil prices rose 0.9% to USD63.26. Gold edged up 0.1% to USD4,208

·         Global Macro: US labour data fared mixed. The BLS’s initial jobless claims saw a sharp 27k slump to 191k for the week ended 29 November. The Challenger job data indicate employers cutting 71.3k jobs in November, but far lower than October’s -153K. Softening of labour market may push for rate cuts, sentimentally positive for Gold.

·         The US Fed funds futures are pricing in 91% chance of a 25bp cut at the 9-10 December meeting. They are pricing in a total cut of 59bp by June-2026 and 86bp by December-2026. Positive for gold.

·         Data watch:   German factory orders, Eurozone 3Q GDP, US personal income and spending, US PCE price index, and US consumer sentiment.

OTHER NEWS

Yes Bank: The Life Insurance Corporation of India (LIC) has signed a strategic bancassurance partnership with YES Bank, wherein the Bank’s customers will have access to LIC’s life insurance products.

Hindustan Unilever: Hindustan Unilever (HUL) will separate its ice-cream business into a new company, Kwality Wall’s India Ltd (KWIL), and the record date is December 5, 2025. Anyone who holds HUL shares on this date will get one KWIL share for every one HUL share they own. December 4, 2025, was the deadline to buy HUL shares if investors wanted to be eligible for the demerger.