RBI’s Monetary Policy Announcement Will Determine the Course of Indian Markets Today

US equity markets ended the day on a mixed note yesterday, 4^th December, 2025. Nasdaq ended the day, up by 51.04 points or 0.22%. Dow Jones ended the day, down by 31.96 points or 0.067%. S&P 500 ended the day, up by 7.40 points or 0.11%.

Jobless claims in US came down to a three year low last week. This, in spite of job losses being reported in November. Markets are still confident that US Federal Reserve will go for a 25 basis point rate cut in its monetary policy meeting next week.

European markets ended in green yesterday

Euro Stoxx 50 ended the day, yesterday, 4^th December, up by 23.52 points or 0.41%. Dax ended the day, up by 188.32 points or 0.79%. FTSE 100 ended the day, up by 18.80 points or 0.19%.

Nikkei is seeing profit booking today after the sharp gains of the past two days. At 8:45 a.m. IST, 5^th December, 2025, Nikkei 225 is down by 563 points or 1.10%. Hang Seng is down by 81.34 points or 0.31%. Shanghai Composite is up by 2.79 points or 0.072%. Kospi is up by 28.49 points or 0.71%.

RBI to make monetary policy announcement today

RBI will make its monetary policy announcement today. Market course today will be determined by this announcement. Some expect that RBI may go for a 25 basis point rate cut. But due to the depreciation of rupee over the past six days, there is also the expectation that RBI may choose to keep interest rate unchanged. If RBI cuts down interest rate today, then rupee may depreciate further against the dollar. When a country cuts down its interest rate then its currency may depreciate with respect to currencies of other countries that have kept interest rate unchanged.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: Dow Jones