Dalal Streets Cheer As Sensex Jumps Over 616 Points, Nifty Tests 26,200
The direction of the rupee and fluctuations in crude oil prices are also expected to play a role in shaping market trends.
The Indian benchmark indices ended with significant gains on Monday as the Sensex rose over 616 points to close at 85,545.84 and the Nifty gained more than 195 points to test 26,200 at 3:30 PM.
In the 30-share BSE Sensex, among the top gainers were stocks such as Trent, Infosys, Bharti Airtel, TechMahindra and TPMV. Meanwhile, the laggards included stocks like Titan, L&T, Kotak Bank, and the State Bank of India.
In the broader markets, the Nifty Microcap 250 gained 1.36 per cent. Sectorally, the Nifty IT jumped 2.06 per cent.
During early morning trade, the BSE Sensex rang the opening bell above 85,300, soaring close to 400 points, while the NSE Nifty50 opened the session around 26k, climbing over 100 points, near 9:15 AM.
Stock Market Schedule This Week
Indian stock markets will operate for just four trading sessions this week, with trading shut on Thursday, December 25, in view of the Christmas holiday observed across several global markets. Analysts said domestic equities are likely to trade in a tight range during the truncated week, as investor sentiment will be shaped by foreign institutional flows, currency trends and important global macroeconomic indicators.
Holiday Season to Keep Volumes Thin
With the year-end festive period setting in, market participants expect lower participation and subdued trading volumes. On the domestic front, investors will keep a close watch on infrastructure output data, trends in bank credit and deposit growth, and movements in foreign exchange reserves. The direction of the rupee and fluctuations in crude oil prices are also expected to play a role in shaping market trends.
Global Cues in Focus
Globally, developments in major overseas markets, particularly the US, will remain under close scrutiny, said Ajit Mishra, Senior Vice President (Research) at Religare Broking Ltd. Market participants noted that strong domestic liquidity continues to provide a cushion against sharp downside risks, lending stability to the broader market structure.
Foreign Flows and Risk Appetite
At the same time, a gradual return of foreign fund inflows is being viewed as a potential catalyst for the next leg of market upside, supporting an improvement in overall risk appetite, said Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm.
Key US Data to Decide Sustainability
However, analysts cautioned that the sustainability of the recent momentum will hinge on crucial global macroeconomic indicators, especially upcoming US GDP and core personal consumption expenditure (PCE) data, which are expected to provide clearer signals on growth and inflation trends in the US economy.
Inflation Data Lifts Sentiment
Market sentiment has turned relatively constructive after softer-than-expected US inflation data revived expectations of further monetary easing by the US Federal Reserve. Such a backdrop has historically been supportive for emerging market equities, including India, Ponmudi R added.
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