Bulls Dominate Dalal Street as Sensex Soars 809 Points Ahead of MPC Announcement
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Mumbai, Dec 5 (NationPress) Major equity indices wrapped up in positive territory during a day filled with volatility on Thursday, primarily due to strong buying activity in heavyweight IT stocks.
By the end of trading, the Sensex closed at 81,765, rising by 809.53 points, or 1 percent, while the Nifty finished at 24,708.40, up by 240.95 points, or 0.98 percent.
Investor optimism surrounding the upcoming RBI interest rate decision has been identified as a key factor fueling this stock market rally.
The RBI monetary policy committee (MPC) convened on December 4, with RBI Governor Shaktikanta Das set to announce the MPC decisions on December 6.
During the day, the Sensex peaked at 82,317 and dipped to a low of 80,467.
Market experts observed a significant recovery from the day's lows, resulting in a strong closing. They noted a positive shift from FIIs towards Indian markets in anticipation of a dovish stance from the RBI.
In spite of increased volatility across broader market indices, investor confidence allowed the index to remain in positive territory.
The Nifty Midcap 100 index concluded at 58,441.55, up by 329.15 points, or 0.57 percent, while the Nifty SmallCap 100 ended at 19,333.55, increasing by 160 points, or 0.83 percent.
Sector-wise, IT, auto, financial services, pharma, FMCG, metal, media, energy, and private banks closed in the green, while PSU Bank and realty sectors ended in the red.
Within the Sensex pack, TCS, Titan, Infosys, Bharti Airtel, Bajaj Finance, and ICICI Bank emerged as the top gainers, whereas NTPC, Asian Paints, and IndusInd Bank were the top losers.
Regarding the rupee, Jateen Trivedi from LKP Securities stated: "The rupee traded sideways to positive, closing near 84.70, gaining by 0.06 paise, boosted by strength in the secondary market as indices maintained gains of nearly 1 percent."
"Market participants are looking forward to tomorrow's RBI policy, which will be the last of this calendar year, to provide some encouraging signals. While a rate cut seems unlikely, any hints of a future rate reduction or a decrease in the CRR to enhance liquidity could lend substantial support to both the markets and the rupee," he added.
