Did Sensex and Nifty Break Their 4-Day Losing Streak?
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Synopsis
In a surprising turn of events, Indian stock markets ended their four-day losing streak, buoyed by gains in the IT sector and a strengthening rupee against the US dollar. Investors remain cautious as they await crucial policy updates from the RBI, setting the stage for potential market movements.
Key Takeaways
- Sensex closed at 85,265.32, gaining 158.5 points.
- Nifty rose to 26,033, up by 47.75 points.
- IT sector led gains, rising by 1.4%.
- Broader market showed weakness with MidCap and SmallCap indices declining.
- Investors are cautious ahead of the RBI policy announcement.
Mumbai, Dec 4 (NationPress) Breaking a four-day decline, Indian stock indices concluded positively on Thursday, fueled by investments in IT shares as the rupee appreciated against the US dollar.
Nevertheless, the gains remained modest as investors exercised caution ahead of the upcoming RBI Monetary Policy Committee meeting scheduled for Friday.
The Sensex settled at 85,265.32, gaining 158.5 points or 0.19 percent. The Nifty also increased, closing at 26,033, up by 47.75 points or 0.18 percent.
“The index largely stayed below the 21 EMA on the hourly chart, indicating ongoing selling pressure during the trading session,” noted analysts.
“Technically, the 26,100–26,150 range is likely to serve as significant resistance, while support is identified at 25,900–25,950,” they elaborated.
“A drop below 26,000 might trigger a swift correction toward 25,950–25,900, as the chart setup appears weak on the hourly timeframe,” remarked market observers.
The broader market exhibited weakness. The Nifty MidCap 100 index closed almost flat with a slight negative trend, while the Nifty SmallCap 100 fell by 0.24 percent.
Among sectoral indices, Nifty IT emerged as the top performer, surging 1.4 percent. Sectors such as Realty, FMCG, Auto, Pharma, Metal, and Chemicals also attracted purchasing interest.
Conversely, Nifty Media declined by 1.45 percent, alongside decreases in the Bank, Financial Services, Consumer Durables, and Oil & Gas sectors.
On the Sensex, the leading gainers included TCS, Bharat Electronics, Tech Mahindra, Infosys, and HCL Tech.
Notable laggards featured Reliance Industries, Maruti Suzuki, Kotak Mahindra Bank, Titan, and Eternal.
Analysts indicated that while the market achieved a positive close, caution prevailed as investors awaited crucial policy signals from the RBI.
“IT stocks outperformed, buoyed by renewed optimism regarding potential Fed rate cuts and favorable currency tailwinds, which enhanced investor interest in the sector,” experts added.
The rupee traded positively, gaining 0.28 paise to reach 89.91 as markets anticipate the RBI policy on Friday, especially after the currency hit record lows earlier in the week.
“The rupee is expected to range between 89.80–90.25, with a breakout potentially pushing it towards 89.25 on the upside or 90.75 with further weakness,” analysts concluded.
Point of View
We recognize the mixed signals in the market today. While the positive close in the Sensex and Nifty brings some relief, the cautious sentiment among investors ahead of the RBI's policy announcement warrants attention. We remain committed to providing insightful analysis that empowers our readers to navigate these fluctuations confidently.
NationPress
04/12/2025
Frequently Asked Questions
What caused the Indian stock market to rise today?
The Indian stock market saw an upswing due to increased buying in IT shares and a strengthening rupee against the US dollar.
How did Sensex and Nifty perform?
The Sensex closed at 85,265.32, up by 158.5 points, while the Nifty finished at 26,033, gaining 47.75 points.
What should investors watch for next?
Investors should focus on the upcoming RBI Monetary Policy Committee meeting, as it could influence market sentiment.
