RIL, IT stocks power Sensex 1,300 pts higher ahead of MPC outcome, Nifty tops 24,800
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The BSE Sensex surged 1,300 points to trade above 82,200. Meanwhile, Nifty50 was above 24,800 level.
TCS, Infosys, Bharti Airtel and Titan were among the top Sensex gainers.
commentary will likely be crucial for markets following the sharp growth slowdown in the September quarter.
Analysts have also highlighted the growing possibility of the domestic central bank reducing the cash reserve ratio (CRR) – the portion of cash reserves that banks must maintain with the RBI and can use to ensure liquidity in the economy – from 4.5% to 4%.
Among individual stocks, Indraprastha Gas (IGL) rose as much as 4% after the company announced plans to propose a bonus share issue during its upcoming board meeting on December 10.Meanwhile, Federal Reserve Chair Jerome Powell made balanced comments at a New York Times event on Wednesday, describing the economy as in good shape but not really pushing back on market pricing for rate cuts.Earlier this week Fed Governor Christopher Waller had said he was leaning towards a cut later in December. European retail sales figures and German factory orders are due later in the day, though the week's focus is on US employment data on Friday where a strong reading could reverse bond-market moves.
Experts Take
"The Fed chief Powell’s remark yesterday that the “economy is in remarkably good shape” is a shot in the arm for the US bulls. However, there is a concern that the valuations in the US are getting stretched. This concern about high valuations is true in India, too. In a bull market, valuations can get stretched and, therefore, some caution is always good," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
"FIIs turning buyers is positive for markets, particularly for largecaps. The strength in banking stocks has the potential to take the Bank Nifty towards all-time highs. This can help Nifty,too, to move higher," Vijayakumar added.
Deepak Jasani, Head of Retail Research at HDFC Securities, said, "A decisive move above 24,500 is likely to open the next upside of around 24,900 in the near term. The immediate support is at 24,300."
Global Markets
The S&P 500, Nasdaq and Dow had all notched record highs overnight. Over the past week and a half markets have all but priced in an extra US rate cut for 2025 and the implied chance of a cut in December has lifted from even to around 75%.
MSCI's broadest index of Asia-Pacific shares outside Japan was flat in morning trade as selling in Hong Kong offset gains in Australia and Japan. Japan's Nikkei rose about 0.6% to hit a three-week high. Hong Kong's Hang Seng fell around 1%.
FII/DII Tracker
Foreign institutional investors (FIIs) extended their buying on second day as they bought equities of Rs 1,797 crore on December 4, on the other hand, domestic institutional investors also extended their selling as they sold equities of Rs 900 crore on the same day.
Crude Oil
Oil prices rose ahead of an OPEC+ meeting later in the day, with investors waiting to see what the producer group would do next on supply cuts while also monitoring tension in the Middle East.
Brent crude futures climbed 12 cents, or 0.2%, to $72.43 a barrel by 0103 GMT while U.S. crude futures were at $68.70 a barrel, up 16 cents, or 0.2%. Both benchmarks fell nearly 2% on Wednesday.
Currency Watch
The Indian rupee rose 4 paise to 84.71 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, declined 0.08% to 106.23 level.
(With inputs from agencies)
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