The domestic equity benchmark indices witnessed a strong start on Tuesday, fueled by a positive trend in global markets and robust buying interest in blue-chip stocks such as HDFC Bank and State Bank of India. The Bombay Stock Exchange (BSE) benchmark Sensex surged by 300.98 points, reaching 80,549.06, while the National Stock Exchange (NSE) Nifty climbed 101.85 points to touch 24,377.90 in early trade.
Top Gainers and Losers
Among the standout performers in the Sensex pack, State Bank of India, Adani Ports, JSW Steel, HDFC Bank, Bajaj Finance, and IndusInd Bank led the rally. These stocks exhibited significant gains, reflecting investor confidence in sectors such as banking, finance, and steel. In contrast, ITC, Bharti Airtel, Sun Pharma, and Power Grid emerged as the day’s laggards, witnessing modest declines amid an otherwise bullish trend.
The rally in Indian equities aligned with gains in major Asian markets, including Seoul, Tokyo, Shanghai, and Hong Kong, as global investor sentiment remained optimistic.
Market Sentiment and Institutional Activity
Foreign institutional investors (FIIs) sold shares worth ₹238.28 crore on Monday, continuing a streak of outflows. However, this was offset by strong domestic institutional investor (DII) activity, with DIIs purchasing shares worth ₹3,588.66 crore. The active participation of DIIs provided a cushion to the markets, indicating robust domestic liquidity and a vote of confidence in the resilience of the Indian economy.
Crude Oil and Currency Movement
Global crude oil prices remained stable, with Brent crude rising 0.13% to $71.92 per barrel. Despite the modest increase, the rupee faced headwinds in the currency market. On Tuesday, the Indian rupee declined by 4 paise, reaching an all-time low of 84.76 against the US dollar. This decline was attributed to the strengthening of the US dollar in global markets and sustained foreign portfolio outflows.
At the interbank foreign exchange, the rupee opened at 84.75 and traded within a narrow range, eventually closing at 84.76. Market experts attribute the rupee’s depreciation to concerns about US trade policy and global monetary tightening.
Impact of Global Developments
Adding to the market dynamics, recent remarks by US President Donald Trump over the weekend have introduced an element of uncertainty. Trump threatened to impose 100% tariffs on BRICS nations if they acted to weaken the US dollar. These comments have fueled concerns about potential trade disputes, further influencing currency and equity markets.
Outlook on RBI Monetary Policy
Investors are keenly awaiting the Reserve Bank of India’s (RBI) monetary policy review scheduled for December 6. The central bank is expected to strike a balance between managing inflation and supporting economic growth. Analysts predict that the RBI’s decisions could set the tone for market movements in the coming weeks.
Closing Figures on Monday
In Monday’s session, the Sensex staged a remarkable recovery from early losses, closing 445.29 points higher at 80,248.08, a gain of 0.56%. Similarly, the Nifty ended the day at 24,276.05, up by 144.95 points or 0.60%. This recovery highlighted the resilience of the Indian equity markets amid global and domestic challenges.
