Sensex and Nifty End on a High Note; Gains Led by Key Sectors
Mumbai, December 2 – After a sluggish start, the stock market rallied on Monday, closing the trading session on a positive note with both benchmark indices making notable gains.
The Sensex climbed 445.29 points, or 0.56 per cent, to close at 80,248.08, while the Nifty 50 advanced 142.90 points, or 0.59 per cent, to settle at 24,274.00. Robust buying activity was observed, with 31 of the 50 Nifty-listed stocks recording advances, while 18 ended in the red.
Among the top gainers were Ultratech Cement, Apollo Hospitals, Grasim Industries, Shri Ram Finance, and JSW Steel, which performed strongly across sectors, buoying market sentiment.
However, a few stocks faced selling pressure, including HDFC Life, NTPC, Cipla, SBI Life, and Hindustan Unilever, reflecting mixed investor sentiments in specific sectors.
The recovery from a weak opening underscored growing investor confidence, bolstered by gains in construction, healthcare, and financial stocks. Analysts credited the uptick to favorable global cues and resilient domestic market fundamentals, which collectively reinforced optimism as the session progressed.
Vinod Nair, Head of Research at Geojit Financial Services, noted, “Despite a slump in the Q2 growth rate, the market maintained a positive bias as the core sector output in October shows signs of recovery. Slowing earnings growth is already factored in the market, and mid & small-caps are rebounding.”
He further cautioned, “However, investors stay marginally cautious ahead of RBI policy this week due to the risk of a cut in GDP forecast. The current inflation dynamics are not favorable for a rate cut in the short term, and the RBI is likely to turn more realistic on its growth projection for FY25.”
VLA Ambala, Co-Founder of Stock Market Today, added insights into India’s economic strategy, stating, “Economic policy is the final output of geopolitical strategy, and a policy war between the world’s most powerful economic countries is dividing the global landscape, with India as the center. As the world’s largest consumer market, India has immense potential for manufacturing growth. However, this will require a lot of investment and management.”
She further commented, “India is at a critical juncture where every decision could have significant impacts. For instance, India recently chose not to sign the 15-nation Regional Comprehensive Economic Partnership (RCEP) agreements. While the move aims to bolster self-reliance, it adds pressure to the current market situation. Meanwhile, BRICS, a vital trade bloc where India holds a strong position, faces challenges from the U.S., which is opposing efforts to foster trade within the BRICS system.”
The day’s trading session reflected optimism tempered with caution as investors await the Reserve Bank of India’s policy decisions, which could set the tone for future market movements.
