Indian equity benchmarks ended Friday’s session on a positive note, marking their second consecutive day of gains, as optimism from global markets spilled
over into domestic trading. Sentiment was boosted after the US Federal Reserve announced a rate cut, prompting buying interest across sectors and pushing headline indices higher by the closing bell. The BSE Sensex climbed 450 points, or 0.53 per cent, to close at 85,267.66, while the Nifty 50 added 148 points, or 0.57 per cent, to settle at 26,046.95. The rally was broader-based, with mid- and small-cap stocks outperforming the frontline indices. The BSE Midcap index jumped 1.14 per cent, while the Smallcap index gained 0.65 per cent, reflecting improved risk appetite among investors. The day’s upmove also translated into a sharp rise in overall market wealth. The combined market capitalisation of companies listed on the BSE surged past Rs 470 lakh crore, up from Rs 466.6 lakh crore in the previous session, adding over Rs 3 lakh crore in a single trading day. Market Volatility And Expert View Despite Friday’s gains, the week as a whole remained challenging for investors due to persistent volatility. “Markets remained volatile and ended the week in negative territory amid mixed domestic and global cues. Sentiment stayed subdued through most of the week and weakened further as selling pressure intensified, though a late rebound in the final sessions helped limit the downside. Persistent foreign fund outflows and a sharp depreciation in the rupee weighed heavily on investor confidence. As a result, the Nifty slipped 139 points to close at 26,046, while the Sensex declined 445 points to end at 85,268,” said Ajit Mishra, SVP, Research, Religare Broking Ltd. Looking ahead, Mishra advised a cautious and selective strategy. “Large-cap exposure remains preferable, particularly in sectors such as private banking, automobiles, metals, and pharmaceuticals. Export-oriented stocks may continue to benefit from a weaker rupee, though IT could remain range-bound given the correction in the US IT-heavy index, the Nasdaq Composite. Caution is advised in mid and small caps as valuations remain elevated and liquidity support has moderated. Besides, traders should avoid chasing stocks facing negative news flow in anticipation of a rebound and wait for clear signs of stability before taking fresh exposure,” Mishra added. Key Triggers: Inflation, Rupee, Global Developments Investors are now closely tracking upcoming macroeconomic cues, including the Wholesale Price Index (WPI) data for November, scheduled to be released on December 15. In October, WPI inflation had eased to –1.21 per cent, largely due to lower food and fuel prices. Meanwhile, the rupee remained under pressure, ending Friday at a record low of 90.49 against the US dollar amid foreign fund outflows and uncertainty around the India–US trade agreement. On the global front, safe-haven demand pushed gold prices higher, with spot gold touching a seven-week high, while silver hit a record level. From a technical standpoint, Mishra noted that Nifty has reclaimed a key short-term average. “Sustained holding above this level will be critical for extending the recovery toward the record high of 26,300, with further upside potential toward 26,550. Failure to maintain this support could lead to a retest of the previous swing low near 25,700, followed by the major support around 25,400, which coincides with the 100 DEMA,” he said.
