Sensex Soars 1,850 Points, Nifty Gains 2% in a Stunning Market Rally
The Sensex and Nifty 50 posted good gains for the fifth consecutive trading session on December 5th, further establishing their dominance in the Indian market. The Sensex skyrocketed by 1,850 points from its intra-day low and ended at 81,765.86, while the Nifty 50 rose by 2 percent, closing at 24,708.40. Some markets started lower but trended higher in the later trading session, signifying an impressive recovery.
IT and Telecom Stocks Propel the Markets
The IT sector witnessed a high level of gain with Infosys and TCS leading it with more than 3 percent gains. Telecom majors such as Bharti Airtel and Reliance Industries also boosted the market with good gains each. However, the midcap and smallcap indices showed lesser gains, which gave the impression that bigger movements could build up in the future.
Market Anticipation Ahead of RBI Announcement
The market is looking forward to the monetary policy for December 6 to be announced by the governor of the Reserve Bank of India, Shaktishankar Dasu. The market expects a possible Cash Reserve Ratio (CRR) reduction that would help increase liquidity.
Moreover, there has been a revival of FII interest recently, with over Rs 15,000 crore investments in major sectors, including IT, FMCG, and financial services. This is perceived as favorable and supports the overall proposition of investing in Indian equities for global investors.
The index’s movement towards the 25,000 level has attracted traders’ and analysts’ attention, anticipating a rally celebration or a short-lived correction. However, the market has continued to rise, backed by a wide range of advancing stocks, a pointer towards the bullish market. Earlier, Investors used to invest in less risky opportunities like fixed deposits, but they are now shifting their attention towards equities due to a better chance of high return.
