The Indian stock market experienced a reversal of its three-day losing streak on Thursday, December 11, with the Sensex closing 427 points higher at 84,818.13 and the Nifty 50 settling at 25,898.55, up 141 points. This surge was largely driven by the US Federal Reserve's decision to cut interest rates by 25 basis points, which led to a decline in the US dollar index and a decrease in the US 10-year bond yield to 4.12%.
The market witnessed broad gains, with the BSE Midcap and Smallcap indices rising by 0.79% and 0.51%, respectively. Investors earned approximately ₹2.6 lakh crore in a single session, with the overall market capitalization of BSE-listed firms increasing to ₹466.6 lakh crore from ₹464 lakh crore in the previous session.
The moderation in the US dollar and bond yields following the US Fed rate cut had a positive impact on the Indian stock market. Buying in select index heavyweights, including HDFC Bank, Kotak Mahindra Bank, and Reliance Industries, also contributed to the market's upward trend.
In the Nifty 50 index, 39 stocks ended higher, with Adani Enterprises, Jio Financial Services, and Tata Steel being the top gainers. On the other hand, Asian Paints, SBI Life Insurance Company, and Bharti Airtel were among the top losers.
Most sectoral indices ended with gains, including the Nifty Auto, Metal, and Pharma indices, which rose by around 1%. The Nifty IT index also saw a significant increase, while the Nifty Bank index rose 0.42% to end at 59,209.85.
According to market experts, the 50-day EMA zone of 25,750-25,730 will act as important support for the Nifty index. If the index slips below the 25,730 level, it could trigger a deeper correction. On the upside, the zone of 25,950-26,000 will act as a crucial hurdle for the index, with a sustainable move above 26,000 potentially leading to an upside rally up to the 26,150 level.
The Indian stock market's rebound is a positive sign, but investors should remain cautious and consult with certified experts before making any investment decisions, as market conditions can change rapidly.
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