Indian Stock Market Recovers: Sensex Jumps 448 Points, Nifty 50 Surges 151 Points, What's Next for Investors

The Indian stock market made a strong comeback on Friday, ending its four-day losing streak with solid gains. The Sensex jumped 448 points, or 0.53%, to close at 84,929.36, while the Nifty 50 settled at 25,966.40, up 151 points, or 0.58%. This recovery was driven by a stable rupee, positive global cues, and an in-line Bank of Japan's policy decision, which boosted market sentiment.

Market Highlights

The mid and small-cap segment saw stronger gains, with the BSE Midcap index jumping 1.26% and the Smallcap index rising by 1.25%. The overall market capitalisation of BSE-listed firms increased to over ₹471 lakh crore, making investors richer by over ₹5 lakh crore in a single day. Reliance and HDFC Bank were the top contributors to the gains in the Sensex index.

Key Drivers of the Market

The domestic market rose, tracking positive global cues after the US CPI came in weaker-than-expected, fuelling hopes that the US Federal Reserve may cut rates again in January. The Bank of Japan (BoJ) raised rates and signalled more hikes were possible, depending on incoming macro data. Global equities rallied as US CPI undershot estimates, reinforcing expectations of a softer Fed stance. Investors now look for signals on the Fed’s 2026 easing trajectory.

Top Gainers and Losers

• Top gainers in the Nifty 50 index: Shriram Finance (up 4.10%), Max Healthcare Institute (up 2.62%), and BEL (up 2.49%)
• Top losers in the Nifty 50 index: HCL Technologies (down 1.18%), Hindalco Industries (down 0.34%), and Kotak Mahindra Bank (down 0.23%)

Sectoral Indices

All sectoral indices ended higher, with Nifty Realty, Auto, and Healthcare jumping over 1% each. Nifty Oil and Gas and Pharma also jumped by almost 1% each. The Nifty Bank index ended 0.27% higher at 59,069.20, while the Financial Services index rose by 0.41%.

Most Active Stocks

• Vodafone Idea (124.1 crore shares)
• Groww (19.7 crore shares)

Technical Outlook

The Nifty 50 has witnessed a breakout from a falling wedge pattern, indicating improving market sentiment. The index has reclaimed the 21-day EMA on the daily chart and found support near the 50-day EMA. Going forward, 26,000 will be a key level to watch; a decisive move above this level could propel the index towards 26,300. On the downside, immediate support is placed at 25,900.

Remember, this is a perspective, not a prediction. Do your own research and consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.