Indian Stocks Surge as US Inflation Data Fuels Hopes of Interest-Rate Cuts, Boosting Nifty 50 and S&P BSE Sensex

The Indian stock market witnessed a significant surge on Friday, December 19, as risk-on sentiment improved globally following the release of lower-than-expected US November inflation data. This development has reinforced expectations of further interest-rate cuts by the US Federal Reserve, leading to a rally in the stock market.

Market Performance

The Nifty 50 rallied 0.56% to settle at 25,961, just shy of the psychological 26,000 mark, while the S&P BSE Sensex advanced 0.52% to 84,922. The broader market also closed with sharp gains, as both the Nifty Midcap 100 and Nifty Smallcap 100 strengthened 1.2% and 1.34%, respectively.

Sector-Wise Performance

All major sectors advanced, led by Nifty Realty, which surged 1.9%, followed by Nifty Chemicals, Nifty Auto, Nifty Oil & Gas, and Nifty Pharma, all rising between 1% and 1.7%. The rally on Dalal Street came following the release of US inflation data, which increased less than expected in November, showing a 2.7% rise in prices compared to the same month a year ago.

Key Stocks

OLA Electric shares were locked at the 5% upper circuit at ₹34.40 apiece after the company confirmed the completion of a one-time, limited monetisation of a portion of the founder’s personal shareholding. Tata Elxsi shares also regained strength after the recent crash, rallying 8% to ₹5,413 apiece, while KPIT Technologies, Deepak Nitrite, Coromandel International, Hexaware Technologies, and KEI Industries all closed with gains of over 5%.

Other top performers, including Vishal Mega Mart, SJVN, UNO Minda, Kaynes Technology, Bandhan Bank, Gujarat Gas, Endurance Technologies, Kalyan Jewellers India, Laurus Labs, Fortis Healthcare, and Vedant Fashions, also rallied between 3% and 4%.

Laggards

Despite a broad-based rally, select stocks posted sharp losses, with Aditya Birla Lifestyle leading the way, crashing 5% to ₹116.4 apiece. Blue Star also closed 4% lower at ₹1,781, while Five-Star Business Finance, Siemens Energy India, and Kirloskar Oil Engines shed over 3% each.

Asset management stocks witnessed profit booking following the recent rally, with stocks such as Aditya Birla Sun Life AMC, Nippon Life India AMC, HDFC AMC, and Nuvama Wealth AMC dropping 3%, 3%, 1.9%, and 1.8%, respectively.

Disclaimer

Remember, this is a perspective, not a prediction. The Indian stock market is subject to various factors, including global economic trends, interest rates, and company performance. We advise investors to check with certified experts before making any investment decisions, as the stock market can be volatile and unpredictable.