Nifty, Sensex End At Highest In Over A Month Ahead Of MPC Outcome: Market Wrap

On December 5, 2024, the Indian stock markets experienced a notable boost, with both the NSE Nifty 50 and the BSE Sensex closing at their highest levels in more than a month. The Nifty closed 240.95 points higher, marking an increase of 0.98%, to finish at 24,708.40. Meanwhile, the Sensex saw a gain of 809.53 points, or 1%, closing at 81,765.86.

Main Contributors to Market Gains

Several key companies made significant contributions to the day's market performance. Major players like Infosys, ICICI Bank, Tata Consultancy Services, Bharti Airtel, and Reliance Industries played pivotal roles in driving up the Nifty.

During the trading day, the Nifty index surged as much as 1.6%, reaching a peak of 24,857.75, its highest since October 22. Similarly, the Sensex climbed to a high of 82,317.74, the best level since October 9.

Market Sentiment and Future Outlook

Investors are now keenly awaiting the outcome of the Reserve Bank of India's (RBI) monetary policy committee (MPC) meeting scheduled for Friday, as well as results from the OPEC meeting and US unemployment claims data.

According to Aditya Gaggar, director of Progressive Share Brokers, the market seems to have already factored in the expected MPC outcomes. He mentioned, "The positive trend is likely to continue, but given the substantial rally over the past four days, a minor correction may be on the horizon." He added that the index appears to be approaching a significant psychological milestone of 25,000, while support levels have shifted up to 24,550.

Sector Performance

In terms of sector performance on the National Stock Exchange (NSE), most indices recorded gains, with the Nifty IT index achieving its highest closing figure. However, certain stocks, including NTPC Ltd., Bajaj Auto Ltd., HDFC Life Insurance, SBI Life Insurance, and Grasim Industries, helped to moderate overall gains.

On the BSE, out of 21 sectors, 19 ended the day higher, one sector declined, and one remained flat. The BSE Focused IT sector led the gains, while the BSE Realty sector experienced the largest decline. The market breadth favored buyers significantly, with 2,144 stocks advancing, 1,821 declining, and 118 remaining unchanged.

As the markets closed, the overall sentiment remained upbeat, with expectations high for the upcoming RBI policy decisions.

Markets, Stocks, Investors