Sensex jumps 427 points, Nifty 50 ends near 25,900 after US Fed rate cut— 10 key highlights from Indian stock market

The Indian stock market snapped its three-day losing run to end with healthy gains on Thursday, December 11, after the US Federal Reserve cut interest rates by 25 basis points and signalled one more rate cut next year, which drove the dollar index down by 0.25% during the session and dragged the US 10-year bond yield lower to 4.12%.

The Sensex closed 427 points, or 0.51%, higher at 84,818.13, while the Nifty 50 settled at 25,898.55, up 141 points, or 0.55%. The market witnessed broad gains as the BSE Midcap and Smallcap indices also rose by 0.79% and 0.51%, respectively.

Investors earned about ₹2.6 lakh crore in a single session as the overall market capitalisation of BSE-listed firms rose to ₹466.6 lakh crore from ₹464 lakh crore in the previous session.

Indian stock market: 10 key highlights from the day

1. What drove the Indian stock market higher?

Moderation in the US dollar and bond yields after the US Fed rate cut influences sentiment back home. Buying in select index heavyweights, including HDFC Bank, Kotak Mahindra Bank, and Reliance Industries, kept the benchmarks in the green zone.

"Domestic markets rebounded broadly following the Fed’s expected 25-bps rate cut amid high U.S. inflation. The decline in US 10-year yields indicates a moderation in future FII outflows, which bolstered sentiment," said Vinod Nair, Head of Research, Geojit Investments Limited.

2. Top gainers in the Nifty 50 index

As many as 39 stocks ended higher in the Nifty index, among which Adani Enterprises (up 2.65%), Jio Financial Services (up 2.63%), and Tata Steel (up 2.57%) ended as the top gainers.

3. Top losers in the Nifty 50 index

Shares of Asian Paints (down 1%), SBI Life Insurance Company (down 0.86%), and Bharti Airtel (down 0.63%) ended as the top losers in the index.

4. Sectoral indices today

Most sectoral indices ended with gains. Nifty Auto, Metal, and Pharma indices rose by a per cent. The Nifty IT index also rose by almost a per cent. Nifty Bank rose 0.42% to end at 59,209.85.

5. Most active stocks in terms of volume

Vodafone Idea (119.5 crore shares), Ola Electric Mobility (9.8 crore shares), and Meesho (8 crore shares) were the most active stocks in terms of volume on the NSE.

6. 13 stocks jump more than 15% on BSE

Rapid Multimodal logistics, Octaware Technologies, Dhillon Freight Carrier, SecMark Consultancy, and Rico Auto Industries were among the 13 stocks that surged more than 15% on the BSE.

7. Advance-decline ratio

Out of 4,341 stocks traded on the BSE, 2,448 advanced, while 1,742 declined. Some 151 stocks remained unchanged.

8. 85 stocks hit 52-week highs

Some 85 stocks, including Samvardhana Motherson International, Eicher Motors, Cummins India, Vodafone Idea, and Esab India, hit their 52-week highs in intraday trade on the BSE.

9. Over 160 stocks hit 52-week lows

Trent, NCC, Sterling and Wilson Renewable Energy, Piramal Pharma, PCBL Chemical, Page Industries, Vedant Fashions, Dixon Technologies (India), Crompton Greaves Consumer Electricals, Blue Dart Express, and BASF India were among the 166 stocks that fell to their 52-week lows on the BSE on Tuesday.

10. Nifty's technical outlook

According to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, the 50-day EMA zone of 25,750-25,730 will act as important support. 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. Any sustainable move above the 26,000 will lead to an upside rally up to the 26,150 level, said Shah.

Shrikant Chouhan, the head of equity research at Kotak Securities, believes that 25,850 and 25,700 would act as key support zones.

"As long as the market is trading above these levels, the uptrend formation is likely to continue. On the higher side, 25,950 would act as an immediate resistance area for the bulls. A successful breakout above 25,950 could push the market up to 26,000–26,075. On the flip side, below 25700 uptrend would become vulnerable," said Chouhan.

Read all market-related news here

Read more stories by Nishant Kumar

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.