Markets Surge: Sensex Up 450 Points, Nifty Crosses 26,150 on IT, PSU Bank Boost

Indian equity markets moved higher on Friday, December 5, after the Reserve Bank of India’s Monetary Policy Committee (MPC), chaired by Governor Sanjay Malhotra, delivered a 25-basis-point rate cut, reducing the repo rate to 5.25%.

By 1 PM, the BSE Sensex had climbed 477.79 points (0.56%) to 85,743.11, while the NSE Nifty50 advanced 156 points (0.6%) to 26,189.75. Among the top performers on the Sensex were Bajaj Finserv, Bajaj Finance, HCL Tech, and State Bank of India, each gaining up to 2.5%. Meanwhile, HUL, Sun Pharma, Eicher Motors, Titan, and Tata Motors (PV) were the biggest laggards, slipping as much as 4%.

In the broader market, the Nifty MidCap index edged up 0.39%, whereas the Nifty SmallCap index declined 0.62%.

Sector-wise, Nifty PSU Bank, IT, and Select Financial Services indices led the rally with gains of over 1%. On the downside, Nifty FMCG, Pharma, Media, and Consumer Durables indices were under pressure, falling up to 0.61%.

Global Markets
Across Asia, equities traded lower after a subdued overnight session on Wall Street. Australia’s S&P/ASX 200 dipped 0.17%, Japan’s Nikkei 225 fell 1.36%, and South Korea’s Kospi hovered just below the flatline.

In the US, major indices ended mixed as traders assessed labour data and broader economic signals. Hopes of a Federal Reserve rate cut next week lent some support. The S&P 500 rose 0.11%, the Nasdaq gained 0.22%, while the Dow Jones slipped 0.07%.

FII–DII Activity
On December 4, foreign institutional investors (FIIs) offloaded shares worth ₹1,681.46 crore, while domestic institutional investors (DIIs) made net purchases of ₹3,188.04 crore.

IPO Watch
Mainboard: Vidya Wires, Meesho, and Aequs enter their final day of subscription.
SME: Methodhub Software, ScaleSauce (Encompass Design India), and Flywings Simulator Training Centre open for subscription. Western Overseas Study Abroad and Luxury Time IPOs move into day two, while Shri Kanha Stainless closes today.
Exato Technologies, Logiciel Solutions, and Purple Wave Infocom are set to debut on the exchanges.

Commodities
Oil prices were mixed in early trade. Brent crude rose 0.94% to $63.26 per barrel, while US WTI crude edged down 0.02% to $59.66 per barrel.