Market Snaps Four-Day Losing Streak as Nifty Tops 25,900; Broader Markets Outperform on Global Cues
| Index | Price | Change | % Chg |
| Nifty 50 | 25,966.40 | 150.85 | +0.58% |
| Nifty Bank | 59,069.20 | 156.35 | +0.27% |
| Nifty Financial | 27,378.60 | 111.50 | +0.41% |
| BSE SENSEX | 84,929.36 | 447.55 | +0.53% |
Market Breaks Four-Day Losing Run as Global Optimism Lifts Indian Equities
Indian equity markets staged a strong rebound on December 19, snapping a four-session losing streak as global cues turned favourable following softer-than-expected US inflation data. Benchmark indices Sensex and Nifty ended the session firmly in the green, while broader markets outperformed, reflecting a renewed risk-on sentiment among investors.
The NSE Nifty 50 closed at 25,966.40, up 150.85 points or 0.58%, decisively reclaiming the 25,900 mark. Meanwhile, the BSE Sensex rose 447 points or 0.53% to settle at 84,929.36. The recovery was broad-based, with buying seen across sectors such as auto, pharma, oil & gas, realty, telecom and healthcare.
Market participants attributed the rally to a combination of global and domestic factors, including cooling US inflation, expectations of Federal Reserve rate cuts, a stronger rupee and sustained buying by domestic and foreign institutional investors.
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Softer US Inflation Rekindles Hopes of Federal Reserve Rate Cuts
The key trigger for Friday’s rally was a cooler-than-expected US inflation print, which boosted global risk appetite. US consumer prices rose 2.7% year-on-year in November, lower than market expectations of 3.1%, reigniting hopes that the US Federal Reserve could begin easing interest rates in the coming year.
The moderation in inflation, reported by the US Bureau of Labor Statistics, was seen as supportive for emerging markets like India, where lower US rates typically lead to increased foreign capital inflows.
However, some analysts urged caution, noting that the inflation data may have been influenced by distortions caused by the recent US government shutdown. Despite this, the broader market sentiment remained optimistic.
Asian Markets Rally Adds Momentum to Domestic Indices
Indian equities mirrored gains across Asian markets, which tracked an overnight rally on Wall Street. Japan’s Nikkei advanced 1.3%, South Korea’s KOSPI rose 0.8%, and Taiwan’s TAIEX climbed 1.3%, buoyed by strong results from global chipmaker Micron Technology.
MSCI’s broad Asia-Pacific index excluding Japan gained 0.7%, while Chinese blue-chip stocks rose 0.6%. The positive global backdrop helped domestic investors regain confidence after four consecutive sessions of decline.
Nifty and Sensex Close Strong as Broader Markets Outperform
The rebound in Indian markets was marked by notable outperformance in the broader space. The BSE Midcap and Smallcap indices rose around 1% each, reflecting improved risk appetite and selective stock buying.
Despite Friday’s recovery, benchmarks ended the week marginally lower, with both the Sensex and Nifty down about 0.3% each on a weekly basis.
According to Vikram Kasat, Head of Advisory at PL Capital, technical indicators suggest a near-term consolidation phase.
“Nifty closed at 25,815.55 earlier, with pivot analysis indicating support at 25,750 and resistance near 25,885,” Kasat said, highlighting key levels investors should track.
Bank Nifty and Sectoral Indices End in the Green
The banking pack also contributed to the market’s upward momentum. Bank Nifty gained 0.27% to close at 59,069.20, extending its recovery from recent lows.
All sectoral indices ended the session in positive territory, underlining the breadth of the rally. Key sectoral performances included:
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Realty: +1.67%
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Auto: +1.23%
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Oil & Gas: +0.96%
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Pharma: +0.86%
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FMCG: +0.43%
The strength across sectors reflected investor confidence that macro headwinds may ease in the coming months.
Stock-Specific Action Drives Market Momentum
Several stocks saw sharp moves on the back of company-specific developments:
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Shriram Finance surged over 4% after approving definitive agreements with Japan’s MUFG Bank for a ₹39,618 crore ($4.4 billion) investment, marking India’s largest financial services FDI.
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Reliance Industries rose 1.4% after its arm acquired a majority stake in Udhaiyams Agro Foods.
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NBCC India jumped 5% after winning a ₹179 crore order.
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Niraj Cement Structurals gained 6% on securing an order worth ₹322.27 crore.
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Biocon added 1% after receiving an Establishment Inspection Report (EIR) from the USFDA.
Pharma and healthcare stocks also gained traction after the US Senate passed the Biosecure Act, which is expected to push global drugmakers to diversify supply chains away from China.
Top Gainers and Losers Highlight Broad-Based Buying
Among Nifty constituents, gains were led by:
Top Gainers:
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Shriram Finance (+4.10%)
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Max Healthcare (+2.62%)
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Bharat Electronics (+2.49%)
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Tata Motors Passenger Vehicles (+2.43%)
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Power Grid Corporation (+2.05%)
Top Losers:
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HCL Technologies (-1.18%)
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Hindalco (-0.34%)
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Kotak Mahindra Bank (-0.23%)
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JSW Steel (-0.20%)
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ICICI Bank (-0.18%)
The limited downside among losers indicated restrained profit-taking rather than aggressive selling.
New Listing ICICI Prudential AMC Makes Strong Debut
In primary market action, ICICI Prudential AMC, an arm of ICICI Bank, made a strong debut, listing at ₹2,600 per share on the NSE—over 20% premium to its IPO price. The stock ended the session at ₹2,576.40, up ₹411.40 or 19%, reflecting strong investor appetite for quality financial services names.
Rupee Strength and FII Buying Add Support
The Indian rupee appreciated for the third consecutive session, opening at 90.15 per US dollar, compared to 90.25 in the previous session. Over the last three days, the rupee has gained 1.04%, supported by corporate dollar inflows and broad dollar weakness.
“Corporate dollar inflows and broad dollar weakness supported the rupee for a second straight day,” said Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP.
On the institutional front, foreign institutional investors (FIIs) extended their buying for a second straight session, purchasing equities worth nearly ₹600 crore, while domestic institutional investors (DIIs) remained strong buyers with inflows of around ₹2,700 crore.
Technical Outlook: Key Levels to Watch Ahead
From a technical perspective, analysts see encouraging signs for the Nifty. Rupak De, Senior Technical Analyst at LKP Securities, noted that the index has broken out of a falling wedge pattern.
“The Nifty has reclaimed the 21-day EMA after finding support near the 50-day EMA. A decisive move above 26,000 could propel the index towards 26,300,” De said.
He added that 25,900 will act as immediate support in the near term.
Why the Stock Market Rose Today: Key Triggers
Market participants pointed to four primary factors behind the rally:
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Softer US inflation data raising hopes of Fed rate cuts
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Positive global market cues
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FIIs turning net buyers
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Strengthening of the Indian rupee
Together, these factors improved liquidity expectations and boosted investor confidence.
Outlook Remains Constructive Despite Global Uncertainties
While Friday’s rally restored short-term confidence, investors remain watchful of global developments, including central bank actions and geopolitical risks. Japan’s central bank recently raised interest rates to a three-decade high, raising concerns about unwinding of yen-funded carry trades.
Despite these uncertainties, the strong rebound suggests underlying resilience in Indian equities. With macro indicators stabilising and sector-wide participation improving, markets may attempt to build on the momentum, provided global cues remain supportive.
For investors, the session reinforced a familiar theme: corrections driven by global fears can quickly reverse when liquidity expectations improve, keeping India’s equity story intact over the medium to long term.
FAQs Nifty Ends Above 25,900 After Four-Day Slide
Why did the Indian stock market rebound after a four-day losing streak despite global uncertainties?
The Indian stock market rebounded due to softer-than-expected US inflation data, renewed hopes of Federal Reserve rate cuts, strong Asian market cues, FII buying, and a strengthening rupee, which collectively improved risk sentiment.
How does cooling US inflation influence Nifty and Sensex movements in the short term?
Cooling US inflation raises expectations of lower US interest rates, which typically weakens the dollar and Treasury yields, encouraging foreign investors to allocate more capital to emerging markets like India, boosting Nifty and Sensex.
Why did broader market indices outperform benchmark indices in today’s market rally?
Broader indices outperformed as improved risk appetite led investors to rotate into midcap and smallcap stocks, especially in sectors like realty, auto, pharma and infrastructure, which benefit more from easing interest rate expectations.
What role did FII and DII flows play in lifting Indian equities today?
Foreign institutional investors turned net buyers after consecutive selling sessions, while domestic institutional investors continued strong inflows, providing liquidity support and helping benchmark indices close firmly in the green.
How did rupee appreciation contribute to positive sentiment in Indian equity markets?
A stronger rupee reduces imported inflation concerns, signals macro stability and often attracts foreign portfolio investments, which together help support equity market gains.
Why are pharma and healthcare stocks gaining attention after the US Biosecure Act development?
Pharma stocks gained as the US Biosecure Act may accelerate supply chain diversification away from China, creating long-term opportunities for Indian drugmakers and contract manufacturing organisations with global regulatory approvals.
What key technical levels should investors watch for Nifty after crossing 25,900?
Investors should monitor 26,000 as an immediate resistance level; a decisive breakout could push Nifty towards 26,300, while 25,900 is expected to act as strong near-term support.
