Market breadth improved significantly, with 2,552 stocks advancing against 1,642 declines on the BSE.
The gains came despite the rupee hitting record lows against the dollar, with sustained foreign institutional investor outflows continuing to weigh on the currency. However, optimism around improved liquidity conditions and supportive central bank policies globally helped domestic equities shrug off currency headwinds.
“Global risk appetite improved after the US Fed rate cut, boosting liquidity optimism and lifting domestic equities despite the rupee hitting record lows and continued FII outflows,” said Vinod Nair, Head of Research, Geojit Investments Limited. “Auto, Metals, Consumer Durables, and Realty led gains, while FMCG and PSU Banks underperformed.”
Metal stocks emerged as the top performers, with Tata Steel rising 3.38 per cent to ₹172.00 and Hindalco gaining 3.26 per cent to ₹851.20. Eternal surged 2.37 per cent to ₹297.85, while UltraTech Cement advanced 2.25 per cent to ₹11,730.00. Larsen & Toubro rounded out the top gainers with a 1.72 per cent rise to ₹4,072.80.
On the losing side, Hindustan Unilever led the decliners, falling 1.80 per cent to ₹2,264.00. Max Healthcare dropped 0.73 per cent to ₹1,080.00, Sun Pharma declined 0.72 per cent to ₹1,794.20, ITC slipped 0.55 per cent to ₹400.70, and Asian Paints shed 0.52 per cent to ₹2,765.00.
Market breadth improved significantly, with 2,552 stocks advancing against 1,642 declines on the BSE. Notably, 95 stocks hit 52-week highs while 96 touched 52-week lows. The broader indices outperformed, with the Nifty Midcap 100 surging 1.18 percent to 60,283.30 and the Nifty Smallcap 100 gaining 0.94 percent to 17,389.95.
“Nifty opened with a gap-up but quickly gave up gains before finding strong support at 25,935–25,965 zone,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities. “The index has repeatedly defended the 50-day EMA zone of 25,700–25,730 since the last three trading sessions and has now reclaimed the 20-day EMA, signalling renewed short-term strength.”
Technical indicators suggested improving momentum, with the RSI rising from 44 to 54 levels. “The Nifty has moved back above 26,000 after a brief period of weakness. On the 4-hour chart, the RSI is in a bullish crossover, indicating improving momentum,” noted Rupak De, Senior Technical Analyst at LKP Securities.
Bank Nifty closed at 59,380, up 110.70 points or 0.40 per cent, though it spent most of the session in a consolidation band. “Bank Nifty formed a small indecisive Doji on the daily chart, indicating hesitation, but reclaimed its 10-day EMA with a close above it,” said Vatsal Bhuva, Technical Analyst at LKP Securities.
Sectoral performance was mixed, with Nifty Metal ending as the top gainer followed by Nifty Realty, while Nifty FMCG and Nifty Media emerged as the biggest losers.
Looking ahead, analysts expect markets to maintain a positive bias while remaining sensitive to rupee stability, FII flow trends, and clarity on US–India trade agreements. “India’s November CPI, due today, is expected to stay within RBI’s comfort zone, reinforcing policy stability expectations. Near-term focus: rupee levels, FII flows, and trade talks, with global cues from BoJ (likely to hike), ECB, and BoE policy signals,” Nair added.
Published on December 12, 2025
