Sensex, Nifty end higher as banking stocks rally on RBI rate cut hopes

Benchmark stock market indices closed higher on Wednesday, maintaining their positive momentum fuelled by gains in banking sector stocks over a possible rate cut in the RBI MPC announcement on Friday.
The S&P BSE Sensex gained 110.58 points to close at 80,956.33, while the NSE Nifty50 added 10.30 points to end at 24,467.45.
Vinod Nair, Head of Research, Geojit Financial Services said that the domestic market maintained a positive trajectory, despite some volatility stemming from mixed sentiments in Asian markets due to the situation in South Korea.
The top gainers include HDFC Life, which rose 2.52%, HDFC Bank with a 1.67% increase, Bajaj Finserv gaining 1.42%, Apollo Hospitals up 1.38%, and NTPC rising 1.37%.
On the downside, the major losers were Bharti Airtel, down 2.28%, CIPLA falling 2.21%, Bajaj Auto decreasing 1.77%, Tata Motors losing 1.63%, and Adani Ports declining 1.62%.
“Broader indices showed strong performance, with the banking and financial sectors continuing to excel. Conversely, auto stocks were impacted by mixed November sales results,” he added.
“The upcoming speech by the FED Chair could sway market sentiments, as recent FED minutes have shown confidence in the easing of inflation. Although the effects of US policies under the new administration remain uncertain, the minutes suggest a probable continuation of the rate easing cycle,” added Nair.
VLA Ambala, Co-Founder of Stock Market Today said that in today’s session, Nifty tested the 24,500 mark and formed a Doji candlestick pattern on the daily timeframe, indicating a positive sign for mid-term and long-term buyers.
“Shares of defence stocks soared by nearly 5% in early trading hours after the Defence Acquisition Council approved the INR 21,772 crore acquisition proposal. Stocks such as Mazagon Dock Shipbuilders and Garden Reach Shipbuilders led this fresh rally with a gain of 5%, while other players like Bharat Electronics, Hindustan Aeronautics, and Bharat Dynamics gained 2-3%. The approval could strengthen the order books and trigger more buying in the sector,” said Ambala.
The top performing sectors were led by Nifty PSU bank which was up 2.25%, then Nifty Realty, which gained 2.14%, followed by Nifty Bank up 1.08%, Nifty Financial Services and Nifty Financial Services 25/50 both rising 1.10%, Nifty Private Bank increasing 0.86%, and Nifty Midsmall Healthcare advancing 0.84%. The Nifty Healthcare Index, Nifty Consumer Durables, and Nifty Media also saw gains of 0.22%, 0.77%, and 0.75% respectively.
On the downside, Nifty Oil & Gas declined 0.29%, Nifty FMCG fell 0.73%, Nifty IT decreased 0.44%, and Nifty Pharma dipped 0.10%. The Nifty Auto sector also saw a 0.71% drop.
“The market was buoyed by strong performances in the public sector banks and Realty sectors, which saw increases of over 2% each. while, most of other sectors faced slight declines. Investors are now closely watching upcoming economic data and the Reserve Bank of India’s monetary policy meeting scheduled in December, which could influence market sentiment further,” said Vaibhav Vidwani, Research Analyst, Bonanza.