Final Trade: Sensex Up by 111 Points, Nifty Settles Above 24,450; PSU Banks Rally 8%, Auto Drags

On December 4, domestic stock markets saw an impressive performance, with the Sensex maintaining its winning streak for the fourth consecutive session. This marks the longest rally in two months, illustrating a positive shift in market sentiment driven mainly by gains in financial and insurance sectors ahead of the Reserve Bank of India's (RBI) important policy review.

Key Index Performance

The Sensex climbed by 111 points, closing at 80,956, while the Nifty finished with a gain of 10 points at 24,467. However, broader markets outperformed these benchmarks, with the Midcap index soaring by 603 points, reaching 58,112, and the Nifty Bank index increasing by 571 points to settle at 53,267.

Sectoral Movers

Financial stocks, particularly those of HDFC Bank, made significant contributions to the Nifty's gains. Insurance stocks also performed well, with HDFC Life Insurance leading the group, rising 2.56 percent, while Max Financial recorded an almost 3 percent increase.

Stock-Specific Highlights

• Bajaj Auto: Shares fell by 3 percent following a downgrade by UBS after announcing a price cut for its Freedom 125 model.

• Oberoi Realty: The stock hit an all-time high after Nomura initiated coverage with a 'buy' rating.

• Suzlon Energy: Shares increased by 3 percent as the company extended its partnership with Jindal Renewables on a new project.

• Garden Reach Shipbuilders: The stock surged 3 percent after the Defence Acquisition Council approved procurement worth Rs 21,772 crore.

• Wonderla Holidays: Shares surged by 10 percent due to strong demand for its Qualified Institutional Placement (QIP).

• Reliance Power: The stock hit the upper circuit limit of 5 percent after the SECI withdrew a debarment notice against the company.

• PNB Housing Finance: The stock gained 3 percent following an optimistic outlook shared by its management.

Broader Market Trends

The broader market displayed a healthy trend with a three-to-two ratio of advancing to declining stocks, highlighting the overall positive sentiment. Mid and small-cap stocks attracted considerable attention from retail and high-net-worth investors, who focused on quality investment opportunities.

As the market looks ahead to the RBI's policy decision, investors remain hopeful for easing liquidity conditions, anticipating possible monetary policy adjustments that could further lift financial stocks.

Sensex, Nifty, PSU, Banks, Auto