Expectations of rate cuts by the Reserve Bank of India were fuelled after GDP growth slowed to near two-year low of 5.4% in the July-September quarter due to poor performance of manufacturing and mining sectors.
Several brokerages have lowered their FY25 real GDP growth estimates, while others have suggested that monetary and fiscal support is required to boost growth towards 6.5% YoY alongside RBI action to ease liquidity sooner, if not rate cuts.
Globally, investors have raised wagers on rate cuts as well. US Federal Reserve Governor Christopher Waller said that he is more inclined to cut interest rates, while the probability of a 25-basis-point cut in December rising to 75.2% from 66% a day ago, as per Fedwatch tool.
Back home, the Nifty 50 gained 181 points to close at 24,457, while the Sensex added 598 points to end at 80,846.
The Nifty Bank outperformed, rising more than 1%, with HDFC and Axis Bank among the top gainers. The Midcap Index rose 508 points to 57,509, reflecting broader market strength. Adani Group stocks also saw strong gains, with Adani Ports up 6% and Adani Enterprises rising 3%.
Reliance and ONGC gained up to 2%, following the removal of the windfall tax, while Cipla reversed yesterday’s losses, closing nearly 2% higher. ITC ended in the red but recovered from its lows amid GST-related developments.
Granules India slipped 10% after the US FDA classified its Gagillapur facility as “Official Action Indicated,” while Torrent Power rose 5% as its ₹3,500 crore QIP opened. Niva Bupa surged 10% and Star Health gained 4%, fueled by expectations of a GST reduction on health insurance premiums.
MOIL posted its best-ever November sales, with shares rising 4%. Ola, which has seen gains in seven of the last eight sessions, ended nearly 6% higher. NTPC Green saw a 10% surge, pushing its market capitalization above ₹1 lakh crore.
On the downside, CE Info slipped 9% on plans to enter the B2C business, and Indegene fell 6% following a block deal involving 4.7% of its equity.
Market breadth remained positive, with the NSE advance-decline ratio at 3:1, signalling broad-based investor optimism.
