The Indian equity markets saw a volatile session on December 5, 2024, as the benchmarks swung between gains and losses before closing with strong gains. The Sensex jumped 809.53 points or 1%, while the Nifty rose 240.95 points or 0.98%, driven by robust buying in heavyweight stocks and optimism ahead of the RBI policy decision.

Positive sentiment was supported by FIIs returning as net buyers, favorable global cues following comments by US Federal Reserve Chair Jerome Powell, and sector-specific strength.

Sectoral Performance

1. Nifty IT: The top-performing sector, gaining 2% as optimism around US technology shares spilled over into the Indian market. Infosys, TCS, and HCL Tech led the charge.
2. Banking and Financials: Strong inflows and RBI rate-cut expectations drove gains in private sector banks and financial stocks.
3. Realty and PSU Banks: Marginal underperformance, with sectoral indices ending flat to negative.

Key Gainers

1. Central Depository Services (CDSL): Shares surged 8%, hitting an all-time high amid heavy volumes. The stock has more than doubled year-to-date, outpacing broader market gains.
2. Nifty IT Stocks: Infosys and TCS climbed over 3%, contributing significantly to Nifty’s rally.
3. Zomato: Shares rose nearly 5% after CLSA raised the target price to Rs 370, citing strong growth levers.
4. Indus Towers: Gained 2% following a block deal worth Rs 2,802 crore, where UK's Vodafone Group likely sold a 3% stake.
5. BSE Limited: Shares jumped over 14% after entering the F&O segment, continuing their strong 2024 performance.
6. Maharashtra Seamless: Surged over 11% on heavy trading volumes, marking a significant departure from its usual activity.

Key Losers

1. Genus Power: Dropped 5%, locked in the lower circuit after an ED search at the company’s offices and the Chairman's residence.
2. Divi's Laboratories: Declined 3% following US court developments that could impact its contract manufacturing business for Novartis’ Entresto.
3. Lancer Container Lines: Shares fell significantly year-to-date but gained 5% today on news of a partnership with Dubai-based OVSL.

Stock-Specific Developments

• Aurobindo Pharma: Continued gaining momentum after US FDA approval for a high-demand oncology product.
• Adani Energy Solutions: Positive investor sentiment following a new renewable energy project contract win.
• PG Electroplast: Hit an all-time high after a QIP announcement.
• Indraprastha Gas: Gained 6.5% after announcing plans to issue bonus shares, further energizing investor interest.

Global and Domestic Factors

• Positive remarks by US Fed Chair Jerome Powell on economic resilience bolstered global sentiment.
• Domestic optimism around the RBI’s monetary policy meeting, with rate-cut expectations driving interest in rate-sensitive stocks like banks and NBFCs.

Outlook

The robust rally in heavyweight stocks, particularly IT and financials, reflects positive momentum ahead of the RBI policy. Broader market participation and sectoral leadership suggest further upside potential. However, global cues and RBI's policy outcome tomorrow will play a pivotal role in shaping short-term market trends.

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