BSE Sensex closed at 85,712.37, up by 447.05 points, or 0.52%.
NSE Nifty ended at 26,186.45, rising by 152.7 points, or 0.59%.
Among the broader indices, the Nifty MidCap gained 0.49%, but the Nifty SmallCap dropped by 0.57%, showing a split performance across different market segments.
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Impact on the stock market
Sector-wise performance
The rate cut by the RBI was a significant catalyst for some sectors, while others saw less positive movement.
- PSU Banks led the charge with a 1.5% increase, benefiting from the rate cut which made borrowing cheaper and could stimulate more lending.
- Banking, Auto, IT, Metal, Realty, Oil & Gas, and Chemicals sectors all saw positive movement, showcasing a broad market rally across various industries.
- On the flip side, Media, Pharma, Consumer Durables, and FMCG ended in the red, with investors pulling back in these traditionally stable sectors.
| Sector/Index | Performance |
| IT & BPM sector | 0.90% |
| Healthcare sector | 0.00% |
| Oil & Gas sector | 0.13% |
| Real estate sector | 0.34% |
| PSU Bank in India | 1.51% |
Top gainers today
| Company | Share Price (in ₹) | Change % |
| Shriram Finance | 854.90 | 3.23 |
| SBI | 971.20 | 2.44 |
| Bajaj Finserv | 2,096.50 | 2.31 |
| Adani Enterprises | 2,266.00 | 2.17 |
| Maruti Suzuki | 16,316.00 | 2.01 |
Top losers today
| Company | Share Price (in ₹) | Change % |
| Hind. Unilever | 2,341.00 | -3.34 |
| Interglobe Aviat | 5,368.50 | -1.25 |
| Eternal Ltd | 292.50 | -1.10 |
| Tata Motors PVeh | 353.65 | -0.79 |
| Trent | 4,183.00 | -0.78 |
Market aftermath: Impact on stocks
IT stocks rise on rate cut hopes
The Indian IT sector saw a robust rally, as shares gained for the third consecutive day, driven by growing expectations that the US Federal Reserve may cut interest rates in its upcoming meeting. IT stocks have been benefiting from the anticipated global economic relief.
- HCL Technologies surged nearly 2% to Rs 1,682.90 per share.
- Mphasis, Infosys, and other IT majors also saw gains of 1% or more, as lower interest rates globally could boost discretionary spending, especially in North America, where many IT firms derive a significant portion of their revenues.
The hope for a rate cut by the US Federal Reserve has added optimism to global markets. Experts believe that a rate cut would likely increase consumer and business spending, especially benefiting IT companies with a heavy reliance on North American clients.
BAT sells stake in ITC Hotels
In an interesting corporate move, British American Tobacco (BAT) sold a 9% stake in ITC Hotels for Rs 3,800 crore. This was part of BAT’s ongoing strategy to pare down its debt and exit non-core investments. BAT now holds a 6.3% stake in ITC Hotels, down from 15.3%.
ITC Hotels shares came under selling pressure, dropping 0.83% to Rs 206 per share. While the stake sale may have been a move for BAT’s financial strategy, it casts uncertainty on the hotel company’s stock in the short term.
IndiGo shares extend losses amid operational disruptions
Shares of IndiGo continued to slide, falling more than 3% on December 5, extending losses after the airline faced massive cancellations due to crew shortages and new regulations on pilot work hours.
IndiGo’s stock dropped to Rs 5,265 per share, its lowest level in over five months. The airline has now cancelled over 1,000 flights, primarily from major hubs like Delhi and Chennai, affecting its operational performance.
While IndiGo issued an apology for the disruptions, the market was not convinced. The stock has fallen nearly 9% over the past four days and remains under pressure due to the airline’s operational challenges and regulatory changes.
Crude oil: A global factor in the Indian market
Crude oil has also played a role in shaping today’s market movements. Indian Oil Corp (IOC) and Bharat Petroleum Corp (BPCL) have placed orders for Russian oil cargoes at discounted prices, due to a significant price difference between Russian oil and Brent crude.
- BPCL has purchased four cargoes of Russian Urals and CPC, sold at discounts of $6-$7 per barrel. IOC also bought some Russian oil for January shipments.
- This move comes as part of India’s strategy to secure cheaper energy sources, despite ongoing sanctions on Russian oil. The shift towards cheaper oil will likely impact refining margins and fuel prices in India.
Conclusion
Today’s stock market performance was marked by RBI’s rate cut and positive movements in certain sectors, especially banking and IT. However, significant challenges remain for stocks like IndiGo and ITC Hotels, facing operational and corporate restructuring issues. While global trends, especially US rate cut expectations, continue to provide an optimistic outlook for IT and other export-heavy sectors, the crude oil market also remains a critical factor in driving costs and margins for Indian refiners.
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