The Indian stock market finished with significant gains on Monday, December 22, amid a rebound in the Indian rupee and positive global cues. Extending gains to the second consecutive session, the Sensex ended 638 points, or 0.75%, higher at 85,567.48, while the Nifty 50 closed at 26,172.40, gaining 206 points, or 0.79%. The BSE Midcap index rose by 0.86% and the Smallcap index jumped 1.12%. Investors earned about ₹4 lakh crore in a single session as the market capitalisation of BSE-listed firms rose to ₹475 lakh crore from ₹471 lakh crore in the previous session.
Infosys, Bharti Airtel, and ICICI Bank were among the top contributors to the gains in the benchmarks.
Only three stocks- SBI, Kotak Mahindra Bank, and Larsen and Toubro- ended in the red in the Sensex index.
Indian stock market: 10 key highlights from the day
1. Why did the market rise?
The market rebound has been driven by a recovery in the rupee and fresh foreign capital inflows. The Indian rupee, which fell to a record low breaching the 91 mark against the US dollar last week, ended 3 paise lower at 89.70 per dollar on Monday.
Positive global cues amid rising expectations of additional rate cuts by the US Federal Reserve next year also boosted sentiment.
“Indian markets extended their year-end rally, supported by strong liquidity and global cues, as expectations of further Fed easing in 2026 continue to underpin growth. FIIs turned net buyers, reinforcing the positive tone, with IT and metals leading gains,” said Vinod Nair, Head of Research, Geojit Investments Limited.
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