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Sensex, Nifty Snap 4-Day Losing Streak Amid Cautious RBI Wait

Indian stock markets finally broke their four-day losing streak on Thursday. The Sensex and Nifty both closed slightly higher, though gains were modest. Investors are playing it safe as they wait for the RBI's big policy announcement. The rupee also managed to gain some ground against the dollar.

Key Points: Sensex Nifty End Losing Streak as Rupee Gains Before RBI

  • Markets ended a four-day decline with modest gains led by IT stocks
  • Broader market indices like MidCap and SmallCap remained weak or negative
  • All eyes are on the RBI Monetary Policy Committee decision scheduled for Friday
  • The rupee gained 0.28 paise, trading at 89.91 against the US dollar
2 min read

Sensex, Nifty end 4-day losing streak, rupee gains

Indian stock markets closed higher, led by IT stocks, while the rupee strengthened. Investors remain cautious ahead of the RBI's monetary policy decision.

"The index mostly remained below the 21 EMA on the hourly chart, reflecting sustained selling pressure during the session. - Analysts"

Mumbai, Dec 4

Snapping a four-day losing streak, Indian stock markets ended higher on Thursday, helped by buying in IT shares as the rupee traded positive with gains against the US dollar.

Gains, however, stayed modest as investors turned cautious ahead of the RBI Monetary Policy Committee’s decision scheduled for Friday.

The Sensex closed at 85,265.32, rising 158.5 points or 0.19 per cent. The Nifty also moved up, finishing at 26,033, higher by 47.75 points or 0.18 per cent.

"The index mostly remained below the 21 EMA on the hourly chart, reflecting sustained selling pressure during the session,” analysts said.

“Technically, the 26,100–26,150 zone is expected to act as crucial resistance, while support is placed at 25,900–25,950,” they added.

“A fall below 26,000 may trigger a quick correction towards 25,950–25,900, as the chart setup appears weak on the hourly timeframe," market watchers stated.

Broader market performance remained weak. The Nifty MidCap 100 index ended almost flat with a slight negative bias, while the Nifty SmallCap 100 slipped 0.24 per cent.

Among sectoral indices, Nifty IT was the biggest mover, jumping 1.4 per cent. Realty, FMCG, Auto, Pharma, Metal, and Chemical indices also saw buying interest.

On the other hand, Nifty Media dropped 1.45 per cent, and Bank, Financial Services, Consumer Durables, and Oil & Gas sectors also declined.

On the Sensex, the top gainers included TCS, Bharat Electronics, Tech Mahindra, Infosys, and HCL Tech.

Major laggards were Reliance Industries, Maruti Suzuki, Kotak Mahindra Bank, Titan, and Eternal.

Analysts said that the market managed a positive finish but stayed cautious as investors awaited key policy cues from the RBI.

“IT stocks outperformed, buoyed by renewed optimism around potential Fed rate cuts and favourable currency tailwinds, which strengthened investor appetite for the sector," experts added.

Rupee traded positive with gains of 0.28 paise at 89.91 as markets await the RBI policy on Friday, especially after the currency hit all-time lows this week.

“Rupee range is seen between 89.80–90.25, with a breakout potentially taking it toward 89.25 on the upside or 90.75 on further weakness," analysts said.

- IANS

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Reader Comments

S
Sarah B
Interesting to see IT leading the charge. The Fed rate cut speculation is clearly helping our tech giants. My portfolio is heavy on Infosys and TCS, so today was a good day. Fingers crossed the rupee holds steady.
V
Vikram M
A gain of 0.19% is hardly something to celebrate. It's more of a pause before the RBI decision. The broader market is still weak, which shows retail investors are not convinced. The caution is very much justified.
R
Rohit P
Good to see Bharat Electronics in the top gainers! Atmanirbhar Bharat in action. 🇮🇳 But Reliance dragging down the index is a worry. The market needs its heavyweights to perform for a sustained rally.
P
Priya S
As a small investor, these tiny gains don't make up for the losses of the past week. The smallcap index is still down. Feeling the pinch. Hope the RBI gives a clear direction tomorrow, this volatility is exhausting.
M
Michael C
The technical analysis here is spot on. 26,100-26,150 is a key resistance for Nifty. Until we break and close above that, this is just a dead cat bounce. Staying in cash until the RBI event risk is over.
K
Kavya N

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