Sensex and Nifty Stage Dramatic Comeback, Hit New Highs
The Indian stock market showcased remarkable resilience on December 13 as the Sensex and Nifty erased early losses to close with strong gains. The Sensex rebounded sharply from an intraday low of 80,083, surging over 2,100 points to hit a high of 82,214. Similarly, the Nifty 50 jumped over 600 points, reaching an intraday peak of 24,792, driven by a dramatic turnaround during the weekly expiry of derivatives contracts.
Gains across key sectors like financial services, telecom, IT, FMCG, oil & gas, and auto fueled the recovery. By the end of the session, the Sensex was up 843 points (1%) at 82,133, while the Nifty gained 219 points (0.9%) to close at 24,768. Market breadth remained mixed, with 1,741 shares advancing and 2,086 declining.
Key Drivers of Recovery
The sharp rebound was attributed to short-covering and positive sentiment following steep early losses. Analysts noted that the Sensex found critical support at the 80,000 level, which helped trigger the rally.
- Sector Highlights:
- Financial services led the recovery, with Nifty Bank and Nifty Private Bank rising 0.8%, driven by ICICI Bank, HDFC Bank, and Kotak Mahindra.
- Telecom stocks surged, led by Bharti Airtel’s 4% jump after Jefferies included it in its top picks for Asia in 2025, citing earnings momentum from tariff hikes.
- IT stocks extended their rally, with the Nifty IT index hitting a fresh high of 46,088.90, buoyed by gains in HCLTech, Infosys, and TCS.
Meanwhile, the Nifty Metal index underperformed, slipping 0.7% due to concerns over the U.S. dollar’s strength and China’s economic uncertainty. Shares of Tata Steel and Vedanta dragged the index lower.
Broader Market Trends
While the benchmark indices posted solid gains, broader markets lagged. The BSE Midcap ended flat, while the BSE Smallcap fell 0.3%.
In individual stocks, Vodafone Idea rose nearly 2% after announcing an ambitious capital expenditure plan of ₹50,000–55,000 crore to enhance its 4G and 5G networks. Astra Microwave Products surged 2% after its JV secured a ₹256 crore order from the Defence Ministry.
Outlook for December and January
Kunal Rambhia, Fund Manager and Trading Strategist, projected the Nifty could reach 25,500–26,000 levels in the coming weeks, driven by a pre-budget rally in January. Analysts expect sideways movement with a positive bias, leading to potential new highs.
Top Performers and Laggards
Top gainers included Bharti Airtel, Kotak Mahindra, ITC, HUL, and UltraTech, with gains between 2–4%. On the losing end, Shriram Finance, Tata Steel, Hindalco, and JSW Steel dropped 1–3%.
Global and Domestic Factors at Play
The rebound mirrored broader market volatility:
- A stronger dollar and rising U.S. Treasury yields weighed on Asian markets.
- India’s rupee hit a record low, adding pressure from foreign investor outflows.
- CPI inflation eased to 5.48% in November, but concerns over food prices may delay interest rate cuts by the RBI.
The market’s resilience underscores robust investor sentiment despite global headwinds.
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