India’s equity benchmarks closed higher on Thursday, December 4, though they retreated sharply from the day’s highs, but still managed to break a four-day losing streak.
A continued rise in tech stocks, along with a rebound in the realty and consumer goods sectors, provided much-needed support to the market.
The Nifty 50 gained 0.18% to 26,033, while the S&P Sensex closed 0.07% higher at 85,164. The broader markets ended mixed, with the Nifty Midcap 100 finishing flat and the Nifty Smallcap 100 falling 0.24%.
Tech stocks once again outperformed, as sustained weakness in the Indian rupee along with growing bets of a US Federal Reserve rate cut next week helped these counters shine even as the broader market remained volatile. The Nifty IT index gained another 1.41% to 38,360.
Real estate stocks, after a five-day decline, came under the bulls’ radar, lifting the Nifty Realty index by 0.54%. FMCG stocks also made a comeback, with the Nifty FMCG index rising 0.47% to 55,209, ending a three-day slide.
The sharp drop in the Indian rupee also boosted chemical stocks, pushing the Nifty Chemical index up 0.47%. Other key sectors such as Nifty Auto, Nifty Pharma, and Nifty Metal also closed with gains of up to 0.32%.
On the flip side, the Nifty Media index fell 1.45%, while the Nifty Consumer Durables and Nifty Oil & Gas indices also ended lower.
Investors remained cautious ahead of the RBI policy decision on Friday, with the Street expecting the central bank to maintain status quo following strong economic growth in the September quarter.