By Vineet Kumar 
Sensex Crosses 81k, Nifty Breaches 24,500 as Defence, IT Lead Market Surge
The Indian stock markets witnessed another stellar session on December 4, with the Sensex reclaiming the 81,000-mark and the Nifty rallying past 24,500. Bullish sentiment prevailed as gains in defence, IT, and PSU banks lifted the indices for the fourth consecutive session. Mid-cap and small-cap stocks continued their winning streak, outperforming the benchmarks yet again.
Market Highlights:
Sensex and Nifty Update:
At 10:15 am, the Sensex was up 330.7 points (0.4%) at 81,172.48, while the Nifty gained 89.3 points (0.36%) to hit 24,545.
Market breadth remained robust with 2,289 stocks advancing, 683 declining, and 106 unchanged.
Defence Stocks Rally:
Stocks like HAL, Bharat Dynamics, and BEL surged up to 5%, supported by the Defence Acquisition Council’s (DAC) approval of capital acquisition proposals worth ₹21,772 crore. These stocks have rebounded significantly, gaining 20%-30% from recent lows.
IT Sector Leads the Charge:
The Nifty IT index climbed 1%, driven by heavyweights like TCS, Infosys, Tech Mahindra, and Wipro, with the latter gaining 2% on its cybersecurity partnership announcement with Netskope.
Mid and Small Caps Outperform:
The mid-cap index rose 0.6%, while the small-cap index added 0.7%, marking the ninth session of outperformance. Analysts credit this to sustained retail investor interest and a focus on quality picks.
Institutional Activity:
In a positive turn, foreign institutional investors (FIIs) were net buyers, pumping in ₹3,664 crore, while domestic institutional investors (DIIs) sold ₹251 crore worth of equities on December 3.
Stock-Specific Moves:
Zomato gained 2% as CLSA issued a ‘buy’ rating, citing its dominant position in quick commerce.
Swiggy, a privately-held competitor, also saw increased activity, reporting a 30% revenue jump in Q2, with its valuation reflecting optimism.
PSU banks, including SBI, HDFC Bank, and Kotak Mahindra Bank, gained 0.7%, riding pre-RBI monetary policy meeting optimism.
Technical Outlook:
Nifty Levels:
Analysts suggest a decisive close above 24,500 could propel the index towards 24,800 and 25,000 in upcoming sessions. Key support levels are pegged at 24,000 and 23,900.
The RSI at 55.7 indicates positive momentum.
Bank Nifty:
Breaking out of its consolidation, the Bank Nifty closed above 52,600, with immediate support at 52,400. This makes dips a buying opportunity for positional trades.
Expert Take:
Deepak Jasani from HDFC Securities observed, “While partial profit-booking might cap gains, the undertone remains positive, supported by reduced FII selling.”
Siddhartha Khemka of Motilal Oswal added, “The market is catching up with global peers. Optimism around government spending and a possible CRR cut by the RBI is keeping sentiment buoyant.”
Top Gainers and Losers:
Top Gainers: BEL, HDFC Life, SBI Life, L&T, and HDFC Bank.
Top Losers: Shriram Finance, Bharti Airtel, ICICI Bank, Reliance Industries, and Tata Motors.
As markets await the RBI’s interest rate decision later this week, traders remain optimistic about the policy commentary amid India’s recovery. The week ahead could hold pivotal trends for the markets.
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