Bulls fully took charge of the Indian stock market in Friday’s session, December 19, as risk-on sentiment improved globally following lower-than-expected US November inflation data. The data reinforced expectations of further interest-rate cuts by the US Federal Reserve, while chipmaker Micron’s blowout forecast eased some worries about tech sector valuations.
The Nifty 50 rallied 0.56% to settle at 25,961, just shy of the psychological 26,000 mark, while the S&P BSE Sensex advanced 0.52% to 84,922. The broader market also closed with sharp gains, as both the Nifty Midcap 100 and Nifty Smallcap 100 strengthened 1.2% and 1.34%, respectively.
All major sectors advanced, led by Nifty Realty, which surged 1.9%, followed by Nifty Chemicals, Nifty Auto, Nifty Oil & Gas, and Nifty Pharma, all rising between 1% and 1.7%.
The rally on Dalal Street came following the release of US inflation data, which increased less than expected in November, showing a 2.7% rise in prices compared to the same month a year ago. The year-over-year price growth reflects a notable slowdown from the 3% surge in September.
The tamer-than-expected inflation data has renewed confidence that the Federal Reserve will continue cutting interest rates next year. Traders now see a 58% chance of a dovish policy move by the Fed in March, according to CME’s FedWatch Tool.
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