Final Trade: Sensex up by 111 pts, Nifty settles above 24,450; PSU banks rally 8%, auto drags

Domestic stock markets extended their winning streak to a fourth consecutive session on December 4, marking the longest rally in two months. Gains in financial and insurance stocks boosted benchmarks ahead of the Reserve Bank of India's (RBI) policy review.

Key index performance

The Sensex edged up 11 points to close at 80,956, while the Nifty ended 10 points higher at 24,467. Broader markets outshone the benchmarks, with the Midcap index surging 603 points to 58,112 and the Nifty Bank climbing 571 points to 53,267.

Sectoral movers

HDFC Bank was the largest contributor to Nifty’s gains, supported by strong performances from insurance stocks. HDFC Life Insurance led the pack, rising 2.56 percent, followed by Max Financial, which gained nearly three percent.

Stock-specific highlights

• Bajaj Auto: Shares dipped three per cent after UBS downgraded the stock post a price cut announcement for its Freedom 125 model.

• Oberoi Realty: Hit a record high, gaining momentum after Nomura initiated coverage with a "buy" rating.

• Suzlon Energy: Added three per cent, extending its partnership with Jindal Renewables through a new project.

• Garden Reach Shipbuilders: Jumped three per cent after the Defence Acquisition Council approved procurements worth Rs 21,772 crore.

• Wonderla Holidays: Surged 10 per cent on strong demand for its Qualified Institutional Placement (QIP).

• Reliance Power: Hit a five per cent upper circuit as SECI withdrew a debarment notice.

• PNB Housing Finance: Gained three per cent on upbeat management commentary.

Broader market trends

Advancing stocks outpaced decliners with a three-to-two ratio, underscoring the positive sentiment in the broader market. The mid and small-cap segments continued to attract interest, with retail and high-net-worth investors focusing on quality stocks.

As the market anticipates the RBI's upcoming policy decision, investors remain optimistic about easing liquidity conditions, driven by possible monetary easing measures.