Final Trade: Sensex gains for 2nd day, up 445 pts; Nifty closes above 24,250

The Indian stock market witnessed a second straight day of gains on Monday, December 2, as both benchmark indices ended the session on a high note. The Sensex closed 445 points higher at 80,232, while the Nifty 50 added 0.60%, finishing at 24,271. Investors seemed optimistic despite weak Q2FY25 GDP data, which hit a seven-quarter low.

Market Sentiment & Key Drivers

Experts attributed the rally to expectations of increased government spending in the second half of FY25, bolstering investor confidence. Analysts also anticipate that sluggish GDP growth will nudge the Reserve Bank of India (RBI) toward adopting stimulus measures in its upcoming monetary policy review on December 6.

The recovery was led by gains in blue-chip stocks, including Reliance Industries, HDFC Bank, Infosys, and Bharti Airtel. Additionally, cement stocks surged following reports of impending price hikes. UltraTech Cement and Grasim Industries led the pack, providing a substantial boost to the indices.

Sectoral Highlights: Realty Leads, PSU Banks Lag

Among sectoral indices, Nifty Realty emerged as the top performer, rising by 3.04%. Key contributors included:

• Godrej Properties (+4.5%)

• Prestige Estates (+4.1%)

• Phoenix Mills (+3.7%)

On the flip side, Nifty PSU Bank slipped by 0.2%, emerging as the worst performer, followed by a marginal decline of 0.05% in Nifty FMCG.

Mid & Small-Cap Outperformance

Broader market indices outshined the benchmarks, with the Nifty Midcap 100 gaining 1.11% to close at 57,016, and the Nifty Smallcap 100 adding 1.02% to settle at 18,841.

Outlook

As markets digest the weaker-than-expected GDP numbers, all eyes are on the RBI's December policy meeting. Investors are also watching potential triggers like government fiscal measures and pre-budget announcements, which could provide further momentum in the coming weeks.