Indian equity benchmarks continued their upward trajectory for a third consecutive session on December 3, 2024. BSE Sensex climbed 450 points (0.56%) to settle at 80,699.04, while the Nifty50 rose 126 points (0.52%) to 24,402, buoyed by robust performance in metal and financial stocks.

Metal and banking stocks lead the rally

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Gains were driven by optimism from Asian markets and heightened expectations of a 25-basis-point rate cut by the US Federal Reserve.Top gainers included Adani Ports, JSW Steel, Tata Steel, HDFC Bank, and SBI, with increases of up to three per cent. On the sectoral front, the Nifty PSU index surged 2.43%, led by Union Bank, Bank of Baroda, and Canara Bank.

Swiggy, Solar Industries among key movers

Solar Industries rallied 9.5% after securing export orders worth Rs 2,039 crore for defence products. However, the stock trimmed gains and was up 0.75% by mid-morning. Swiggy shares also gained 9.4% ahead of its Q2 results but later pared gains to end up 2.97%.

Cigarette stocks hit by GST hike proposal

Shares of ITC and peers like Godfrey Phillips fell sharply following a Group of Ministers' recommendation to hike GST on cigarettes and other sin goods from twenty-eight per cent to thirty-five per cent. ITC dropped three per cent to Rs 462.80, while Godfrey Phillips and VST Industries saw declines of 3.2% and 2.3%, respectively.

Mixed signals from FIIs and DIIs

Foreign Institutional Investors (FIIs) sold Rs 238 crore worth of equities on December 2, reflecting cautious sentiment. Meanwhile, Domestic Institutional Investors (DIIs) exhibited confidence, buying over Rs 3,588 crore.

Global cues and rupee movement

Globally, investors are monitoring U.S. JOLTS job openings data and Federal Reserve speeches for clues on interest rates. The Indian rupee, under pressure from foreign fund outflows, depreciated four paise to Rs 84.76 against the US dollar despite RBI intervention.

Outlook remains optimistic

Market sentiment is supported by expectations of domestic policy measures, including a potential CRR cut by the Reserve Bank of India. Analysts suggest Nifty50 could rally further if it breaks resistance at 24,350, with upside targets at 24,800 and 25,000.