Indian stocks experienced a significant rally on Thursday, spurred by unexpectedly weak data from the U.S. private sector concerning employment and service sector activity. This development has heightened optimism regarding future interest rate trends. Market participants are now anticipating a third consecutive rate cut to be announced during the U.S. Federal Reserve's meeting scheduled for December 17-18.
Investor confidence is further buoyed by the recent trend of foreign institutional investors becoming net buyers in Indian equities, coupled with expectations of a dovish monetary policy from the Reserve Bank of India (RBI).
The key benchmark, the S&P BSE Sensex, surged by 809.53 points, or 1.00%, closing at 81,765.86, marking its fifth consecutive day of gains. Similarly, the broader NSE Nifty index ended the session at 24,708.50, an increase of 240.05 points or 0.98% from its previous close.
The technology sector led the charge, with IT giants TCS and Infosys both posting gains exceeding 2%. Other notable performers included Dr. Reddy's Laboratories, Titan Company, and Trent, each advancing between 2-3%. Meanwhile, NTPC, Bajaj Auto, HDFC Life, and SBI Life experienced declines of around 1% each.
