Closing Bell: Market Ends Sharply Higher, Sensex & Nifty Post Gains For 5th Straight Day; Infosys LeadsClosing

The Indian stock market maintained its upward trajectory for the fifth consecutive session on Thursday, December 5, closing higher amid intra-day volatility. Benchmark indices, Sensex and Nifty 50 posted gains of 1% each, with heavyweights like Infosys, ICICI Bank, TCS, Bharti Airtel, and Reliance Industries leading the charge.

The Sensex climbed 810 points to settle at 81,766, while the Nifty 50 gained 241 points, closing at 24,708-its highest level since October 21. Both indices showcased resilience, shrugging off morning session weakness. The Sensex rose by a staggering 1,850 points from its intra-day low, and the Nifty breached the 24,850 mark during the day before trimming some gains.

In the broader market, midcap and smallcap indices also ended in the green, although they underperformed the benchmark indices. The BSE Midcap index rose 329 points (0.27%) to 58,442, while the Smallcap index inched up 0.16%.

The sectoral performance underscored investor optimism in IT, banking, and financial services. IT Index jumped 2% to hit a record high, with Infosys and TCS among the top gainers. Nifty Bank & Financial Services gained nearly 1%, driven by renewed confidence in the sector. Oil & Gas and Auto sector indices also recorded gains of almost 1%.

On the flip side, Realty and PSU Bank indices faced selling pressure, ending marginally lower due to profit booking.

Zomato & Swiggy both stocks surged up to 5%, hitting record highs. Indus Towers gained nearly 2% after Vodafone Plc sold a 3% stake in the company. IGL jumped 6% following an announcement about its first-ever bonus issue to be considered on December 10.

HEG witnessed profit booking, falling 6% from its day's highs after equity worth 11% changed hands. Juniper Hotels rose nearly 4% as CLSA initiated a buy call on the stock. Meanwhile, insurance stocks reversed their gains from Wednesday, with SBI Life and HDFC Life topping the list of Nifty losers.

Investor wealth grew significantly as the overall market capitalisation of firms listed on the BSE increased by Rs 2.5 lakh crore to Rs 458.2 lakh crore, up from Rs 455.7 lakh crore in the previous session.

The market breadth remained balanced, with the advance-decline ratio at 1:1, indicating an even split between advancing and declining stocks.

Despite the bullish momentum, December has witnessed heightened volatility in the market. Experts caution that while the indices are riding high on optimism, uncertainties around global economic conditions and profit booking in certain sectors may keep traders on edge.

With the RBI's monetary policy announcement on Friday, market participants will watch for signals on liquidity measures and interest rate trajectories. Additionally, stock-specific movements driven by earnings expectations and sectoral realignment are likely to continue dominating the market narrative.