Sensex Rebounds Significantly Amidst Market Volatility

On December 13, the Indian stock markets experienced a strong recovery by noon, bouncing back from a notable dip earlier in the day. The Sensex managed to gain 29 points, reaching a total of 81,319 points. At the same time, the Nifty index decreased slightly by five points, settling at 24,543. The recovery was mainly driven by notable gains in the telecom, FMCG (Fast-Moving Consumer Goods), and automotive sectors, although overall market sentiment remained cautious among investors.

Despite this upward movement, market breadth showed weaknesses, with 1,138 stocks advancing while 2,219 stocks were in decline. The market faced volatility due to negative influences from Asian markets, leading to growing concerns surrounding a stronger dollar, rising U.S. Treasury yields, and a lagging Chinese economy. Additionally, renewed tensions in U.S.-China trade relations, along with uncertainties regarding Donald Trump's potential return to power, heightened the anxious sentiment in the markets.

Foreign institutional investors (FIIs) have notably increased their selling activities, liquidating Rs 4,572 crore worth of Indian equities over the past two days. Concurrently, U.S. Treasury yields have reached their highest levels for the year, dampening expectations for substantial Federal Reserve rate cuts in 2025.

On a more positive note, India's Consumer Price Index (CPI) inflation recorded a decrease to 5.48 percent in November, down from 6.21 percent in October. This drop in inflation has raised hopes for potential support through monetary policy. However, inflation still sits slightly above the Reserve Bank of India's target of five percent, which leaves the possibility for more significant rate cuts in question.

As the trading day continues, market participants are expected to keep a close watch on global market cues and domestic economic data, which could significantly influence market directions in the future.

Sensex, Nifty, Markets