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Indian Markets Snap Losing Streak Amidst Global Cues
4 Dec
Summary
- Indian equity indices ended a four-day losing streak with modest gains.
- Fitch Ratings boosted India's FY26 GDP growth forecast to 7.4%.
- IT and FMCG stocks provided support, while broader markets underperformed.
Indian equity indices managed to break a four-day losing streak today, registering modest gains. However, investor sentiment remained fragile, influenced by a persistently weak rupee, consistent outflows from foreign institutional investors, and the impending Reserve Bank of India (RBI) policy announcement. Increased volatility was observed due to the weekly derivatives expiry, while elevated crude oil prices heightened concerns over import costs and inflation. Traders also closely watched the visit of Russian President Vladimir Putin.
The S&P BSE Sensex saw a slight increase of 158.51 points, closing at 85,265.32, while the Nifty 50 index added 47.75 points to reach 26,033.75. Strength in the IT and FMCG sectors provided support to the headline indices. Conversely, the broader market indices, including the S&P BSE Mid-Cap and Small-Cap, experienced declines, indicating a mixed market breadth with more advancing than declining stocks on the BSE.
In a significant development, Fitch Ratings revised India's GDP growth forecast for FY26 upward to 7.4%, from a previous projection of 6.9%. This upgrade reflects robust real income growth, strong consumer sentiment, and the positive impact of recent GST reforms. Despite this optimistic outlook, Fitch also highlighted external vulnerabilities and projected growth to moderate to 6.4% in FY27. The foreign exchange market saw the rupee edge lower against the dollar, trading around 89.9700.
