Why did Indian markets rally on Monday?

Indian markets rallied on Monday due to strong liquidity, positive global cues, and expectations of further US Federal Reserve rate cuts.

What caused gold prices to hit a record high?

Gold prices hit a record high driven by rate-cut expectations, robust central bank buying, sustained ETF inflows, and heightened global tensions.

Which sectors led the gains on the Indian stock market?

IT and metal stocks led the gains, with the defence index also outperforming significantly on Monday.

Home / Business and Economy / Indian Markets Soar on Year-End Rally, Gold Hits Record High

Indian Markets Soar on Year-End Rally, Gold Hits Record High

22 Dec

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Summary

Domestic markets extended gains for a second session on Monday.
Gold prices hit a record high, fueled by rate-cut expectations.
Sensex rose 0.75% and Nifty 50 increased by 0.79%.

Indian Markets Soar on Year-End Rally, Gold Hits Record High

Indian domestic markets extended their year-end rally for a second trading session on Monday, driven by robust liquidity conditions and favorable global sentiment. Expectations of further US Federal Reserve easing in 2026 bolstered risk appetite, with Foreign Institutional Investors (FIIs) turning net buyers, particularly in IT and metal stocks. Gold prices reached an all-time high, propelled by anticipated rate cuts, significant central bank purchases, and sustained ETF inflows, alongside escalating global tensions.

The BSE Sensex concluded the day 638.12 points higher at 85,567.48, while the Nifty 50 gained 206 points to close at 26,172.40. Despite the market's upward movement, India VIX saw a 9.6% rise, indicating increased caution. The broader market segments, including Nifty midcap 100 and Nifty smallcap, also outperformed, with most sectoral indices closing in positive territory, except for consumer durables. Defence stocks notably rallied over 3%.