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Indian Markets Soar on Year-End Rally, Gold Hits Record High
22 Dec, 2025
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 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%.
Looking ahead, investors are closely monitoring upcoming macroeconomic data, including UK Q3 GDP figures due on the same day, followed by US Q3 GDP and Consumer Confidence data the next day. Near-term market momentum is expected to be influenced by currency movements, FII flows, and global central bank signals. Key gainers on the Nifty 50 included Trent and Shriram Finance, while defence stocks like Cochin Shipyard saw significant jumps.
