The Aryavarth Express
New Delhi: Indian equity markets ended higher on Thursday after three straight sessions of losses, supported by gains in auto, metal, and pharma stocks. The recovery came despite continued weakness in the rupee and caution in global markets.
The Sensex closed at 84,818.13, up 426.86 points (0.51%), while the Nifty settled at 25,898.55, rising 140.55 points (0.55%).
Markets had declined over the previous three sessions amid foreign fund outflows and investor caution ahead of the U.S. Federal Reserve’s policy decision. The Fed on Wednesday cut its benchmark rate by 25 basis points, citing increasing risks to employment and moderate economic growth.
Experts React to Market Trend
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the Fed’s rate cut is positive but unlikely to significantly move Indian equities in the short term.
“Persistent FII selling, heavy IPO supply, and weak earnings over the past six quarters continue to weigh on the market. However, earnings growth is expected to improve, which could drive a positive turnaround in 2026,” he said.
He added that IPO activity is likely to cool next year as “irrational pricing” becomes more evident, creating better opportunities for long-term investors.
Ajit Mishra, SVP, Research, Religare Broking, noted that strong domestic equity inflows supported sentiment in November, even as rupee weakness limited gains.
Ponmudi R, CEO of Enrich Money, said markets rose on Thursday as the Fed’s expected rate cut boosted sentiment.
“However, the rally was capped by the rupee hitting a fresh record low and renewed concerns over delays in India–U.S. trade negotiations. Weak cues from Asian markets and a sell-off in U.S. futures, triggered by a sharp drop in Oracle shares, also kept investors cautious,” he said.
Vinod Nair, Head of Research at Geojit, said Indian markets broadly rebounded in line with the Fed’s policy move despite persistent U.S. inflation.
Ovas Bakshi, Head of Retail Sales at Kotak Mahindra AMC, highlighted strong mutual fund inflows, with equity inflows rising 21% in November to ₹29,911 crore.
“Flexicap funds attracted the most inflows at ₹8,135 crore, followed by large & midcap, midcap, and smallcap categories,” he said, noting slower inflows into sectoral and thematic funds.
Hybrid funds (excluding arbitrage) recorded inflows of ₹9,100 crore, while multi-asset funds continued to gain traction.
Rupee Under Pressure
The Indian rupee hit a new all-time low of ₹90.53 per U.S. dollar on Thursday, continuing a multi-week decline. The currency had breached the ₹90 mark just last week, driven by global dollar strength and persistent foreign outflows.
