Indian equity markets staged a decisive comeback on Monday, December 22, extending their winning streak for the second consecutive session. Buoyed by a resurgence in technology stocks and renewed foreign investor interest, benchmark indices closed near their intraday highs, signaling strong momentum ahead of the holiday break.
Market Snapshot
| Index | Close | Change (Points) | Change (%) |
| Sensex | 85,567.48 | +638.12 | +0.75% |
| Nifty 50 | 26,172.40 | +206.00 | +0.79% |
| Bank Nifty | 59,304.00 | +185.00 | +0.31% |
Export to Sheets
The broader market reflected this optimism, with the Nifty Midcap 100 and Smallcap 100 indices outperforming the benchmarks, rising significantly as retail sentiment turned bullish.
Key Drivers of the Rally
1. The ‘IT’ Factor Information Technology stocks were the primary heavy lifters today. Tracking a rebound in US tech futures, domestic giants like Wipro and Infosys saw aggressive buying. Investors are seemingly positioning themselves for a favorable earnings season, betting that the worst of the global tech slowdown may be behind us.
2. Rupee Strengthens Below 90 The Indian Rupee (INR) provided much-needed relief to the macroeconomic picture, strengthening to trade at 89.65 against the US Dollar. The currency’s recovery from its recent lows has eased concerns regarding imported inflation and capital outflows, encouraging Foreign Institutional Investors (FIIs) to loosen their purse strings.
3. Defense & Shipbuilders Surge Beyond the index heavyweights, the defense and shipbuilding sectors witnessed massive traction. Cochin Shipyard surged over 7.6%, emerging as one of the day’s standout performers, driven by sustained order book visibility and sector-specific rotation.
4. FIIs Turn Net Buyers After a period of sustained selling, market data suggests a reversal in foreign flows. The improving global backdrop, coupled with India regaining favor in emerging market fund manager surveys relative to China, has sparked fresh inflows into large-cap Indian equities.
Top Movers
đ˘ Gainers
- Trent (+4.0%): Continued its upward trajectory, cementing its status as a consumption favorite.
- Shriram Finance (+3.9%): Saw strong accumulation, closing as one of the top Nifty gainers.
- Wipro (+3.0%) & Infosys (+2.3%): Led the charge for the IT index.
- Bharti Airtel (+2.4%): Gained on positive sectoral outlooks.
- Cochin Shipyard (+7.6%): Witnessed heavy volumes in the broader market.
đ´ Losers
- HDFC Life (-0.6%): Saw minor profit booking.
- SBI (-0.6%): Faced resistance despite the broader banking rally.
- Kotak Bank (-0.5%): Remained subdued in a buzzing market.
The Road Ahead
Technically, the Nifty 50 has convincingly breached the 26,150 resistance level. Analysts highlight that if the index sustains these levels, the short-term trend has shifted to “buy on dips,” with immediate targets shifting toward 26,300. The focus now shifts to the upcoming US macroeconomic data and the release of global central bank minutes, which will dictate the trend for the remainder of 2025.
Sources: The Economic Times, NSE India Live Market Data, ICICI Direct Market Updates.
VahishtaInvest 
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