Sensex settles 450 pts higher, Nifty ends near 26,050: Positive global cues among key factors behind market rise

Stock market today: Sensex, Nifty rise in December 12 trade. 

The equity benchmarks traded higher on Friday, extending gains from the previous session, supported by firm global cues and improved risk sentiment after the US Federal Reserve cut interest rates.

The Sensex settled 449.52 points or 0.53 percent at 85,267.66, while the broader Nifty advanced to 26,046.95, up 148.40 points or 0.57 percent.

Hindalco Industries, Larsen & Toubro and Tata Steel were among the top gainers in the Nifty50 pack, rising up to 2 percent, while Hindustan Unilever and Infosys were among the major laggards, declining up to 2 percent. Market breadth remained positive as about 2324 shares advanced, 1002 shares declined and 145 shares remained unchanged.

Key factors behind market rise

1) Positive global cues: Asian indices, including South Korea’s Kospi, Japan’s Nikkei 225 and Hong Kong’s Hang Seng, traded in the green. US markets also ended mostly higher overnight, providing support to domestic equities.

2) Modi–Trump talks: Prime Minister Narendra Modi on Thursday said he spoke with US President Donald Trump, adding that they reviewed progress in bilateral ties and discussed regional and international issues. The interaction, described as "warm and engaging", came amid ongoing trade concerns and offered some reassurance to investors tracking developments on that front.

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3) Volatility index eases: India’s volatility index declined 2.5 percent to 10.14. A lower VIX typically signals reduced market uncertainty, often encouraging traders to take on more risk and aiding overall sentiment.

Technical view

Anand James, Chief Market Strategist at Geojit Investments, said, “While the swing higher yesterday from the 25,690 vicinity was on anticipated lines, the pause on approach to 25,900 has retained some doubts on whether we have got back on to a strong upside trajectory again. We will begin the day with expectations of 26,190. Inability to push beyond and float above 25,977, or a direct fall back below 25,854, could signal loss in upside momentum.”