Driven by a strong rally in the metal counters, the Indian stock market stayed firm for the second session on Friday, December 12, pushing the key front-line indices to settle above key levels.
The Nifty 50 closed the session 124 points, or 0.48%, higher, reclaiming the 26,000 mark at 26,022, while the S&P BSE Sensex finished at 85,206, up 388 points, or 0.46%, from the previous close. The broader markets also shone, with the Nifty Midcap 100 and Nifty Smallcap 100 indices rallying 1.18% and 1%, respectively.
Investor sentiment was buoyed by a drop in the US Dollar index, coupled with expectations of an imminent trade deal between India and the US, and hopes of an earnings recovery in the second half of FY26, all supporting the market despite overseas investors remaining net sellers in Indian equities.
Nifty metal tops sectoral gains
Looking at sector-wise performance, the continued rally in both base and precious metals, along with weakness in the US dollar, led to strong demand for metal stocks, causing all the constituents of the Nifty Metal index to close in the green and driving the index up by 2.61%, making it the top sectoral performer.
The Nifty Realty index also closed with a solid gain of 1.47%, while the Nifty Consumer Durables, Nifty Oil & Gas, Nifty Chemicals, and Nifty Auto indices all rallied between 0.60% and 1.44%. The Nifty FMCG was the only laggard, but with a modest 0.20% drop.
Currency woes continue
Though the markets recovered sharply from recent lows, the pain in the Indian rupee continues, with the local currency reaching another all-time low of 90.55 against the US dollar, slipping past its previous record low of 90.4675 hit on December 11.
The rupee is Asia’s worst performer this year, having fallen nearly 6% against the dollar year-to-date, as steep US tariffs of up to 50% on Indian goods hurt exports to its biggest market, while also diminishing the appeal of local equities for foreign investors.
Beatdown stocks rebound, Transformers & Rectifiers led the charge
Following a sharp correction in recent sessions, Transformers & Rectifiers shares recovered strongly, rising 18.2% to ₹282 apiece, emerging as the top gainer among Nifty 500 stocks. Anant Raj shares also rebounded 9% to ₹550.65 apiece after losing 32% over the past two months.
Meanwhile, all major metal stocks closed higher, led by Hindustan Zinc, which gained 7% to ₹560 apiece, followed by Hindustan Copper, National Aluminium Company, GMDC, Sarda Energy & Minerals, NMDC, Hindalco Industries, Tata Steel, and Adani Power, all of which rallied between 3% and 7%.
