Mumbai Stock Market Rebounds: Sensex and Nifty Surge Amid Global Optimism

The Mumbai stock market experienced a significant rebound on Friday, with the Sensex and Nifty indices rising after four days of losses. This surge was fueled by positive global market trends and lower-than-expected US inflation data, which has led to increased expectations for interest rate cuts by the Federal Reserve. Key stocks such as Bharat Electronics and Reliance Industries saw notable gains, while some firms faced declines. The overall investor sentiment remained optimistic, supported by fresh foreign investments and a recovery in the Indian rupee against the US dollar. This article delves into the details of the market's performance and the factors influencing these changes.

By Narendra Chaudhary Dec 19, 2025, 20:24 IST

Market Recovery in Mumbai

Mumbai: After experiencing four consecutive days of losses, the equity benchmark indices, Sensex and Nifty, experienced a significant rebound on Friday, buoyed by a rally in global markets. This surge was largely attributed to lower-than-anticipated US consumer price inflation data for November, which has heightened expectations for potential interest rate reductions by the Federal Reserve.

Additionally, an influx of foreign investments contributed to the upward momentum in the equity markets.

The BSE Sensex, comprising 30 shares, rose by 447.55 points, or 0.53%, closing at 84,929.36. At its peak during the day, it reached 85,067.50, marking an increase of 585.69 points or 0.69%.

Similarly, the NSE Nifty, which includes 50 shares, climbed 150.85 points, or 0.58%, to finish at 25,966.40.

Among the top gainers in the Sensex were Bharat Electronics, Power Grid, Tata Motors Passenger Vehicles, Asian Paints, Reliance Industries, and Bajaj Finserv.

Conversely, HCL Tech, Kotak Mahindra Bank, ICICI Bank, and Sun Pharma faced declines.

Asian markets also showed positive trends, with South Korea's Kospi, Japan's Nikkei 225, Shanghai's SSE Composite, and Hong Kong's Hang Seng all closing higher.

European equity markets were also on the rise, following a positive close in US markets on Thursday.

"Investor sentiment remained optimistic, bolstered by favorable global indicators. The renewed hope for monetary easing by the US Federal Reserve, following the lower-than-expected inflation data for November, has enhanced global risk appetite," stated Ponmudi R, CEO of Enrich Money, a trading and wealth technology firm.

Foreign Institutional Investors (FIIs) purchased equities worth Rs 595.78 crore on Thursday, as per exchange data, while Domestic Institutional Investors (DIIs) acquired stocks valued at Rs 2,700.36 crore in the previous trading session.

In commodity markets, Brent crude oil, the global benchmark, saw a slight decline of 0.40%, settling at USD 59.58 per barrel.

On Thursday, the Sensex had logged its fourth consecutive day of decline, dropping 77.84 points or 0.09% to close at 84,481.81 in a volatile trading session, while the Nifty ended nearly flat, down by 3 points or 0.01% to 25,815.55.