Sensex rallies 638 pts, Nifty settles above 26,000 on foreign fund inflows, firm global trends

Mumbai, Dec 22 (PTI) Benchmark stock indices Sensex and Nifty surged nearly 1 per cent on Monday as investor sentiment remained positive amid foreign fund inflows and a rally in global markets on expectations of further monetary policy easing by the US Federal Reserve.

Building on the previous session's rally, the 30-share BSE Sensex jumped 638.12 points or 0.75 per cent to settle at 85,567.48. During the day, it surged 671.97 points or 0.79 per cent to 85,601.33.

The 50-share NSE Nifty climbed 206 points or 0.79 per cent to close above the 26,000 mark at 26,172.40.

From the 30-Sensex firms, Trent, Infosys, Bharti Airtel, Tech Mahindra, Bharat Electronics and Maruti were among the biggest gainers.

However, State Bank of India, Kotak Mahindra Bank, Larsen & Toubro and Titan were the laggards.

In Asian markets, South Korea's Kospi jumped over 2 per cent, while Japan's Nikkei 225 index climbed nearly 2 per cent. Shanghai's SSE Composite index and Hong Kong's Hang Seng index also settled in positive territory.

European markets were trading on a mixed note. US markets ended higher on Friday.

"Indian markets extended their year-end rally, supported by strong liquidity and global cues, as expectations of further Fed easing in 2026 continue to underpin growth. FIIs turned net buyers, reinforcing the positive tone, with IT and metals leading gains," Vinod Nair, Head of Research, Geojit Investments Limited, said.

Foreign Institutional Investors (FIIs) bought equities worth Rs 1,830.89 crore on Friday, according to exchange data. Domestic Institutional Investors (DIIs) also bought equities worth Rs 5,722.89 crore in the previous trade.

"A stabilising USD-INR exchange rate, coupled with data showing foreign portfolio investors turning net buyers of domestic equities over the past few sessions, triggered broad-based buying and short covering across derivative segments.

"Global risk appetite also remained firm, supported by expectations of further monetary policy easing by the US Federal Reserve, which helped sustain the risk-on momentum across global markets," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

Brent crude, the global oil benchmark, climbed 0.86 per cent to USD 60.99 per barrel.

On Friday, the Sensex jumped 447.55 points or 0.53 per cent to settle at 84,929.36. The Nifty climbed 150.85 points or 0.58 per cent to 25,966.40. PTI SUM SUM MR