Nifty, Sensex Extend Gains To Third Week As Tata Motors, Axis Bank Lead: Market Wrap

The NSE Nifty 50 and BSE Sensex ended Friday's session with marginal loss as HDFC Bank Ltd. and Reliance Industries Ltd.'s share prices dragged. The NSE Nifty 50 posted the biggest weekly gains since early June.

The Nifty 50 ended 39.05 points or 0.16% down at 24,669.35, and the Sensex ended 56.74 points or 0.07% down at 81,709.12.

The Nifty 50 fell as much as 0.36% to 24,620.50, and the Sensex fell 0.32% to 81,506.19 intraday. The indices fell sharply after the Reserve Bank of India kept the repo rate unchanged at 6.5% and maintained a neutral stance. The central bank reduced the GDP forecast for financial year 2025, while it increased the projection for inflation.

Following the Monetary Policy Committee's announcement to cut Cash Reserve Ratio, the NSE Nifty Bank rose 0.49% to the day's high of 53,868.50. The central bank cut the CRR by 50 basis points to 4.00%. RBI will cut CRR in two tranches in fortnights beginning Dec. 14 and Dec. 28 at 25 bps each.

The CRR cut to result in liquidity increase of Rs 1.16 lakh crore.

Shares of HDFC Bank Ltd., Reliance Industries Ltd., Infosys Ltd., ICICI Bank Ltd., and Bharti Airtel Ltd. weighed on the NSE Nifty 50.

While those of Tata Motors Ltd., Axis Bank Ltd., Larsen & Toubro Ltd., ITC Ltd., and Bajaj Auto Ltd. added to the Nifty 50.

The NSE Nifty 50 posted the best gains on a weekly basis since June 7. It has risen 2.27% in the week ended on Dec. 6. The BSE Sensex gained 2.39% in the week ended on Dec. 6.

Broader indices outperformed. BSE Midcap closed 0.36% higher and BSE Smallcap ended 0.6% higher.

Five of the 21 sectoral indices on the BSE fell and 16 rose. BSE Metal rose the most.

Market breadth was skewed in the favour of buyers. As many as 2,401 stocks rose, 1,586 declined, and 101 remained unchanged on the BSE.

This week on NSE, 11 out of 12 sectors advanced and one declined. The NSE Nifty Realty rose the most, while the NSE Nifty FMCG sector declined the most.