Barometers extend gains for 2nd day; Nifty settles above 25,650 mark

The domestic equity benchmarks ended with moderate gains today, gaining for second day in a row, supported by sustained buying in IT and auto shares. The Sensex and Nifty started the day on a weak note and later moved into a consolidation phase after October?s strong rally, as some financial stocks came under pressure. Volatility stayed high ahead of the Nifty 50?s weekly derivatives expiry, with investors remaining cautious due to mixed global trends and sector rotation. The Nifty settled above the 25,650 mark.

The barometer index, the S&P BSE Sensex added 335.97 points or 0.40% to 83,871.32. The Nifty 50 index rose 120.60 points or 0.47% to 25,694.95. In two consecutive trading sessions, the Sensex rose 0.78% while the Nifty added 0.79%.

In the broader market, the S&P BSE Mid-Cap index rose 0.20% and the S&P BSE Small-Cap index fell 0.09%. The market breadth was negative.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 1.54% to 12.49.

Among the sectoral indices, the Nifty IT index (up 1.20%), the Nifty Auto index (up 1.07%) and the Nifty Metal index (up 0.71%) outperformed the Nifty 50 index.

Meanwhile, the Nifty PSU Bank index (down 0.39%), the Nifty Realty index (down 0.16%) and the Nifty Financial Services index (down 0.12%) underperformed the Nifty 50 index.

US-India Trade Deal:

Hints of a potential trade breakthrough with the US emerged from the White House on Monday as President Donald Trump reportedly said that Washington and New Delhi are moving closer to finalising a new trade agreement, adding that the US would eventually bring down tariffs on India. Trump's remarks came during the swearing-in ceremony of Sergio Gor, the new US Ambassador to India, at the Oval Office.

We?re making a deal with India. Much different than we had. Right now they don?t love me but they will love us again. We?re getting a fair deal. They?re very good negotiators, so Sergio, you will have to take a look at that. I think we?re pretty close to doing a deal that is good for everybody, the President reportedly said during the ceremony.

Speaking to reporters later, Trump reportedly responded to questions on whether the US would consider lowering tariffs on Indian imports. ?Well, right now, the tariffs are very high on India because of the Russian oil, and they?ve stopped doing the Russian oil. It?s been reduced very substantially. Yeah, we?re going to be bringing the tariffs down. At some point, we?re going to be bringing them down,? he reportedly stated.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.02% to 6.491 from the previous close of 6.490.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 88.5750 compared with its close of 88.7300 during the previous trading session.

MCX Gold futures for 5 December 2025 settlement rose 0.68% to Rs 124,818.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.03% to 99.66.

The United States 10-year bond yield advanced 0.17% to 4.118.

In the commodities market, Brent crude for December 2025 settlement rose 34 cents or 0.53% to $64.40 a barrel.

Global Markets:

European and Asian markets advanced as hopes for an end to the U.S. government shutdown increased.

The Senate passed legislation on Monday night to end the nation?s longest government shutdown, after a critical splinter group of Democrats joined with Republicans and backed a spending package that omitted the chief concession their party had spent weeks demanding.

The 60-to-40 vote, on Day 41 of the shutdown, signaled a break in the gridlock that has shuttered the government for weeks, leaving hundreds of thousands of federal workers furloughed, millions of Americans at risk of losing food assistance, and millions more facing air-travel disruptions.

Shares of Japanese financial conglomerate Orix edged higher on Tuesday after the company announced a partnership with Qatar?s sovereign wealth fund, Qatar Investment Authority, to launch a $2.5 billion private equity fund.

The fund will invest in Japanese companies, ?primarily targeting business succession, privatization of listed companies, and carve-outs,? valued at least 30 billion yen (about $200 million), Orix said in a press release. Orix and QIA will contribute 60% and 40%, respectively.

On Wall Street, the US benchmarks rose Monday after the White House expressed support for the bipartisan deal to end the shutdown?a key development that makes it likely the government will reopen within days. Separately, President Donald Trump also floated the idea of paying a $2,000 tariff ?dividend? to US citizens.

The Dow Jones Industrial Average climbed 381.53 points, or 0.81%, to end at 47,368.63. The S&P 500 gained 1.54% to settle at 6,832.43, while the Nasdaq Composite advanced 2.27% to finish at 23,527.17.

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