Sensex Today Rallies 905 Points; Nifty Above 22,900

The benchmark indices opened on a positive note, maintained their gains throughout the session and closed higher.

Indian equity benchmark indices, the Sensex and Nifty 50, traded higher on Thursday, supported by gains in FMCG and PSU bank stocks.

At the closing bell, the BSE Sensex  closed 905 points higher (up 1.2%)

Meanwhile, the NSE Nifty closed 238 points higher (up 1%)

Adani Ports, Kotak Mahindra, Eternal are the top gainers today.

Trent, Tech Mahindra, HDFC Bank on the other hand, were among the top losers today.

The GIFT Nifty was trading at 23,035 with 302 points higher at the time of writing.

The BSE 150 Midcap index is trading 0.6% higher and the BSE 250 SmallCap index is trading 0.% higher.

Sectoral indices traded positive today, with PSU ban sector and realty sector witnessed buying.

5 reasons why Indian stock markets are rising:

#1 Fed Holds Rates

The US Federal Reserve kept its key interest rate unchanged at around 3.9% despite persistent inflation. Markets expect a possible 0.25% rate hike at its December 8-9 meeting, with investors pricing in an 85% probability.

#2 Rising Hopes for LTCG Tax Cuts

Indian markets gained on hopes that the government may reduce long-term capital gains (LTCG) tax and review securities transaction tax (STT). A potential tax cut could attract foreign investors back to Indian equities, particularly benefiting banks, energy companies and other large-cap stocks.

#3 FII Buying

Foreign institutional investors (FIIs) turned net buyers of Indian equities, although a sustained reversal in foreign investor selling is yet to be confirmed.

#4 Rupee Gains

The Indian rupee strengthened by 11 paise to 95.17 against the US dollar, supported by a weaker dollar following the Fed's policy announcement. However, high crude oil prices, continued dollar demand and expectations of a possible US rate hike could limit further gains.

#5 Bond Yields Cool Down

US Treasury yields declined, with the 10-year yield falling below 5%, the 30-year yield easing to 5.3% and the 2-year yield dropping to 4.69%. Lower bond yields can make equities relatively more attractive to investors, potentially supporting stock markets.

The rupee is trading at Rs 95.2 against the US$.

Gold prices for the latest contract on MCX are trading lower at Rs 1,44,130 per 10 grams.

Meanwhile, silver prices were trading 0.8% lower at 1,95,075 per 1 kg.

OnEMI Technology Q2 FY27 Results

Shares of OnEMI Technology came into focus after the company reported its Q2 FY27 results.

For the September quarter, the company reported a 100% Y-o-Y increase in PAT to Rs 1,251.2 million, compared with Rs 624 million (m) in the corresponding quarter last year. Revenue from operations grew 45% Y-o-Y to Rs 7,318.1 m from Rs 5,056.9 m in the year-ago quarter.

AUM expanded 68% Y-o-Y to Rs 93,170 m during the September quarter.

Asset quality improved, with GNPA declining 75 bps Y-o-Y and 7 bps Q-o-Q to 2.18% at the end of the September quarter. NNPA stood at 0.34%, down 2 bps Q-o-Q.

For FY27, the company expects AUM growth of over 60% and a reduction in credit costs of more than 15%. It has guided for GNPA below 2.25% and RoAE above 20%.

Meesho Q2 FY27 Results

Shares of Meesho came into focus after the company reported its Q2 FY27 results.

During Q2FY27, Meesho narrowed its loss to Rs 1,324 m from Rs 4,113 m in the corresponding quarter last year. Consolidated revenue from operations grew 34% Y-o-Y to Rs 41,315 m, compared with Rs 30,736 m in the year-ago period. Adjusted EBITDA loss stood at Rs 1,700 m, with a margin of -1.3% of net merchandise value (NMV).

NMV increased 23% Y-o-Y to Rs 129,110 m, while placed orders grew 17% to 819 m.

Annual transacting users (ATUs) rose 21% Y-o-Y to 284 m in Q2FY27, while annual purchase frequency increased 7% to 10.4 transactions per user. First-time buyers grew 16% Q-o-Q. The company also reported 33% Y-o-Y growth in NMV during the 90 days preceding Dussehra.

Meesho Mall, which hosts approximately 1,800 brands, recorded 81% Y-o-Y growth in NMV, with growth reaching 89% in Tier 3 and smaller cities. Contribution margin expanded to 6% of NMV from 4.6% in the previous quarter, supported by logistics efficiencies and improved platform monetisation.

Marketplace revenue from operations grew 34% Y-o-Y to Rs 41,200 m, driven by stronger advertising monetisation and improved matching of seller demand with consumer intent, the company said in an exchange filing.