The S&P BSE Sensex posted a resilient weekly performance, recovering from early-week weakness to close at 85,712.37 on December 5. After dipping below 85,000 mid-week, broader market strength, firm global cues, and selective buying in banks and large-cap stocks helped the index stabilize. The rebound came as investors continued to weigh inflation trends, corporate growth signals, and the outlook for interest rates in India heading into 2025.

Stronger Domestic Sentiment Supports Mid-Week Reversal

The Sensex opened the week on a softer note, slipping toward its five-day low of 84,750 as investors reacted cautiously to mixed global conditions and concerns over short-term valuations. However, sentiment improved as domestic macro indicators—including industrial activity signals and consumption trends—showed early signs of steadying. Mid-cap and large-cap stocks participated in the reversal, suggesting a broad-based appetite for risk. By Thursday, institutional inflows and reduced selling pressure helped the index climb back above 85,250, setting the stage for a stronger finish.

Financials and Consumer Stocks Lead the Late-Week Upside

Sector performance played a crucial role in the Sensex’s weekly trajectory. Banking, financial services, and consumer-focused companies saw renewed interest as investors positioned ahead of upcoming economic data releases. The recovery in these sectors offset weakness in energy and select technology names, which moved more cautiously amid global market consolidation. The index’s daily range of 85,053.00–85,553.51 on Friday reflected the intraday resilience that characterized the latter half of the week, with buyers consistently stepping in near support levels.

Global Market Stability Enhances Local Market Confidence

Improving sentiment across major global indices—such as the S&P 500, Nasdaq, and Dow Jones—provided a supportive backdrop for Indian equities. A decline in volatility across global markets and stable U.S. Treasury yields boosted appetite for emerging-market assets. For the Sensex, this translated into steady foreign investor participation as risk conditions improved. However, the index’s proximity to its 52-week high of 86,159.02 also kept traders cautious, with some opting to lock in profits during intraday rallies.

The upcoming week will test whether the S&P BSE Sensex can build on its late-week momentum and push decisively toward its record highs. Investors will closely watch India’s upcoming inflation print, global macro releases, and any shifts in U.S. monetary expectations. While the index’s recovery signals resilience, risks such as uneven sector performance, global demand uncertainties, and currency fluctuations remain in play. Sustained strength in institutional flows and supportive macro data will be key in determining whether the Sensex can extend this upward trajectory into year-end trading.