Sensex, Nifty Rebound After Fed Cut; Rupee Hits New Low

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

By Dehuti Jani

December 11, 2025 at 11:41 AM IST

Indian equities snapped a three-day losing streak on Thursday, rebounding broadly after the US Federal Reserve delivered a 25-basis-point rate cut. The recovery came even as the rupee slumped to a fresh record low amid persistent concerns over stalled US–India trade negotiations. The Nifty50 rose 0.55% to 25,898.55, while the BSE Sensex climbed 0.51% to 84,818.13. Market breadth was strong, with 15 of 16 major sectors advancing.

The Nifty Midcap 100 gained 0.97%, and the Nifty Smallcap 100 added 0.81%, mirroring the broad-based risk-on sentiment. Financials and IT stocks recovered, rising 0.6% and 0.8%, respectively, after sharp declines over the prior three sessions. Sectorally, Media (-0.9%) and Oil & Gas (-0.03%) were the only indices in the red. Metals, Autos, Pharma, and Consumer Durables led the day’s gains, each rising around 1%.

Top Movers of the Day
Tata Steel jumped 2.6% after acquiring a stake in Thriveni Pellets, securing long-term pellet supplies. Hindustan Zinc and parent Vedanta also gained as silver prices touched a record high.

Eicher Motors hit a record high of ₹7,324, entering the ₹2 trillion market-cap club, supported by sustained investor interest in its Royal Enfield franchise.

Hindustan Construction Company rose nearly 5% after announcing a ₹3,364 crore reduction in corporate guarantees to its associate firm Prolific Resolution.

Shakti Pumps gained over 8% after securing ₹444 crore in orders from Maharashtra State Electricity Distribution Company for solar water pumps, marking its strongest intraday rise since August.

Kaynes Technology recovered 2.5% amid short covering, continuing its recent volatility following steep declines earlier in the week.

InterGlobe Aviation (IndiGo) extended losses, falling 3% intraday, as the airline cut its Q3 revenue and capacity forecasts after being ordered to trim its domestic winter schedule by 10%. The stock has now wiped out nearly ₹45,000 crore in market value in recent sessions.

Swiggy advanced 2.5% amid a large 1.5 million–share block trade, though the parties involved were undisclosed. Eternal (Zomato’s parent) rose 2.6% after the company updated its credit rating; however, the stock remains 21% below its 52-week high.

Suryoday Small Finance Bank rose 3.4% after the RBI approved 1729 Capital and associates to acquire up to 9.99% stake in the bank.

Seamec rallied nearly 7% after signing a subcontract with G R Infraprojects for the charter hire of its vessel SEAMEC III.

Samvardhana Motherson International gained 3%, hitting a 52-week high, supported by strong H1FY26 performance, new program ramp-ups and improving margins.

Tejas Networks climbed 2.5% after emerging as the largest supplier of IP routing equipment for 7 out of 12 BharatNet Phase-III packages awarded so far.

Futures & Options
Nifty December 2025 futures closed at 26,014, trading at a 115.45-point premium to the Nifty’s cash close of 25,898.55, which rose 0.55% on the day. Volatility remained subdued, with India VIX edging down 0.36% to 10.91, reflecting a steady near-term outlook post the Fed and RBI decisions. InterGlobe Aviation (IndiGo), Dixon Technologies, and Kaynes Technology India were the most actively traded stock futures in the session. The current December 2025 F&O series expire on 30 December 2025.

Bonds
Indian government bond yields fell sharply in early trade in tandem with the global bond surge after the US Federal Reserve delivered a 25 bps rate cut and reinforced a gradual easing outlook. The benchmark 10-year yield eased to 6.5903%, pulling back from Wednesday’s financial-year high of 6.6649%. Demand improved as the Fed’s updated projections signalled only one additional rate cut in 2026, boosting appetite for sovereign debt and easing upward pressure on domestic yields.

Forex
The rupee slipped to a fresh record low on Thursday, extending its decline beyond the ₹90-per-dollar mark as the lack of progress on an India–US trade deal and steady corporate dollar outflows intensified pressure on the currency. The rupee fell to 90.4675 against the dollar, breaching its previous all-time low of 90.42 touched on December 4. Analysts at Goldman Sachs noted that a record October goods trade deficit and muted capital inflows, amid uncertainty around the bilateral trade discussions, signal further deterioration in India’s net Balance of Payments position in Q4.

Crypto
Crypto markets showed muted reaction to the US Federal Reserve’s latest 25 bps rate cut, with major tokens continuing to trade lower on Thursday. Bitcoin hovered near the $90,000 mark after briefly slipping below it overnight, down about 2–2.5% over the past 24 hours, within a trading range of $89,600–$94,000, and holding a market cap near $1.8 trillion. Ethereum traded around $3,200, retracing sharply after a post-FOMC spike above $3,300 before easing back toward key support in the $3,100–$3,200 zone.

US Stock Futures
US stock futures fell sharply on Thursday as Oracle’s disappointing earnings reignited concerns about the durability of the AI-driven rally, reversing optimism that followed the Federal Reserve’s latest rate cut. Futures on the S&P 500 dropped 0.8%, while Nasdaq 100 contracts slid 1.2%, reflecting renewed pressure on tech. Dow Jones futures were comparatively resilient, slipping 0.4%.

US Treasury Notes
US Treasury yields edged lower on Thursday after the Federal Reserve delivered its third consecutive rate cut, lowering the federal funds rate to 3.50%–3.75%. The benchmark 10-year yield dipped to 4.15% in over-the-counter trading, easing from the previous session’s close. The move reflected a dovish shift from Chair Jerome Powell, who indicated that policy discussions will now centre on whether to pause or cut rates further, signalling that additional tightening is off the table for the foreseeable future.

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