Benchmarks snap 3-day losses in early trade; IT shares advance

The domestic equity indices trade with minor gains in early trade, snapping a three-day losing streak, after the US Federal Reserve delivered its widely anticipated 25-basis-point rate cut on Wednesday, a move that could help stem foreign outflows from domestic equities.

The Nifty traded above the 25,750 mark. IT, PSU bank and metal shares advanced while media, FMCG and consumer durables shares declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex, added 139.40 points or 0.17% to 84,530.67. The Nifty 50 index rose 41.85 points or 0.16% to 25,796.75.

In the broader market, the S&P BSE Mid-Cap index rose 0.25% and the S&P BSE Small-Cap index shed 0.11%.

The market breadth was positive. On the BSE, 1,535 shares rose and 1,383 shares fell. A total of 178 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,651.06 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 3,752.31 crore in the Indian equity market on 10 December 2025, provisional data showed.

Stocks in Spotlight:

Mazagon Dock Shipbuilders rose 0.90%. The company stated that it has entered into an agreement with the Indian Navy and Brazilian Navy in association for information on maintenance of Scorpe-class submarines.

Tata Steel rose 0.84%. The company announced that its board has approved the acquisition of a 50% stake in Thriveni Pellets for Rs 636 crore to secure a pellet-making facility for the supply of iron-ore pellets in India.

Meanwhile Tata Steel and Lloyds Metals and Energy have entered into a non-binding Memorandum of Understanding (MoU) to examine potential areas of cooperation, including raw-material mining, logistics, pellet production, and steel making.

Numbers to Track:

The yield on India's 10-year benchmark federal paper jumped 0.78% to 6.618 compared with previous session close of 6.618.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 90.0600 compared with its close of 89.9450 during the previous trading session.

MCX Gold futures for 5 February 2025 settlement rose 0.54% to Rs 130,497.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.01% to 98.64.

The United States 10-year bond yield fell 1.15% to 4.123.

In the commodities market, Brent crude for February 2025 settlement shed 7 cents or 0.11% to $62.14 a barrel.

Global Markets:

Most Asian markets perked up on Thursday, taking their cue from Wall Streets upbeat reaction to the Federal Reserves third rate cut of the year.

Overnight in the U.S., the Dow Jones Industrial Average climbed 1.1% after the Fed decision, while the S&P 500 added 0.7% and the Nasdaq Composite inched up 0.3%.

The Fed trimmed the Federal Funds rate by 25 basis points to 3.5%-3.75% and hinted that this could be the last cut for a while. At his press briefing, Chair Jerome Powell said the latest move puts the central bank in a comfortable zone on policy.

Alongside the rate call, the Fed also unveiled plans to restart purchases of $40 billion in Treasury bills beginning Friday, nudging short-term yields lower. The policy statement quietly acknowledged a softer labor market, dropping the earlier reference that conditions remained low, a subtle sign that the Feds attention is tilting more toward supporting growth than fighting inflation.

After the bell, Oracle slid 11% as weak quarterly revenue and a higher spending outlook spooked investors. The selling spilled over to other AI-linked names in extended trade, with Nvidia drifting 1% lower and CoreWeave losing more than 3%.

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