Indian benchmark indices rebounded strongly on Friday, fueled by positive global cues and renewed expectations of Federal Reserve rate cuts. The Sensex climbed 350 points, while the Nifty crossed the 25,900 mark, recovering from losses in the previous four sessions.

Market Overview

The BSE Sensex gained 350 points to reach. The NSE Nifty also mirrored this positive trend, trading above 25,900. This upswing follows a period of volatility, with Thursday seeing the Sensex closing marginally lower by 77.84 points, or 0.09%, at 84,481.81, and the Nifty50 edging down just 3 points, or 0.01%, to 25,815.55.

Sectoral Performance

All sectors participated in today's rally, indicating broad-based buying interest. Positive sentiments were seen across the board, contributing to the overall market rebound.

Global Factors

A cooler-than-expected U.S. inflation reading has boosted global risk appetite. This development has revived expectations of potential rate cuts by the Federal Reserve in the near future, further fueling the market rally. Asian markets also reflected this positive tone, contributing to the upbeat mood in the Indian market.

Rupee Movement

The Indian rupee has shown some recovery, gaining 55 paise to close at 90.38 against the U.S. dollar. However, it had previously slumped to an all-time low of 90.75 against the dollar in intraday trade.

Meesho's Performance

In contrast to the broader market's positive movement, shares of e-commerce platform Meesho slid 5%. This decline comes after a period of impressive gains since its IPO on December 10. Notably, on December 18, the stock fell sharply after crossing ₹1 lakh crore in market capitalization earlier in the session.

Meesho's IPO and Subsequent Performance

Meesho's IPO was met with strong investor demand, being oversubscribed almost 81 times. Following its listing, the shares surged, making it India's best-performing IPO this year. The company's CEO, Vidit Aatrey, even entered the billionaire ranks due to the stock's impressive performance. However, the stock's volatility has been evident, with a low free float of only 6% amplifying price swings. As of today, the current price of MEESHO is 235.57 INR, a 0.31% increase in the past 24 hours.

Market Outlook

Market analysts anticipate caution and range-bound trading in the near term. Investors are closely watching the Bank of Japan's policy meeting and interest rate decisions from other global central banks. Furthermore, fluctuations in the rupee-dollar exchange rate and the activity of foreign institutional investors will likely influence market sentiment.