Indian Stocks Rise Before Inflation Data Amid Limited Momentum

According to recent market reports and economic data, Indian stocks continued their upward trend for the second consecutive day as the country prepared for sensitive inflation readings that could influence future monetary policy. The BSE Sensex closed up approximately 0.5% at 85,268 points on Friday, benefiting from global optimism following the U.S. Federal Reserve's decision to cut interest rates and provide less hawkish guidance than expected. The metal, financial, and industrial sectors saw notable recoveries, with major companies like Tata Steel, Eternal, UltraTech Cement, Larsen & Toubro, and Maruti Suzuki leading gains between 1.5% and 3.4%. However, some leading stocks fell, including Hindustan Unilever (-1.9%) and Sun Pharma (-0.7%). Despite the recent surge, the index ended the week slightly down by 0.5%, affected by continued foreign fund outflows and uncertainty regarding a potential trade agreement between the U.S. and India. Inflation for November rose slightly to 0.71%, remaining below the Reserve Bank of India's lower threshold of 2% for the third consecutive month, driven by a decline in food prices and stable housing costs. This low inflation gives the central bank room to maintain interest rates, creating a supportive environment for stocks in the short term.