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Sensex's two-day surge raises hopes of Santa Rally. Are sharp gains ahead for Dalal Street in last week of the year?

Sensex today: A sharp two-day surge in the Indian stock market's benchmark indices, Sensex and Nifty, has raised investors' hope of a rally in the run-up to the end of year, which has otherwise proven to be a difficult one for stock market investors. Despite being on track to end higher for the 10th year in a row, 2025 was marked by high turbulence as investors reeled under the shock of 50% Trump tariffs, record FII outflows and earnings slowdown. Now, with the Sensex rising almost 1,000 points in just two days, and Nifty 50 reclaiming the 26,100 mark on Monday, December 22, hopes of a rise in the fag-end of the year are ripe for the Santa Claus Rally — but the key question remains, will it materialise?

Sensex's two-day surge raises hopes of Santa Rally. Are sharp gains ahead for Dalal Street in last week of the year?

Credit: Livemint

Key Highlights

  • The Santa Claus Rally is a seasonal stock market pattern where prices tend recorded by indices amid improved sentiment, lighter volumes, and year-end positioning.
  • According to analysts, while talks of a Santa Rally in the market are gaining momentum, the possibility of a broad-based market surge looks dim.
  • Kunal Kamble, Sr.
  • Technical Research Analyst at Bonanza, said the possibility of a Santa Rally during the year-end cannot be ruled out.
  • However, it may remain selective and range-bound rather than a sharp one-sided move, he said.
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Sources

  1. Sensex's two-day surge raises hopes of Santa Rally. Are sharp gains ahead for Dalal Street in last week of the year?

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

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