The Indian stock market closed in positive territory on Thursday, December 7 on the back of gains in banking names as investors expect the government to outline details of the bank recapitalization plan announced in October. To remind, the Indian government intends to inject an unprecedented INR 2.11 tn (USD 32 bn) into the banking sector. Recapping the benchmarks, the Nifty 50 advanced 1.22% to 10,166.70, and the BSE Sensex ended 1.08% higher at 32,949.21. Notably, the benchmarks retreated for six out of the past seven sessions. By 10:45 GMT the USD/INR pair ticked up 0.08% to 64.577, while EUR/INR eased 0.02% to 76.0988. The 10-year Indian government bond yield stood at 7.028%. As noted above, banking names outperformed the broader market. In particular, State Bank of India and Bank of Baroda added 1.23% and 1.18%, respectively. Meanwhile, the country’s largest gas distribution company GAIL (India) soared 8.57%, hitting a record high of INR 492.55 per share. IRB Infrastructure Developers underperformed, ending 2.36% lower as equity analysts at HSBC downgraded the stock to Hold from Buy. As the daily chart shows, the BSE Sensex has bounced off the lower line of Bollinger bands, while the Slow Stochastic Oscillator is in oversold territory, with the RSI pointing north. As a result, an upturn can be expected in the short term.