Nifty Hits Fresh 14-Month High, Surpasses 26,277 Mark.
The Nifty 50 touched a new all-time high on November 27, reclaiming record territory after 14 months, while the Sensex opened higher on supportive global cues. The benchmark index surpassed its previous peak of 26,277 set in September 2024, rising to 26,295.55 in early trade.
Sectoral Trends: IT Lags, Durables See Profit Booking
Most sectors opened with modest gains. Auto, financial services, FMCG, metals, pharma, PSU banks, private banks, realty, media, and oil & gas indices showed small upticks, reflecting broad but cautious strength. IT stocks lagged, slipping into the red, while consumer durables fell nearly 0.5% due to profit booking.
Why Nifty Is at a Record High
The renewed rally was driven by resilient global cues, with US indices—the S&P 500, Dow Jones, and Nasdaq—extending gains overnight. Softer Treasury yields and policy optimism boosted risk appetite. On the domestic front, analysts highlighted improving corporate earnings prospects, easing valuations, and expectations of upcoming rate cuts by the US Federal Reserve and the RBI.
Yesterday’s Performance
The Nifty had already marked its best session in five months yesterday, closing at a 14-month high. Strong buying in rate-sensitive sectors fueled the rally, supported by speculation of a December Fed rate cut and a potential RBI easing move next week.
Market Context in 2025
Despite this breakout, Indian benchmarks have underperformed other Asian and emerging markets in 2025. Factors like subdued earnings, elevated valuations, geopolitical uncertainties, and persistent foreign outflows weighed on performance. However, the outlook is improving with picking corporate earnings, moderated valuations, rising rate-cut expectations, and strong domestic inflows. Early signs suggest foreign selling is easing.
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