Nifty Hits All-Time High After 14 Months; Here Are The Key Factors Behind Market Surge

Nifty50: The Indian benchmark indices opened on a strong note Thursday, with the Nifty50 touching a fresh all-time high after a 14-month gap, lifted by growing optimism over potential U.S. and domestic interest-rate cuts expected next month. The S&P BSE Sensex jumped over 300 points, crossing 85,850 in early trade, while the Nifty50 advanced 77 points to hit a new peak of 26,290, surpassing its previous record from September 2024.

Top gainers on the Sensex included Bajaj Finance, Axis Bank, Larsen & Toubro, Bajaj Finserv and Asian Paints, which gained between 0.8% and 1.5%.

Broader Markets Steady; Indices Extend Momentum

The Nifty climbed as much as 0.32% at the open, hitting 26,289.80, while the Sensex rose 0.35%, inching close to its all-time high.

Broader markets also mirrored the positive sentiment. The midcap index opened 0.1% higher, and the small-cap index also edged up 0.1%, signaling overall market strength across segments.

Expert Outlook: Bullish Undertone Strengthens

Market experts say the recent rally has shifted momentum decisively. According to Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the 320-point surge in Nifty has set the stage for a bullish phase.

He noted that new lifetime highs for both the Nifty and Sensex are “only a matter of time,” supported by strong technicals and elevated FII short positions that could fuel further upside.

Vijayakumar added that the rally is backed by improving earnings expectations for Q3 and Q4 of FY26, strengthened by robust festive consumption. However, he cautioned that valuation concerns may limit the scope for a sustained sharp uptrend. He also highlighted that Bank Nifty remains fundamentally strong, capable of driving markets to fresh records.

Improving global sentiment, driven by expectations of a Federal Reserve rate cut and optimism around a possible Russia–Ukraine peace accord, is further supporting risk appetite, he said.

FII-DII Flows Stay Supportive

Foreign Institutional Investors (FIIs) bought equities worth ₹4,778 crore on November 26, while Domestic Institutional Investors (DIIs) remained net buyers with ₹6,248 crore worth of purchases, extending liquidity support to the markets.

Global Markets: Asia Advances As Dollar Softens

Asian markets traded higher Thursday as investors increased bets on a U.S. rate cut in December. MSCI’s Asia-Pacific index outside Japan gained 0.4%, heading for its first weekly win after three weeks of losses.

Japan’s Nikkei and South Korea’s Kospi climbed over 1%, while China’s CSI 300 real-estate index fell to a one-year low even as the broader benchmark rose modestly.

Gold slipped 0.4% to $4,146.53 an ounce, giving up gains from the previous session.

Oil Prices Dip On Ceasefire Hopes

Crude prices eased as discussions around a potential Russia-Ukraine ceasefire raised hopes of softer sanctions on Russian oil supply. Brent crude dropped to $62.92 a barrel, while WTI slipped to $58.44, with holiday-thinned U.S. trading keeping volumes low.

The Indian rupee opened 0.07% stronger at 89.2050 against the U.S. dollar, buoyed by the dollar index’s ongoing decline. The greenback is on track for a fifth straight day of losses amid rising confidence in a December Fed rate cut. Bankers, however, warned that the rupee’s relief rallies have been short-lived in recent weeks.

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