Mumbai, India – Indian benchmark indices, the Sensex and Nifty 50, soared to new record highs on Thursday, propelled by optimistic sentiment surrounding potential interest rate cuts and strong economic indicators. The Bank Nifty index, reflecting the performance of major banking stocks, extended its outperformance, decisively crossing the 59,800 mark.
The Nifty 50 index reached an all-time high of 26,289.80, surpassing its previous peak in September 2024. The BSE Sensex also mirrored this bullish trend, hitting a new high of 86,026 in intraday trading. This marks the first new all-time high for the Sensex in the calendar year 2025.
Driving this surge is the growing expectation of interest rate cuts by both the U.S. Federal Reserve and the Reserve Bank of India (RBI) next month, fueling buying interest in the market. Market analysts suggest that the overall sectoral sentiment is moderately positive, with most sectors displaying strength despite some consolidation. Defensives, technology, and manufacturing sectors are leaning towards constructive growth, while energy, consumer durables, and public sector banking are displaying mild softness.
The Bank Nifty's performance is particularly noteworthy. It has displayed steady traction, with healthy buying activity from lower levels. Currently, the index is holding support around 59,200–59,300, while facing resistance at 59,700–59,800, a zone considered crucial for its next directional move. The optimism in banking stocks is further supported by strong gains across both PSU and private bank indices. Key players like Kotak Mahindra Bank, Canara Bank, and IDFC First Bank have seen rallies between 1.5% and 2.5%.
Broader market trends indicate firm opening, with the midcap index up by 0.1% and the small-cap index also experiencing gains of 0.1%. Market experts advise that with the indices at record highs, traders and investors should closely monitor key resistance levels and manage risk carefully, as increased volatility is possible in the coming sessions.
From an economical standpoint, India is projected to have grown nearly 7% in the July-September quarter and is expected to expand at 6.8% in the current financial year ending March 2026. This economic resilience, coupled with expectations of earnings recovery, is contributing to a constructive market view. Corporate earnings have shown their strongest revival in over a year, and brokerages are optimistic about profit growth, anticipating a broader consumption rebound driven by benign inflation, recent tax cuts, and lower borrowing costs.
The Nifty 50 has joined the rally of major global stock indexes, reaching record highs. Foreign Institutional Investors (FIIs) have been actively investing, purchasing equities worth ₹4,778 crore on November 26, while Domestic Institutional Investors (DIIs) were net buyers to the tune of ₹6,248 crore.
