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BUSINESS & TRADE DECEMBER 05, 2025 | The Indian Eye 34

INDIAN STOCKS

Equities Hit Record Highs

as Global Tailwinds and Strong

Fundamentals Power Rally

A mix of global rate-cut optimism, resilient domestic demand and improving market
sentiment is sending Indian stock indices to fresh all-time highs.

OUR BUREAU
Mumbai
ndian equities have surged to historic levels
this week, with both the Sensex and Nifty post-
Iing strong gains as global and domestic cues
aligned to fuel a broad-based rally. The benchmark
indices, which had opened weak earlier in the week,
rebounded sharply amid renewed buying interest,
driven by expectations of impending rate cuts by
both the US Federal Reserve and the Reserve
Bank of India (RBI).
On Wednesday, the Sensex closed at 85,609.51
points, up 1,022.50 points or 1.21 per cent, while
the Nifty settled at 26,205.30, rising 320.50 points
or 1.24 per cent. According to market experts,
much of this rally stems from growing belief that
global central banks — led by the Fed — will begin
loosening monetary policy sooner than expected.
“Indian markets staged an impressive rally, re-
flecting sharp risk-on sentiment across global equi-
ties,” said Ponmudi R, CEO of Enrich Money. He
noted that softening US retail sales and producer
price data have strengthened expectations of a
Federal Reserve rate cut in December. Cooling Brokers track market trends as Sensex and Nifty extend gains on Thursday (ANI Photo)
inflation in the world’s largest economy has eased
pressure on emerging markets and revived appe- with the Nifty hitting a fresh record of 26,285.95 strong close above 26,277 can trigger a move to-
tite for risk assets. — its first new peak in 14 months. The Sensex ward 26,350–26,500, with a possible extension to-
Sectorally, the rally has been all-encompass- climbed as high as 85,843.82 in early trade. Inves- ward 27,000 in the short term,” he said, adding that
ing. Metal, consumer durables, and oil and gas tors remained aggressively optimistic, reversing immediate support lies at 26,100–26,000.
stocks led the uptrend, with all NSE sectoral indi- last month’s cautious mood and signalling a strong Global markets have amplified the bullish
ces closing in the green. According to Vinod Nair, revival in bullish sentiment. mood. Despite recent weakness in AI stocks, US
Head of Research at Geojit Financial Services, the Ajay Bagga, a banking and market expert, said indices have advanced on hopes of softer monetary
upsurge also reflects what he described as a fes- the markets are now well-positioned to reclaim policy. Asian markets — including Japan’s Nik-
tive-season “Santa Claus rally” in global markets. and build on the all-time highs recorded in Sep- kei, Taiwan’s Weighted Index, Singapore’s Straits
“Robust retail and domestic institutional investor tember 2024. “A decisive close above those levels Times and South Korea’s KOSPI — also traded
inflows have supported the market, even as FII opens the way for a rapid catch-up. Historically, higher, reflecting broad confidence across the re-
participation remains modest,” he said. after a period of relative underperformance, Indi- gion. Falling crude oil prices, driven by renewed
Domestic sentiment has also received a boost an markets deliver strong returns over the next 12 diplomatic efforts between Ukraine and Russia,
from expectations that the RBI may follow the months,” he said. Bagga added that expectations of further strengthened India’s macro environment.
Fed in easing interest rates. Analysts widely antic- corporate earnings recovery in the next two quar- Together, these forces — strong domestic in-
ipate a 25-basis-point reduction in the December ters — combined with a supportive fiscal stance flows, improving policy visibility, favorable global
monetary policy review, citing moderating infla- and improving consumption — are strengthening cues and expectations of a renewed earnings cycle
tion and a dovish tilt in recent RBI communica- the medium-term outlook. — have created a potent combination that is pro-
tions. A potential rate cut, combined with robust The technical picture also remains robust. pelling Indian markets to new records. With sen-
domestic liquidity, is seen as a major positive for Nifty’s sustained movement above support zones timent turning decisively positive, investors and
equity valuations. and its pattern of forming higher lows signals per- analysts alike believe the rally may just be getting
Thursday’s session added further momentum, sistent underlying strength, said Ponmudi R. “A started.

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