Indian equities kicked off Thursday’s session in record-breaking style, with the Sensex and Nifty50 surging to fresh all-time highs, as growing expectations of U.S. and domestic interest rate cuts next month lifted investor sentiment.
The S&P BSE Sensex rose over 400 points, to hit a high above 86,000, while the NSE Nifty50 rose to a record high above 26,300, their first peak in 14 months.
On the 30-stock Sensex, Bajaj Finance, Axis Bank, Larsen & Toubro, Bajaj Finserv and Asian Paints led the gainers, rising between 0.8% and 1.5%.
Broader markets opened firmer, with the midcap index up 0.1%, while the small-cap index also gained 0.1%.
Expert views
With the 320-point rally in the Nifty yesterday, the market construct has changed to a bullish mode, said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, adding that "New all-time highs for Nifty and Sensex are only a question of time. The technical construct of the market with high FII short position is also favourable for rally.""Importantly, the rally has fundamental support from potential earnings growth expected in Q3 and Q4 of FY 26. The consumption boom witnessed in October will translate into impressive earnings growth. If the trend sustains, even with slight moderation after the festival season, earnings growth, going forward, will be good, warranting a rally in the market. But there is no room for a sharp sustaining uptrend since valuations do not support that. Fundamentally, Bank Nifty has the strength to support a rally to a new record high," said Vijayakumar.
"Expectation of a rate cut by the Fed and a possible Russia-Ukraine peace accord have improved sentiments for equity markets globally," said Vijayakumar.
FII/DII Tracker
On the institutional front, Foreign Institutional Investors (FIIs) purchased equities worth a little over Rs 4,778 crore on November 26, while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 6,248 crore.
Global Markets
Asian equities advanced Thursday and the dollar softened as traders ramped up bets on a Federal Reserve rate cut next month.
With U.S. markets closed for Thanksgiving and a shortened session due Friday, trading remained thin and relatively calm, as investors largely shrugged off earlier-in-the-month worries around an AI-fueled bubble.
MSCI’s broadest Asia-Pacific index outside Japan rose 0.4%, tracking Wall Street’s gains and heading for an end to a three-week losing streak. Japan’s Nikkei and South Korea’s Kospi each climbed more than 1%. In China, the CSI 300 real estate gauge slid to a one-year low, down 1.5%, even as the broader CSI 300 inched up 0.4%.
Gold slipped 0.4% to $4,146.53 an ounce, following a 0.8% gain in the previous session.
Crude impact
Oil prices slipped Thursday as expectations of a Ukraine-Russia ceasefire raised the prospect of easing Western sanctions on Russian supply, with trading thinned by the U.S. Thanksgiving holiday.
Brent crude fell 21 cents, or 0.3%, to $62.92 a barrel, while U.S. West Texas Intermediate dropped 21 cents, or 0.4%, to $58.44 a barrel as of 0108 GMT.
Rupee vs Dollar
The Indian rupee opened 0.07% stronger at 89.2050 to the U.S. dollar on Thursday, supported by a softer greenback as traders priced in a potential Federal Reserve rate cut in December. Bankers, however, cautioned that the currency has struggled to hold on to relief rallies.
The dollar index slipped in Asian trading, putting it on track for a fifth straight day of declines. The gauge is down about 0.8% this week, weighed by rising confidence that the Fed will deliver another 25-basis-point cut next month.
(with inputs from agencies)