Hello stock market friends! Today was a day of celebration for the Indian markets. The Nifty50 and BSE Sensex have once again touched new lifetime highs after a gap of 14 months. Investors had been waiting for better days for the past several months, and finally, this rally has returned with such force that even market experts are carefully examining its reasons.
How did the market recover from the 2025 decline
At the end of 2024, after a record high in September, the market suddenly fell sharply. The entire year of 2025 was full of ups and downs, especially due to the US trade war policies and heavy tariffs. But now the situation has changed. Foreign institutional investors (FIIs) bought ₹4,778 crore on November 26th, and domestic institutions invested ₹6,247 crore. This has completely changed the market sentiment.
Why is market confidence growing
Dr V.K. Vijaykumar of Geojit Investments explains that three major reasons were behind India’s underperformance: weak corporate results, high valuations, and persistent FII selling. But now all three have reversed. With better second-quarter results, valuations have moderated slightly, and foreign investors have stopped selling.
Global brokerages are also in India. High projections for 2026
International brokerage houses have made strong claims for India. JP Morgan has set a target of 30,000 for the Nifty50. Morgan Stanley has said that the Sensex could reach 107,000 by December 2026. HSBC has also downgraded India to ‘Overweight’. All these signs indicate that the Indian market could emerge as a major player in global focus in the future.
Why is the market booming? Understand the real reasons
Stock Market Hopes of a US-India trade deal have risen, further boosting investor confidence. Inflation has fallen below the RBI’s tolerance range, raising expectations for an interest rate cut in December. Economic data in the US also indicates that the Federal Reserve may reduce interest rates. Furthermore, corporate results for Q2 FY26 were very strong; banking, IT, and financial sectors all performed strongly.
Why is Nifty outperforming Sensex
Stock Market The Nifty50 includes companies from 24 sectors, including those currently growing fastest, such as IT, BFSI, and financial services. In comparison, the Sensex is limited to just 30 large companies, whose growth rate is relatively slow. Therefore, Nifty’s rally appears to be more rapid.
Will this rally last? Experts’ Warnings and Expectations
Stock Market Sneha Poddar of Motilal Oswal says the sustainability of the rally will depend on FII inflows and corporate earnings growth in the coming quarters. Thomas Abraham of Mirae Asset believes that if the RBI cuts rates in December and there are positive signs of a trade deal, the market could rally further. However, some experts also say that valuations are still not cheap, so expecting a sustained rally without a break may be difficult.
Frequently Asked Questions
Can the Sensex and Nifty reach new highs again in the coming months?
Yes, current signals are positive, and the market could reach new highs.
Will FII inflows sustain this rally?
If US interest rates fall, FII inflows could become even stronger.
Is now the right time to invest?
This is a good time for long-term investors, but short-term volatility is possible.
Disclaimer: This article is for informational purposes only. Please consult your financial advisor before making any investments.
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