Indian markets opened the week on a high note, with the Nifty50 index reaching a new all-time high as strong Q2 GDP numbers lifted investor confidence and fueled expectations of a potential 25-basis-point rate cut by the Reserve Bank of India (RBI).
The Nifty50 opened at 26,325.80, up 122.85 points (0.47%), while the BSE Sensex started at 86,065.92, gaining 359.25 points (0.42%). Both indices had already touched lifetime highs last Thursday, reflecting sustained market optimism.
Strong GDP Data Supports Market Rally
Experts attribute the rally to India’s stellar Q2 FY2026 GDP growth of 8.2%, which significantly boosted investor sentiment. Ajay Bagga, Banking and Market Expert, highlighted that low WPI, moderate CPI, and a GDP deflator of 0.5% pushed nominal GDP to 8.7%, still below the Union Budget’s projections.
With the RBI’s Monetary Policy Committee meeting scheduled from December 3-5, analysts suggest a 25-basis-point rate cut may be considered to further stimulate economic growth.
Bagga also noted that the Winter Session of Parliament, beginning this week, could witness disruptions from the opposition. Nevertheless, key reform bills are expected to pass due to the government’s majority. He added that the rupee weakened slightly due to large dollar outflows from oil import payments at month-end.
Broad Market and Sectoral Gains
The broader market reflected widespread buying, with the Nifty100 up 0.35%, Nifty Midcap rising 0.37%, and Nifty Small Cap climbing 0.65%.
Key sectors also performed strongly:
- Nifty Auto: +0.53%
- Nifty IT: +0.48%
- Metals: +1%
- Nifty Pharma: +0.23%
- Nifty PSU Bank: +1%
- Nifty Realty: +0.19%
Sunil Gurjar, SEBI-registered analyst and Founder of Alphamojo Financial Services, noted, “The Nifty50 surged by +134 points despite earlier flat sessions. Trading above key moving averages signals further upward momentum, and a breakout above 26,264 could continue the uptrend.”
Global Cues Remain Positive
Internationally, markets are watching US retail sales over Thanksgiving to gauge consumer strength. Oil prices rose following OPEC+’s decision not to increase Q1 2026 production, while gold and silver continue to trade firm, sustaining positive global sentiment.
With robust domestic GDP growth, sector-wide gains, and supportive global trends, investor confidence remains strong as markets navigate the new trading week.