Benchmark index Nifty 50 hit a fresh record high after 14 months on November 27, while the 30-share Sensex gained at the open, lifted by supportive global cues.
The Nifty topped its previous peak of 26,277.35, set in September 2024 by touching the 26,295.55 mark. The Bank Nifty index also hit a record high of 59,802.65 in early trade.
At 09:25 am, the Sensex was up 247.02 points or 0.29 percent at 85,856.53, and the Nifty was up 63.20 points or 0.24 percent at 26,268.50.
Most sectoral indices opened on a mixed note. Auto, financial services, FMCG, media, metal, pharma, PSU banks, private banks, realty, healthcare, and oil and gas posted mild gains, reflecting broad but modest strength across the market. However, the IT index traded slightly in the red, and consumer durables slipped nearly half a percent, indicating some profit booking in rate-sensitive and discretionary pockets.
Overnight, major U.S. indices, including the S&P 500, Dow Jones, and Nasdaq, posted another session of solid advances as softer Treasury yields and renewed policy optimism strengthened risk appetite.
The technical construct of the market with high FII short position also is favourable for rally. Importantly, the rally has fundamental support from potential earnings growth expected in H2FY26. The consumption boom witnessed in October will translate into impressive earnings growth, noted experts.
"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 VK Vijayakumar, Chief Investment Strategist, Geojit Investments.
He added that the expectation of a rate cut by the Fed and a possible Russia-Ukraine peace accord have improved sentiments for equity markets globally.
On the technical front, on the upside, the 26,250–26,300 region - which coincides with the earlier all-time high - remains the immediate supply zone. "Given the current setup, the index appears well-positioned to attempt a breakout and move past its earlier peak," Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities said.
He added that as long as Nifty holds above its support band, the broader trend is expected to stay constructive, with every corrective move likely to attract fresh accumulation
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