Nifty closes above 26,200, Sensex stages 1,000 point jump, all sectors in green as bulls roar

The benchmark Nifty 50 and Sensex indices rallied sharply in trade on November 26, soaring amid broad-based buying interest. Investors' bullish sentiment was reinforced amid the rising likelihood of the U.S. Federal Reserve cutting interest rates in December.

At close, the Sensex was up 1,022.50 points or 1.21 percent at 85,609.51, and the Nifty was up 320.50 points or 1.24 percent at 26,205.30. About 2723 shares advanced, 1286 shares declined, and 141 shares unchanged.

The markets regained momentum as U.S. consumer confidence in November saw its steepest drop since April, and retail sales rose modestly in September, suggesting consumer spending is cooling after months of strong demand. The delayed economic reports out of the U.S. further cemented bets for a Fed cut in December, even after Chair Jerome Powell warned last month that a reduction isn’t a foregone conclusion.

"On the domestic policy front, the Reserve Bank of India (RBI) is widely anticipated to implement a 25-basis point rate cut in December, supported by moderating inflation and a dovish stance. Furthermore, increasing optimism surrounding a potential truce between Russia and Ukraine is enhancing risk appetite, fostering a positive outlook for the upcoming year," said Vinod Nair, Head of Research, Geojit Investments.