Sensex retreats from record high, Nifty settles flat after erasing day's gains

After etching fresh records, Nifty 50 and Sensex gave up their gains.

After hitting fresh all-time highs in trade, benchmark indices Nifty 50 and Sensex have retreated from their records settling flat on November 27.

At close, the Sensex was up 110.87 points or 0.13 percent at 85,720.38, and the Nifty was up 10.25 points or 0.04 percent at 26,215.55. About 1,900 shares advanced, 2,073 shares declined, and 167 shares were unchanged.

The sectors settled mixed, with financial services, media, IT and private banks posting modest gains, while autos and FMCG remained largely flat. Weakness was visible in PSU banks, realty, consumer durables, metal, oil and gas, and healthcare, which slipped into the red. Pharma held steady with no major movement.

Nifty 50 hitting a new high after 14 months is an important sign that market sentiment has turned strongly positive. The index had been consolidating near its previous peak of 26,277 for over a year, holding key support levels of 26,000-25,800.

The rally has been reinforced by expectations of rate cuts from both the RBI and the US Federal Reserve - a shift that improves visibility for interest-rate-sensitive sectors and could trigger renewed FPI inflows.

Alongside this, early signs of an earnings recovery from Q3 - supported by GST rationalisation and improving rural demand - are improving confidence in the earnings cycle, said Ajay Menon, MD & CEO - Wealth Management, Motilal Oswal Financial Services.

"Optimism around a potential trade agreement boosting export-linked sectors has further strengthened sentiment. Together, these factors are driving investors to move beyond selective positioning and reposition portfolios for a more broad-based market upcycle," Menon added.

"This breakout above 26,277 confirms that the long-term uptrend is intact and gaining strength. It also reflects renewed institutional buying, supported by better macro conditions, stable earnings, and participation from multiple sectors," said Amruta Shinde, Technical & Derivative Analyst at Choice Broking.

Shinde added that the Nifty 50 has moved above its earlier resistance zone of 26,250-26,280, which now becomes a strong support area for future rallies. Market breadth remains healthy, showing that the rise is not limited to a few stocks. Key sectors like banking, autos, and capital goods are leading the momentum, adding confidence to the breakout.

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