The equity benchmarks traded higher on Monday, with both the Sensex and Nifty scaling fresh lifetime highs, supported by stronger-than-expected economic growth in the July–September quarter and positive cues from global markets.
The Sensex jumped 452.35 points to 86,159.02 -- its record peak. The Nifty climbed 122.85 points to hit a lifetime high of 26,325.80. Both indices surpassed their previous all-time highs touched on November 27.
Adani Ports and Special Economic Zone, Tata Motors Passenger Vehicles, JSW Steel, Kotak Mahindra Bank and Maruti Suzuki India were among the top gainers in the Nifty50 pack, rising up to 2 percent.
Key factors behind market rise
1) Stronger GDP data lifts sentiment: Investor mood was buoyed after official data showed India’s GDP grew 8.2 percent in the September quarter, the fastest in six quarters and above market expectations.
Economists attributed the expansion to robust consumer demand and front-loaded production ahead of the festival season. Following the data release, Barclays raised its growth forecast for 2025-26 to 7.2 percent from 6.8 percent.
"The excellent Q2 GDP numbers at 8.2 percent, particularly the strong performance in manufacturing, services and consumption, have the potential to take the market higher," said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
What pushed India’s growth to 8.2%? Five charts explain India’s Q2 GDP
2) Progress on India-US trade discussions: Expectations of movement on a proposed India-US trade arrangement also contributed to the upbeat sentiment. Commerce Secretary Rajesh Agarwal said negotiations were progressing on both a broader Bilateral Trade Agreement (BTA) and a separate framework aimed at resolving reciprocal tariff issues faced by Indian exporters.
The framework pact is likely to advance first and could be concluded by end-2025, eventually feeding into the wider BTA. Agarwal said the first tranche of the deal was "largely on track" and could be finalised within weeks or months, subject to approvals.
3) Rate cut hopes ahead of RBI policy meet: Markets also drew support from expectations of a rate cut by the Reserve Bank of India at its December 5 policy meeting. A majority of economists in a Reuters poll anticipate a 25-basis-point reduction in the repo rate to 5.25 percent, with rates likely to remain unchanged through 2026.
RBI expected to cut rates to 5.25% on December 5: Reuters poll
4) Volatility index declines: The India VIX, the domestic volatility gauge, fell more than 1 percent to 11.5. A lower VIX typically reflects reduced market uncertainty and helps support equities.
Technical view
According to Anand James, Chief Market Strategist at Geojit Financial Services, recent chart patterns suggest the broader uptrend remains intact.
James said dips or flat openings may occur early in the week but are unlikely to hold. He expects the Nifty to advance towards 26,460–26,550 initially, followed by 26,900–27,200. On the downside, a fall below 26,090 could expose levels of 25,860/25,700 or even 25,300.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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