Fed Rate-Cut Expectations Lift Markets; Nifty Reclaims 26,200, Sensex Soars 1,022 Points
Nifty Above 26,200 as Markets Break Three-Day Losing Streak on Strong Global Cues
| Index | Price | Change | % Chg |
| Nifty 50 | 26,205.30 | 320.50 | +1.24% |
| Nifty Bank | 59,528.05 | 707.75 | +1.20% |
| Nifty Financial | 27,799.50 | 390.10 | +1.42% |
| BSE SENSEX | 85,609.51 | 1022.50 | +1.21% |
In a powerful rebound driven by a wave of global optimism, Nifty above 26,200 and Sensex surged past 1,000 points on Wednesday, snapping a three-day losing streak and closing just a whisker away from fresh record highs. A sharp pickup in global risk appetite, boosted by rising expectations of a December US Federal Reserve rate cut, supported a broad-based rally across sectors.
The Nifty 50 soared 320 points, finishing at 26,205.30, while the BSE Sensex climbed 1,022 points to end at 85,609.51, marking a robust 1.21% gain. With both benchmarks now within touching distance of their all-time peaks, analysts believe a small positive trigger could be enough to propel the indices to new lifetime highs.
With Nifty above 26,200 and Sensex less than 400 points away from its previous high of 85,978, the mood across Dalal Street turned decisively bullish.
The Nifty 50, meanwhile, sits just 72 points below its earlier record of 26,277, touched in September 2024.
The strong rally added more than ₹4 lakh crore to the total market capitalisation of BSE-listed companies, taking the figure to an impressive ₹474.87 lakh crore.
A combination of softening crude oil prices and fresh global cues amplified the bullish momentum. Reports of potential progress toward a Ukraine–Russia peace agreement pushed Brent crude sharply lower to around $62, further easing inflationary risks for India’s import-heavy economy.
Also Read : Piyush Goyal: US Trade Deal Close as India Pushes FTA Talks With Multiple Nations
The banking pack joined the upward march, with Nifty Bank rising 1.20% to a fresh record of 59,554.95 before closing at 59,528.05.
Heavyweight banking and financial stocks supported the surge, indicating improved risk appetite among investors.
The BSE Midcap and Smallcap indices also climbed 1.2% each, signalling broad market participation — a key indicator of rally strength.
This strong recovery across large-cap, mid-cap and small-cap segments reinforces the dominance of positive sentiment, confirming the market’s ability to absorb previous volatility.
The day saw strong buying across major stocks. Nifty’s top performers included:
JSW Steel (+3.69%)
HDFC Life (+2.80%)
Bajaj Finserv (+2.55%)
Bajaj Finance (+2.51%)
Jio Financial (+2.39%)
On the flip side, the key laggards were:
Asian Paints (-5.70%)
Bharti Airtel (-1.60%)
Adani Enterprises (-0.81%)
Eicher Motors (-0.53%)
SBI Life (-0.20%)
Sectorally, all indices ended in the green as media, realty, auto, power, PSU, pharma, metal and consumer durables gained between 1–2%.
The top sectoral gainers were:
Metal (+2.06%)
Consumer Durables (+1.75%)
Oil & Gas (+1.72%)
Media (+1.62%)
IT (+1.46%)
A series of stock-specific developments added to the day’s excitement:
Jayant Infratech gained 5% after winning a ₹161.68 crore contract.
NCC rose 1.2% following a massive ₹2,062 crore order win.
Thermax advanced nearly 2% after securing a ₹580 crore order.
SMS Pharmaceuticals rallied 18% after USFDA approval for reformulated Ranitidine.
IIFL Finance climbed 2.6% after raising ₹2,000 crore via NCDs.
Hi-Tech Pipes rose 3% on commencing commercial production at Sanand, Gujarat.
Nelco, Indraprastha Gas, Zydus Lifesciences, and MCX all saw healthy gains triggered by regulatory approvals and strategic partnerships.
More than 100 stocks hit fresh 52-week highs, including Axis Bank, Reliance Industries, GMR Airports, SBI, L&T, Hero MotoCorp, Bank of India, and Max Financial Services.
Technical analysts noted that Nifty above 26,200 reflects a decisive recovery after retracing losses from the previous three sessions.
The rebound from the 20-DEMA confirms continued buying strength.
Experts now believe the index faces immediate resistance at 26,300–26,500, while support remains firm at 25,800–26,000.
As long as these lower levels hold, analysts recommend a buy-on-dips strategy.
India VIX dropped 2.24% to 11.97, indicating reduced market fear and stronger bullish undertone.
Global markets offered strong support to India’s surge.
Key indices showed positive trends:
Stoxx Europe 600: +0.4%
S&P 500 futures: +0.3%
Nasdaq 100 futures: +0.3%
MSCI Asia-Pacific: +1.4%
MSCI Emerging Markets Index: +1%
These gains came as US Fed officials signalled that monetary policy is “modestly restrictive”, leaving room for a near-term rate cut. Markets now assign a nearly 60% probability to a 25 bps Fed cut in December.
Lower interest rates in the US enhance liquidity flows into emerging markets, benefiting Indian equities — an important catalyst behind today’s move.
Market experts believe the benchmark indices are now just one catalyst away from scaling new lifetime highs. With Nifty above 26,200 and momentum building steadily, analysts have outlined five major triggers for Nifty that could set off the next phase of the bull rally.
Investor sentiment has strengthened significantly after comments from US Fed officials hinted at the possibility of a December rate cut.
A lower interest-rate environment typically boosts global liquidity and risk appetite, leading to higher inflows into emerging markets such as India. Analysts say that if the Federal Reserve confirms a 25 bps cut, it could unlock immediate upside for Indian equities, especially across IT, financials and large-cap growth stocks.
Equity markets across Asia, Europe and the US have rebounded sharply, creating a favourable backdrop for Indian markets.
The rally in global indices such as the S&P 500, Nasdaq, MSCI Asia Pacific and MSCI Emerging Markets Index has reinforced confidence that the global risk cycle is turning positive again.
This global tailwind is one of the strongest five major triggers for Nifty to approach and surpass its previous record levels.
Brent crude prices have fallen sharply, dropping toward the $62 range, driven largely by hopes of progress in a Russia–Ukraine peace agreement.
A sustained fall in crude prices benefits India — the world’s third-largest oil importer — by reducing inflationary pressure, lowering the import bill, improving the current account balance and supporting corporate margins.
This macro boost is expected to play a direct role in lifting the Nifty toward fresh highs.
After months of volatility, foreign institutional investors (FIIs) have begun turning net buyers, supported by stabilising US bond yields and easing global uncertainty.
Renewed FII inflows enhance liquidity and trigger strong buying in index-heavy sectors such as banking, IT, energy and autos.
If FII sentiment continues to improve, analysts believe it will act as a powerful upward force among the five major triggers for Nifty.
One of the most encouraging signals for the market is the broad-based rally across sectors — from metals and power to financials, energy, auto, realty and IT.
Midcaps and smallcaps have also shown strong momentum.
Analysts point out that corporate earnings, particularly for FY27, are expected to see strong double-digit growth, indicating that the earnings bottom may already be behind us.
This improvement in fundamentals forms a critical part of the five major triggers for Nifty to break through its all-time high.
Reports suggesting potential progress toward a Russia–Ukraine peace framework have pushed crude oil prices lower and improved global stability expectations. If diplomatic progress continues, markets may witness a further boost in risk appetite — a development that could decisively help Nifty cross into new record territory.
The RBI meets from December 3–5, and expectations are rising that a rate cut may arrive sooner than anticipated.
RBI Governor Sanjay Malhotra recently noted that there was room to reduce rates, creating anticipation ahead of the December policy.
A rate cut would lift interest-sensitive sectors like banking, auto, real estate and NBFCs, accelerating the ongoing market rally.
Foreign investors were net buyers of ₹785 crore, while domestic institutions purchased ₹3,912 crore.
Though FIIs remain net sellers for 2025, renewed global optimism could reverse this trend.
Analysts note that if US bond yields remain stable, FII flows may stay positive — a critical factor for sustaining Nifty’s rally.
The Indian rupee ended Wednesday’s session almost unchanged at 89.23 against the US dollar, slipping just 1 paisa in a largely range-bound trade. The currency found support from strong domestic equities and easing crude oil prices, which helped cushion the impact of a firmer US dollar index. Analysts noted that steady market sentiment and softer crude kept volatility in check, allowing the rupee to hold its ground despite global currency pressures.
Market strategists believe fundamentals point toward an eventual breakout:
Strong FY27 earnings projections
Progress on an India–US trade deal
FII sentiment turning favourable
Cooling crude oil
Global monetary easing cycle
Experts advise focusing on large-caps and quality mid-caps, while smallcaps remain overvalued.
If Nifty sustains above 25,800, analysts expect an immediate rally toward 26,500–26,700, possibly in staged movements.
For now, Nifty above 26,200 reflects a decisive bullish comeback — and the markets may only be a single catalyst away from rewriting record highs.
Securities in Ban:
No record found
No stock was placed under the F&O trading ban on the NSE today, as none of the securities breached the market-wide position limit (MWPL). However, several counters are nearing the threshold and could potentially enter the ban list if positions increase further. Stocks such as Bandhan Bank, CONCOR, HFCL, IRCTC, Sammaan Capital, LIC Housing Finance, Idea, RBL Bank, Glenmark, NMDC, Crompton, Aditya Birla Capital, and Inox Wind are currently trading at elevated MWPL levels ranging from 80% to over 120%. Meanwhile, there were no stocks lined up for exit from the ban list today.
Nifty climbed above 26,200 primarily due to a combination of strong global market momentum, renewed expectations of a US Federal Reserve rate cut in December, and widespread buying across domestic sectors. Positive sentiment in US and Asian indices, along with a fall in crude oil prices and improving risk appetite in emerging markets, helped Indian equities rebound sharply after a three-day losing streak.
Following the surge, Nifty is less than 100 points away from its lifetime high, while the Sensex is fewer than 400 points short of its own record. This narrow gap between current levels and previous peaks highlights strong bullish sentiment in the market and suggests investors expect further upward movement if global and domestic triggers remain favourable.
The rally was led by sectors such as metals, oil & gas, IT, consumer durables, private banking and realty. These sectors outperformed due to falling crude oil prices, stable bond yields, optimism around global liquidity, and strong institutional buying. Sector-specific triggers such as order wins, regulatory approvals, and improving earnings visibility also played a role in lifting the broader indices.
Crude prices dropped sharply on renewed hopes of progress toward a Russia–Ukraine peace agreement, easing inflation concerns for India, a heavy oil importer. Lower oil prices reduce macroeconomic pressure, improve corporate profit margins, strengthen the rupee, and support overall market sentiment. This relief contributed significantly to Nifty’s strong move above 26,200.
Markets reacted positively to comments from the US Federal Reserve hinting at a possible rate cut in December. A lower interest-rate environment enhances global liquidity, reduces bond yields, and makes emerging markets more attractive for foreign investors. This increased risk appetite contributed to strong FII flows and positioned Nifty for a decisive climb above 26,200.
FIIs turned net buyers on the same day, supported by easing global yields and improving global risk sentiment. Their fresh buying boosted heavyweight sectors like banking, IT, and energy—critical components of the Nifty index. Even though FIIs have been net sellers for much of the year, recent inflows have helped the market recover swiftly, pushing Nifty above 26,200.
Technical analysts highlight that Nifty’s rebound from the 20-DEMA and its strong closing near the day’s high signal a continuation of the uptrend. A decisive move above 26,300–26,500 could trigger a breakout to fresh records. Meanwhile, support remains firm at 25,800–26,000. Lower India VIX levels indicate reduced volatility, strengthening the case for further upside.
The IPO market witnessed strong action on Friday as Meesho, Aequs, and Vidya Wires entered…
ITC Hotels witnessed one of its biggest trading sessions in recent months as a massive…
In a major monetary policy move, the Reserve Bank of India (RBI) delivered a 25…
Indian Rupee Weakness Persists, but Analysts See Undervaluation Creating a Long-Term Opportunity The Indian rupee’s…
Sensex Slides from Day’s High as Nifty Ends Below 26,050: Five Key Reasons Behind the…
Cigarette Prices May Edge Higher Under New Excise Bill, but Analysts Expect Only Mild Impact…
This website uses cookies.