Nifty opens at new all-time high as strong GDP numbers lift market sentiment

MUMBAI: The domestic stock market started the week on a strong note as the Nifty 50 index opened at a new all-time high on Monday.

The sharp rise came after India’s strong GDP numbers boosted investor confidence and lifted expectations of a possible rate cut by the Reserve Bank of India (RBI).

The Nifty 50 index opened at 26,325.80, marking a gain of 122.85 points (0.47 per cent). The BSE Sensex also began the session on a positive note, opening at 86,065.92, up 359.25 points (0.42 per cent).

On Thursday, last week, both indices also scaled new lifetime peaks.

Market experts said the blockbuster GDP data has provided substantial support to the indices, raising hopes that the RBI may consider a 25 basis points rate cut in its upcoming policy meeting.

Ajay Bagga, Banking and Market Expert, said that Indian markets were expected to see a strong opening due to the “stellar Q2 FY2026 GDP numbers, which came in at a blockbuster 8.2 per cent level.”

He explained that with “zero level WPI and low CPI,” the GDP deflator stands at 0.5 per cent, pushing the nominal GDP to 8.7 per cent, which remains below what the Union Budget calculations require for India’s economic targets.

Bagga added that the RBI MPC, meeting from December 3rd to 5th, may look at a 25 basis points rate cut to support further economic growth.

He also commented on the political climate, noting that the Winter Session of Parliament begins today and may see “total disruption by the opposition,” though the government is still expected to pass key reform bills due to its majority. He further pointed out that the rupee had weakened because of bulk dollar payments made by oil importers toward the end of the month.

In the broader market, major indices also showed strength. The Nifty 100 gained 0.35 per cent, the Nifty Midcap index rose 0.37 per cent, and the Nifty Small Cap index jumped 0.65 per cent, reflecting widespread positive sentiment across market segments.

Sectoral performance on the NSE was also largely positive. Nifty Auto gained 0.53 per cent, Nifty IT was up 0.48 per cent, and metals advanced more than 1 per cent. Nifty Pharma rose 0.23 per cent, Nifty PSU Bank climbed 1 per cent, and Nifty Realty gained 0.19 per cent, indicating broad-based buying across key sectors.

Sunil Gurjar, SEBI-registered analyst and Founder of Alphamojo Financial Services stated, “The Nifty 50 performed well, surging by +134 points despite trading flat in earlier sessions. Overall, the Nifty 50 is looking the strongest out of all sectors, reaching towards its All-Time High (ATH) of 26,264. It is currently in a tight range; a breakout above this resistance would indicate a continuation of the uptrend. Technically, the price trading above all key moving averages further signals more upward momentum in the sector.”

Globally, markets are watching US retail sales over the Thanksgiving weekend for clues about the strength of the American consumer, a major driver of the world economy. Oil prices have risen following the OPEC+ decision not to hike production in Q1 2026, while gold and silver, which strengthened late last week, continue to trade firm.

With upbeat domestic data, sector-wide gains, and positive global cues, investor sentiment remains strong as markets head into the new trading week. (ANI)