Sensex Crosses 86,000 For First Time, Nifty At Record High; Key Factors Behind Rally On November 27

Sensex, Nifty Scale Fresh Peaks: Indian equity benchmarks traded firmly higher on Thursday, with both the Sensex and Nifty hitting fresh record levels as buying interest strengthened across sectors. Optimism over potential interest rate cuts in the U.S. and India, coupled with strong foreign fund inflows, lifted overall market sentiment.

The Nifty climbed to a new all-time high of 26,306.95, surpassing its earlier record of 26,277.35 set on September 27, 2024. The Sensex also crossed a major psychological milestone, surging past the 86,000-mark for the first time to touch 86,026.18.

At around 10:15 a.m., the Sensex was trading at 85,928.22, up 318.71 points or 0.37 percent, while the Nifty hovered at 26,278.40, up 73.10 points or 0.28 percent.

Market breadth remained positive, with 1,903 stocks advancing, 1,377 declining, and 183 unchanged.

Among Nifty50 stocks, Bajaj Finance, Shriram Finance, Asian Paints, Bajaj Finserv, and Larsen & Toubro emerged as the top gainers, rising up to 2 percent.

What’s Driving the Rally? Key Triggers at Play

Foreign Inflows Strengthen Market Base

Foreign portfolio investors (FPIs) extended their buying streak for the second straight session on Wednesday. They pumped in Rs 4,778.03 crore, following inflows of Rs 785.32 crore on Tuesday. Sustained overseas interest has provided strong support to domestic equities.

According to Dr. VK Vijayakumar of Geojit Investments, the rally is backed by expectations of improved earnings in the second half of FY26, supported by strong October consumption trends. However, he cautioned that elevated valuations may limit a sharp, sustained uptrend.

Rate-Cut Buzz Lifts Sentiment

Markets remained buoyant on growing expectations that the U.S. Federal Reserve could cut interest rates as early as December. Rate-sensitive stocks have gained traction ahead of the upcoming RBI policy review, reinforcing Wednesday’s strongest session in five months for the Nifty.

Supportive Global Cues

Asian equities traded higher as traders raised their bets on a December Fed rate cut. According to the CME FedWatch tool, the probability of a rate reduction has surged to around 85 percent, from 30 percent a week ago. Japan’s Nikkei, South Korea’s Kospi, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng were all trading in the green. U.S. markets also ended higher overnight.

Cooling Crude Prices Aid India

Brent crude slipped 0.48 percent to $62.83 per barrel. Softer oil prices are positive for India as they help reduce import costs and ease inflationary pressures.

IMF Growth Outlook Supports Long-Term View

The International Monetary Fund recently projected that India will reach the $5-trillion economy milestone in FY29, a year later than previously estimated. While the revised timeline reflects rupee weakness and slower nominal growth, the long-term economic outlook remains supportive for equities.

Technical Setup: Upside Intact, But Watch Key Levels

Anand James of Geojit Financial Services said Wednesday’s bullish engulfing pattern leaves room for the Nifty to target the 26,470–26,550 zone. However, he noted that the recent move mainly reversed a four-session decline rather than confirming a strong breakout. The index is expected to hold a positive bias above 26,165, while 26,098 remains a crucial support on the downside.