SENSEX crosses 86K mark for 1st time, NIFTY50 hits all-time high, breaches 26,300: 5 things you need to know

The NIFTY50 index, the 50-share benchmark index of the National Stock Exchange (NSE), on Thursday, November 27, finally surpassed the previous record high touched in September 2024 to scale an all-time peak of 26,295.55 in the early trade.

The headline index continued its rally and breached the coveted 26,300 level too as the trade progressed. At the time of writing this article, the NIFTY50's all-time high level stood at 26,310.45.

The milestone is crucial, as the index faced resistance numerous times in the past before finally crossing the level.

Last seen, the NIFTY50 index was trading at 26,289.20, up 83.90 points, or 0.32%.

On the BSE, the benchmark S&P BSE SENSEX also hit a fresh record high of 86,013.75, against the previous close of 85,609.51.

Market analysts note that sentiment remains strongly bullish, supporting a buy-on-dips approach. They point to firm global cues, steady domestic institutional inflows, and strength in banking stocks as key drivers of the positive trend.

However, they warn that with indices at record highs, traders and investors should watch crucial resistance levels and manage risk carefully, as volatility could increase in the sessions ahead.

Analysts turning bullish

Analysts at HSBC, Jefferies, and JPMorgan have, of late, turned bullish on Indian equities, citing a combination of strong domestic growth prospects, encouraging corporate earnings, and supportive macroeconomic conditions.

They highlight that India’s economic recovery continues to gain momentum, driven by resilient consumption, infrastructure spending, and favourable policy measures.

Factors such as the GST rate cut, nil income tax up to ₹12,00,000, and lower interest rates are the key factors that the analysts believe would help pump-prime the economy further.

Foreign Institutional Investor (FII) inflows have recovered, providing additional support to the markets, while domestic institutional investors continue to back fundamentally strong stocks.

Banking and financial services sectors, in particular, are expected to lead market performance, benefiting from improving credit growth and asset quality.

While analysts acknowledge that valuations are elevated and near-term volatility could increase amid global uncertainties, they emphasise that selective, high-quality opportunities in large-cap and growth-orientated sectors make a compelling case for a buy-on-dips strategy.

Overall, HSBC, Jefferies, and JPMorgan view the Indian equity market as structurally attractive, with long-term prospects underpinned by favourable demographics, rising consumer demand, and ongoing reforms aimed at boosting productivity and investment.

Robust corporate earnings

India Inc’s second-quarter FY26 earnings season delivered a stronger-than-expected performance, bolstered by robust showings across key sectors and mid-caps, even as select small-cap pockets softened. Analysts noted that, for the first time in several quarters, earnings upgrades outpaced downgrades, reflecting rising confidence in corporate profitability.

The performance underscores broad-based demand resilience across sectors. Many companies delivered extraordinary profit growth — in some cases, more than 100 times the previous year’s levels. The analysis includes companies with a market capitalisation above ₹1,000 crore, analysts note.

"According to Emkay Global’s Seshadri Sen, earnings momentum gathered pace in the quarter. “The BSE500 posted 15.5% YoY profit growth in Q2FY26 versus 11.1% in Q1FY26, with Energy (41%), Materials (40%), and Consumer Discretionary (20%) leading the improvement," he said. Emkay retains its September 2026 Nifty target of 28,000," said a news report.

India-US trade deal

Another factor why Indian stocks hit a record high is the optimism around the India-US trade deal.

According to a PTI report in November 2025, the first phase of the proposed India-US bilateral trade agreement (BTA) is 'nearing closure' and would address the hefty 50% tariffs imposed by the Trump administration on Indian goods, in addition to resolving America's market access issues.

The US has imposed a 25% reciprocal tariff and another 25% on Indian goods entering American markets for buying Russian crude oil.

"We are engaged with the US on the BTA. It has two parts. "One part of the negotiations will take time. The other part is a package which can address reciprocal tariffs. We are working on both aspects. The package that can address reciprocal tariffs is more or less near closure, and we should get it soon," the official said.

The official added that the deal is expected to address the issue of a 25% penalty on India; otherwise, the agreement would have no meaning.

India's GDP growth projection encouraging

India's GDP growth is expected to reach 7.5% or more in the second quarter of the current fiscal year, mainly driven by robust festive sales triggered by the GST rate cut in late September, an SBI research report said on Tuesday.

Growth is being supported by a pickup in investment activities, recovery in rural consumption, and buoyancy in services and manufacturing, underpinned by structural reforms like GST rationalisation, which also helped unleash a festive spirit that decisively showcased the triumph of hope over hype, it said.

Moreover, India Ratings and Research (Ind-Ra) recently raised India's GDP growth projection for the current fiscal year to 7% on the back of high growth in the June quarter and less impact of the US tariff hike on global growth and trade.

Ind-Ra expects GDP in FY26 to grow 7% year-on-year (YoY), 70 basis points higher than its earlier forecast of 6.3% (projected in July 2025), the rating agency said in a statement.

The RBI has projected India's GDP growth in the current fiscal year at 6.8%, better than the 6.5% expansion in the last fiscal year.

Besides, Chief Economic Advisor V. Anantha Nageswaran on November 25 said the size of the Indian economy is expected to cross $4 trillion in the current fiscal year.

He said with the geopolitics in a "huge state of flux", economic growth is a very vital prerequisite to maintain India's standing and leverage in the global scheme of things.

India currently is the fifth largest economy in the world with a GDP of around $3.9 trillion.

Consistent buying in blue-chip stocks

The consistent buying in index heavyweights such as RIL, M&M, State Bank of India, and Maruti has contributed significantly to headline indices hitting all-time highs.

Data show that these stocks have rallied up to over 42% year-to-date (YTD).

NIFTY to hover near 30,000 by 2026-end?

Analysts at Macquarie said that they still expect a moderation in earnings expectations over the next 1-2 quarters; for the market overall, they believe the balance of risk has tilted favourably, with NIFTY more likely to end 2026 closer to 30K than 20K levels.