Backed by robust investor sentiment, improving macro fundamentals, and a brightening earnings outlook, along with positive global cues, the Indian stock market remained firm for the third straight month in November, putting the key indices on track to extend their yearly winning streak to a tenth year.
Although the markets began the month on a weak note, they regained momentum in the second week and sustained it through the end of November, which helped both the Nifty 50 and the Sensex reach fresh record highs after a gap of 14 months.
The Nifty 50 surged to a new lifetime high of 26,310 on Thursday and closed the month with a gain of nearly 2%, while the Sensex finished the month higher by 2.11%, also registering a fresh peak of 86,055 points.
Global brokerages turn bullish
Market sentiment has improved in recent months amid an earnings recovery that eased valuation concerns, along with recent policy measures announced by both the RBI and the government. These developments have strengthened expectations that the earnings rebound will continue in the coming quarters as well.
Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said, “The consumption boom witnessed in October will translate into impressive earnings growth. If the trend sustains, even with slight moderation after the festival season, earnings growth, going forward, will be good, warranting a rally in the market.”
This improving backdrop has not only boosted domestic sentiment but has also led global brokerage firms to turn bullish on the Indian stock market. JP Morgan recently raised its base-case target for the Nifty 50 to 30,000 by the end of 2026.
Earlier, Goldman Sachs upgraded India to “Overweight” on November 10, 2025, setting a Nifty 50 target of 29,000 by end-2026. HSBC and Morgan Stanley have also turned bullish on the Indian market.
FPIs show renewed optimism
While higher US tariffs on Indian imports remain a key overhang for overseas investors, concerns have eased somewhat as trade negotiations between the two nations have warmed up.
At the same time, the sharp rally in other Asian markets, largely powered by the AI and chip stocks, has made valuations there appear unsustainable, prompting FPIs to reallocate capital toward opportunities in Asia’s third-largest economy.
Though they resumed the selling streak in the first half of November, sentiment shifted in the second half as FPIs emerged as net buyers on multiple occasions. So far in November, they have pulled out ₹13,704 crore.
Furthermore, global cues such as strengthening expectations of a US Federal Reserve rate cut, an easing US dollar index, and a sustained drop in crude oil prices also aided the rally.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
