opened sharply higher on Monday, with both benchmark indices scaling new peaks as traders responded positively to India’s robust 8.2 per cent growth in the second quarter and growing expectations of a rate cut by the Reserve Bank of India.
The opened at 86,065.92, up from its previous close of 85,706.67, and touched a high of 86,159.02 before trading at 86,008.66, a gain of 301.99 points or 0.35 per cent. The opened at 26,226.95 against a previous close of 26,202.95, hitting a high of 26,325.80 and currently trading at 26,288.80, up 85.85 points or 0.33 per cent.
“The stronger-than-expected second-quarter GDP print has provided a meaningful sentiment boost by easing concerns over the potential drag from U.S. tariffs,” said Ponmudi R, CEO of Enrich Money. “However, persistent FII outflows and continued weakness in the Indian rupee against the U.S. dollar remain key pressure points for equities.”
The National Statistics Office’s report showing 8.2 per cent year-on-year expansion in real GDP for Q2 FY26 was led by a 9.1 per cent increase in manufacturing output and a 9.2 per cent rise in the services sector.
This performance has fuelled speculation that the may announce a 25-basis-point rate cut in its upcoming policy meeting on December 5.
Among the top gainers on the Nifty50, Adani Ports led with a 1.93 per cent rise to ₹1,546.20, followed by Eicher Motors up 1.58 per cent at ₹304.85, Kotak Mahindra Bank gaining 1.28 per cent to ₹2,151.60, JSW Steel rising 1.22 per cent to ₹1,174.50, and JSW Steel up 1.06 per cent at ₹989.40.
On the losing side, ITC declined 0.96 per cent to ₹400.35, Tata Consumer Products fell 0.83 per cent to ₹1,162.70, Bajaj Finance dropped 0.58 per cent to ₹1,031.50, Titan Company shed 0.53 per cent to ₹3,886.80, and Asian Paints eased 0.47 per cent to ₹2,860.80.
“Nifty has broken above the key resistance near 26,300, indicating renewed strength,” said Ponmudi R. “A strong hold above this level can push the index toward 26,350–26,500.”
Bank Nifty demonstrated particular strength, crossing the historic 60,000 mark for the first time during the session. The banking index ended the previous week at 59,752, outperforming the broader market with gains of over 1.5 per cent.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, cautioned that while indices are hitting new records, “for most retail investors, their portfolio values are lower than those at the previous peak of September 2024.” He noted that 330 stocks in NSE 500 remain below their September 2024 peak, highlighting the narrow nature of the current rally.
Market participants are now focused on the RBI’s monetary policy decision this Friday and November automobile sales data expected today. “Auto stocks will be in focus as November sales data from major automobile manufacturers is set to be released today,” said Ponmudi R.
The financial services sector emerged as the standout performer, rallying over 2.25 per cent last week, while pharma and PSU banks also attracted strong buying interest. However, the defence index and PSU index lagged the broader market.
Foreign institutional investors continued their selling spree, offloading equities worth ₹3,796 crore on Friday, while domestic institutional investors provided support with purchases of ₹4,148 crore.
“Robust domestic institutional buying, coupled with rising expectations of a 25-bps rate cut in this week’s RBI policy meeting, is likely to lend solid support to the broader market and cushion downside risks,” said Ponmudi R.