The Indian stock market witnessed a historic surge on Monday, with both the Sensex and Nifty scaling new record highs. This solid performance was primarily driven by the release of stronger-than-anticipated second-quarter Gross Domestic. Product (GDP) figures on Friday, which showed growth exceeding 8 percent, Notably outperforming market estimates. The positive economic data instilled confidence among investors, resulting in a substantial gain. Of over ₹3 lakh crore in market wealth during the initial trading hours.
Indian Market Reaches Unprecedented Levels
On the first trading day of the month, the Indian stock market opened with remarkable momentum. The Bombay Stock Exchange's (BSE) benchmark index, Sensex, climbed by 452. 35 points, reaching a new all-time high of 86,159. 02. By 9:45 AM, the Sensex was trading at 86,022. 65, up by 306. 09 points, while the index had opened at 86,065. 92, contrasting with its marginal decline to 85,706. 67 on Friday's close. This upward trajectory underscores the market's strong reaction to positive economic indicators and investor optimism regarding future growth prospects.
Nifty Also Achieves New Milestones
The National Stock Exchange's (NSE) flagship index, Nifty, mirrored Sensex's impressive performance, also hitting a new lifetime record. The Nifty surged by approximately 123 points to reach 26,325. 80. As of 10:50 AM, the Nifty was trading at 26,290, while 65, up by about 88 points. The index had opened at its record level of 26,325. 80. On Friday, the Nifty had closed with a slight gain at 26,202. 95. The broad-based rally in Nifty indicates widespread buying interest across various sectors, reflecting a positive market sentiment.
Top Performers and Laggards in the Market
Among the 30-share Sensex pack, several key stocks emerged as top gainers, contributing Importantly to the market's overall ascent. BEL, Tata Motors Passenger Vehicles, SBI, Tata Steel, and HCL Tech each advanced by more than one percent, showcasing strong investor confidence in these companies, while however, not all stocks participated in the rally; Bajaj Finance, ITC, and Titan Company were among the laggards, each experiencing a decline of 0. 2%. The broader market also displayed strength, with Small-cap and Mid-cap indices opening higher by 0. 6% and 0, while 4% respectively, indicating a healthy participation across different market segments.
Impact of Strong GDP Figures
The government's release of second-quarter GDP figures, which exceeded 8 percent, surpassed all forecasts. These solid numbers have Importantly bolstered confidence in domestic demand and reinforced India's position as a standout market, especially at a time when global signals remain uneven. Strong GDP growth is a crucial indicator of a healthy economy, often leading to increased corporate earnings and higher investor returns, thereby driving market rallies.
Overview of International Markets
On Friday, US stock markets saw gains in a shortened post-Thanksgiving session, driven by strength in the retail and tech sectors. The Dow Jones Industrial Average rose by 0. 61% to 47,716. 42, the S&P 500 by 0. 54% to 6,849. 09, and the Nasdaq Composite by 0, while 65% to 23,365. 69. Hopes for a Federal Reserve interest rate cut in December sustained market sentiment throughout the week. This positive global backdrop often provides a supportive environment for emerging markets like India.
Mixed Trends in Asian Markets
Asian markets began the final month of 2025 with a steady tone, buoyed by optimism for US interest rate cuts ahead of key economic data releases. Investors also factored in the possibility of an imminent interest rate hike in Japan, which strengthened the yen. Outside Japan, MSCI's broadest Asia-Pacific index remained stable at 703. 19, marking a 23. 5% gain year-to-date and its strongest annual performance since 2017. However, Japan's Nikkei index fell by 1, while 3% in early trade, reflecting localized factors.
Commodity Market Dynamics
In early Asian trading on Monday, gold prices dipped by 0. 2% to $4,221. 68 per ounce, retreating from a nearly three-week high as investors took profits despite strong expectations for US interest rate cuts later this month, while meanwhile, silver reached a record high. Crude oil prices, on the other hand, surged by up to 1. 5% on Monday after OPEC+ confirmed plans to cap production increases in the first quarter of next year. Brent crude later pared gains but remained up 0, while 98% at $62. 99 per barrel, and US West Texas Intermediate rose 0. 99% to $59. 12 per barrel. The potential for US action against Venezuela also added to market jitters.
Institutional Investor Activity
On the institutional front, foreign institutional investors (FIIs) were net sellers, offloading shares worth ₹3,795 crore on November 28. Conversely, domestic institutional investors (DIIs) were net buyers, purchasing shares worth ₹4,148 crore. The strong buying by DIIs provided crucial support to the market, helping. To offset the selling pressure from FIIs and maintain the upward momentum.
Rupee's Performance Against the Dollar
On the first day of December, the Indian rupee was observed to be under pressure against the US dollar, while although the rupee opened flat, rising crude oil prices and selling by foreign investors contributed to its subdued performance. Experts suggest that the rupee could experience a sharp decline during the trading session, which could be a concern for importers and potentially impact the broader economy.
