Indian stock markets hit fresh record levels this morning, extending their upward momentum amid expectations of interest rate cuts in both the US and India. The Nifty 50 crossed its earlier peak of 26,277, set in September 2024, after nearly 14 months and about 289 trading sessions marked by market caution, the lack of a US trade deal, and global geopolitical tensions. Major contributors to the index’s new high included Bharti Airtel, ICICI Bank and Reliance Industries.
The Sensex also broke past last year’s record of 85,978.25, briefly moving above the 86,000 mark.
Despite the milestone, Indian equities have lagged behind other Asian markets due to rich valuations, weak earnings and persistent foreign outflows amid global uncertainty. Investors remained cautious about approaching higher levels until earnings showed signs of improvement. Sentiment shifted as valuations moderated, tax relief came into play and expectations of rate cuts strengthened. Over the past five months, the Nifty delivered one of its strongest phases, supported by growing confidence that the US Federal Reserve and the Reserve Bank of India would lower rates next month.
