D-Street Nears Historic Highs, Nifty, Sensex Soar 1.2% In Just One Day – Key Reasons Behind Rally

Indian equities staged a powerful surge on November 26, with benchmark indices climbing more than 1.2% and inching close to their historic peaks. The rally was broad-based, fuelled by strong global cues, easing macro concerns, and renewed confidence that the US Federal Reserve may pivot to rate cuts as early as December.

By the close, the Sensex had vaulted 1,022.50 points, or 1.21%, to finish at 85,609.51, while the Nifty50 advanced 320.50 points, or 1.24%, to settle at 26,205.30. Market breadth was decisively positive, with 2,723 stocks gaining, 1,286 declining, and 141 remaining unchanged — signalling solid participation across segments.

Key growth levers

A key driver of the upmove was fresh data from the US that suggested cooling demand. US consumer confidence registered its sharpest monthly decline since April, while retail sales showed only a mild uptick for September. These delayed data releases reinforced expectations that the Fed may opt for a rate cut despite Chair Jerome Powell’s earlier caution that such a shift was not guaranteed. The prospect of lower global rates revived risk appetite and lifted equities across emerging markets, including India.

Also Read: Indian Stock Market: Sensex, Nifty 50 Open Higher On Fed Rate Cut Optimism | Republic World

Back home, all sectoral indices ended in the green. Metals led from the front with gains exceeding two percent, supported by improved global sentiment. Banks, consumer durables, and oil and gas counters also logged firm advances, while IT and private banks added over one percent, reflecting interest in both rate-sensitive and export-driven pockets. Defensives such as auto, pharma, healthcare, FMCG and realty also closed with healthy gains, underscoring the depth of the rally. PSU banks and broader financials delivered more measured but steady upticks.

With Monday’s surge, the Nifty has convincingly reclaimed the 26,200 mark — a key resistance zone. Analysts note that sustaining above this level improves the index’s chances of revisiting the record highs it scaled in September 2024, while the Sensex now stands barely 350 points away from its own lifetime peak.

Market participants expect bouts of volatility ahead but maintain that strong macro fundamentals and supportive global cues could keep sentiment buoyant in the near term.