Indian Markets Continue Winning Streak
The Indian stock market demonstrated remarkable resilience throughout November, maintaining its upward trajectory for the third consecutive month. This sustained performance has positioned the key indices to potentially extend their annual winning streak to an impressive tenth year.
Backed by strong investor sentiment, improving macroeconomic fundamentals, and a brightening earnings outlook, the markets shrugged off initial weakness to finish the month on a powerful note. Positive global cues further fueled the rally, creating perfect conditions for growth.
Record-Breaking Performance
After beginning November on a somewhat subdued note, the markets gathered significant momentum during the second week and maintained this strength through month-end. This resurgence propelled both the Nifty 50 and Sensex to fresh record highs after a gap of fourteen months.
The Nifty 50 surged to a new lifetime high of 26,310 on Thursday, ultimately closing the month with a solid gain of nearly 2%. Meanwhile, the Sensex finished November higher by 2.11%, registering its own fresh peak at 86,055 points.
Global Brokerages Turn Bullish
Market sentiment has seen substantial improvement in recent months, driven by an earnings recovery that has alleviated previous valuation concerns. Recent policy measures announced by both the Reserve Bank of India and the government have further strengthened expectations that the earnings rebound will continue in upcoming quarters.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments, commented: "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 confidence but has also prompted global brokerage firms to adopt increasingly bullish positions on Indian equities. JP Morgan recently raised its base-case target for the Nifty 50 to 30,000 by the end of 2026.
Other major financial institutions have followed suit. Goldman Sachs upgraded India to "Overweight" on November 10, 2025, setting a Nifty 50 target of 29,000 by end-2026. Both HSBC and Morgan Stanley have also turned positive on the Indian market.
Foreign Investors Show Renewed Optimism
While higher US tariffs on Indian imports remain a concern for overseas investors, these worries have eased somewhat as trade negotiations between the two nations have shown signs of warming relations.
Concurrently, the sharp rally in other Asian markets, largely driven by AI and chip stocks, has made valuations in those regions appear unsustainable. This valuation gap has prompted Foreign Portfolio Investors (FPIs) to reallocate capital toward opportunities in Asia's third-largest economy.
Though FPIs resumed their selling streak in the first half of November, sentiment shifted noticeably in the second half as they emerged as net buyers on multiple occasions. So far in November, FPIs have pulled out ₹13,704 crore, but the trend appears to be reversing.
Additional global factors supporting the rally include strengthening expectations of a US Federal Reserve rate cut, an easing US dollar index, and a sustained drop in crude oil prices. These elements have collectively created a favorable environment for continued market growth.
