Record-Breaking Start for Indian Stock Market
The Indian stock market began the week with historic momentum as the Nifty 50 index opened at a fresh all-time high of 26,325.80 on Monday, December 1, 2025. This remarkable surge of 122.85 points came on the back of exceptionally strong GDP numbers that have significantly boosted investor confidence across the board.
The BSE Sensex followed suit, opening strongly at 86,065.92 with a gain of 359.25 points, continuing the bullish trend that saw both indices scaling new lifetime peaks just last Thursday. The market's record-breaking performance reflects growing optimism about India's economic trajectory.
GDP Data Fuels Market Optimism
Market experts attribute this bullish sentiment directly to India's blockbuster Q2 FY2026 GDP growth of 8.2%, which has exceeded expectations and provided substantial support to equity indices. The stellar economic performance has raised hopes that the Reserve Bank of India might consider a 25 basis points rate cut in its upcoming policy meeting scheduled from December 3rd to 5th.
Banking and market expert Ajay Bagga explained to ANI that the combination of zero-level WPI and low CPI has resulted in a GDP deflator of just 0.5%, pushing the nominal GDP to 8.7%. However, he noted that this figure still remains below what the Union Budget calculations require for achieving India's broader economic targets.
Broad-Based Market Strength
The market rally displayed remarkable breadth across various segments. The Nifty Midcap index rose 0.37% while the Nifty Small Cap index jumped 0.65%, indicating widespread positive sentiment beyond just the large-cap stocks. The Nifty 100 also registered a healthy gain of 0.35%, confirming the broad-based nature of the market upmove.
Sectoral performance on the National Stock Exchange painted an equally optimistic picture:
- Nifty Auto gained 0.53%
- Nifty IT advanced 0.48%
- Metals sector surged more than 1%
- Nifty PSU Bank climbed 1%
- Nifty Pharma and Nifty Realty also posted gains of 0.23% and 0.19% respectively
Technical and Global Factors Support Rally
SEBI-registered analyst Sunil Gurjar, Founder of Alphamojo Financial Services, provided technical perspective, noting that Nifty 50 surged by 134 points despite trading flat in earlier sessions. He emphasized that the index is currently trading above all key moving averages, signaling strong upward momentum. The technical setup suggests that a breakout above the resistance level of 26,264 could indicate continuation of the uptrend.
Globally, markets are closely monitoring US retail sales data from the Thanksgiving weekend for insights into American consumer strength, which remains a crucial driver of the global economy. Meanwhile, oil prices have risen following OPEC's decision not to hike production in Q1 2026, while gold and silver continue to trade firm after strengthening late last week.
Bagga also commented on the political landscape, noting that the Winter Session of Parliament begins today and might witness disruptions from the opposition. However, the government is still expected to pass key reform bills due to its majority. He further observed that the rupee had weakened due to bulk dollar payments made by oil importers toward the month's end.
With upbeat domestic economic data, sector-wide gains, and supportive global cues, investor sentiment remains strongly positive as markets progress into the new trading week, setting the stage for potential further gains if the momentum sustains.
