Indian equities ended on a strong note, with the Nifty 50 closing at 25,891.40 and the Sensex at 84,556.40. Both benchmarks touched fresh 52-week highs, moving closer to their lifetime peaks amid renewed investor confidence, steady foreign inflows, and expectations of robust corporate earnings in the coming quarters.
The Nifty 50 touched an intraday high of 26,099, just 0.7% shy of its record peak, while the Sensex surged nearly 800 points to hit 85,272.40, only 0.8% below its all-time high.
Investor sentiment was further buoyed by expectations of strong festive-season demand, recent tax reductions, and supportive policy measures aimed at boosting corporate profitability in the second half of FY26.
Adding to the optimism was growing buzz around a potential India–U.S. trade deal. Reports suggest the two nations are nearing an agreement that could slash tariffs on Indian exports to the U.S. from about 50% to 15–16%, potentially strengthening India’s export outlook.
Commenting on the development, V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said:”If the reported 15–16% tariffs on Indian exports to the U.S. materialise, it would be a big positive for the Indian economy and provide a major boost to stock markets. The ongoing festival-season rally is likely to accelerate, enabling the Nifty to set new record highs.”Another key driver of the rally was a shift in stance by Foreign Institutional Investors (FIIs). After months of persistent outflows, FIIs turned net buyers in October, investing over Rs 1,385 crore in Indian equities so far this month. This marked a sharp turnaround from September’s pullback of Rs 22,761 crore and even heavier selling in August and July.
Vijayakumar added, “FIIs turning buyers and short covering are factors that could further propel the rally.” He emphasized that improving corporate earnings, supported by record sales, could strengthen the bullish sentiment.
From a technical perspective, analysts observed strong breakout signals. Rajesh Bhosale, Technical Analyst at Angel One Ltd, noted:
“The past month has been remarkable for the markets, with the Nifty rallying from 24,600 to register a fresh calendar-year high of 26,104.”
He highlighted that the Nifty has broken out from a year-long consolidation, forming a classic Cup and Handle pattern, a bullish continuation setup.
“The breakout zone around 25,700 (June swing high) now acts as strong support, while the pattern remains valid as long as Nifty holds above its recent swing low of 24,600. Pattern projections indicate encouraging upside potential, with the golden retracement zone near 29,000 and a pattern target around 30,800, suggesting ample scope for further gains over the medium term,” Bhosale projected.
However, near-term caution was advised by Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities:
“Upside momentum with high volatility continued on Thursday, and Nifty closed the day higher by just 22 points, lacking strength to sustain the highs. The index formed a bearish meeting line candle pattern, which could hint at a short-term reversal. This is not a good sign for bulls, and any weakness from here could confirm the downside pattern.”
Despite this, Shetti noted that the broader trend remains positive:
“The overall near-term trend of Nifty remains bullish. Any confirmation of a negative reversal is likely to trigger a short-term downward correction. Immediate support is placed at 25,700, while a decisive move above 26,100 could open the next upside towards 26,300–26,400 in the near term.”
While short-term resistance levels could create volatility, the broader consensus among analysts remains bullish. With supportive macro triggers, the return of FIIs, and technical breakouts in play, market experts see the Nifty heading towards 30,800 over the medium term, provided key support zones hold.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)