The Indian equity benchmark Nifty 50 surged to a new all-time high on Thursday morning, ending a prolonged 14-month period of subdued performance and consolidation. This decisive move was driven by a combination of renewed bullish sentiment, expectations of a significant corporate earnings revival, and supportive global market cues.
New All-Time Highs Reached
In early trade on Thursday, the Nifty 50 registered a new peak, officially surpassing its previous lifetime record set in September 2024.
- Nifty 50: The index touched 26,285.95, gaining 80.65 points (0.31%). Crucially, it breached its previous all-time high of 26,277.37 achieved 14 months ago, confirming a strong upward momentum.
- BSE Sensex: The Sensex also rallied sharply, hitting an intraday high of 85,843.82, inching very close to its September 2024 record of 85,978.25.
- Opening: Both benchmarks extended Wednesday’s gains, with Nifty opening at 26,261.25 and Sensex opening at 85,741.13.
Key Drivers of the Rally
Market experts point to several fundamental and technical factors driving the resurgence of investor confidence:
- Earnings Outlook: Analysts expect corporate earnings to strengthen further in the second half of Fiscal Year 2026 (H2 FY26), continuing the strongest revival seen in over a year. This optimism is fuelled by benign inflation, recovering consumption, and supportive fiscal and monetary policies.
- Cooling Valuations: The Nifty is now trading at 22.3x–22.7x forward earnings. This is a drop from the elevated 23x–25x levels seen a year ago, making Indian equities more attractive to investors.
- Technical Breakout: Ponmudi R, CEO of Enrich Money, noted that the Nifty’s chart remains favorable, with the index “consistently formed higher-low patterns, confirming that the broader trend remains bullish.” A sustained close above the previous peak (26,277) could pave the way for a move towards 26,350–26,500 and potentially 27,000.
- Strong Domestic Flows: The market has been buoyed by the resilience of domestic institutional participation. Mutual fund inflows and record-high Systematic Investment Plan (SIP) contributions have provided a crucial cushion against foreign portfolio flow volatility.
- Supportive Global Cues: Asian markets traded higher on Thursday, spurred by mounting expectations of interest rate cuts by the US Federal Reserve in the near future. This positive global sentiment, following uptrends in US markets overnight, further lifted Indian indices.
Ajay Bagga, a banking and market expert, commented that the Indian markets are “well-positioned to reclaim the all-time highs hit in September 2024,” adding that such a breakout after a long consolidation phase often leads to strong 12-month returns.