Nifty & Sensex Set for a Positive Start as Global Markets Rally

Pre-Market Update at 7:40 AM: Indian equity benchmark indices are expected to open higher on Thursday, November 27, supported by firm global cues. Trends on the GIFT Nifty indicated a positive start, with the index trading 51 points higher at 26,440 around 7:26 AM. Asian markets opened higher, mirroring gains in U.S. indices as expectations for interest-rate cuts by the U.S. Federal Reserve continued to strengthen.

Indian equities rebounded sharply on Wednesday after three consecutive sessions of losses. The Nifty climbed to 26,205, coming close to its record level and posting its strongest single-day rise in five months. Market sentiment remains supported by expectations of improved Q3 demand, higher capex activity and the possibility of rate cuts from both the RBI and the U.S. Fed, which could help the indices move beyond previous highs.

Foreign Institutional Investors were net buyers on Wednesday, purchasing equities worth Rs 4,778.03 crore, while Domestic Institutional Investors added Rs 6,247.93 crore, marking their 24th straight session of inflows. The Sensex rose more than 1,000 points to close at 85,609.51, and the Nifty gained over 300 points to end at 26,205.30. 

Key contributors included HDFC Bank, Reliance Industries, ICICI Bank and Infosys. Sentiment improved due to expectations of a possible U.S. Fed rate cut in December, optimism around a potential US–India trade agreement, strong FII inflows and a decline in crude oil prices triggered by reports of a revised Ukraine–Russia peace proposal.

All sectoral indices ended higher, with Nifty Metal rising over 2 per cent and Nifty Energy gaining 1.74 per cent. The Nifty Midcap and Small-Cap 100 indices registered gains of more than 1 per cent, marking their best single-day performance since early September.

U.S. markets continued their upward momentum on Wednesday, supported by renewed buying in technology stocks and rising expectations of a December rate cut. The Dow closed at 47,427.12, gaining 314.67 points or 0.67 per cent. The S&P 500 settled at 6,812.61, up 46.73 points or 0.69 per cent, while the Nasdaq added 189.10 points or 0.82 per cent to close at 23,214.69.

The dollar index fell below 99.5, marking its fourth straight decline and touching its lowest level in nearly two weeks, driven by expectations of further monetary easing by the U.S. Federal Reserve. Gold prices held steady after recently touching a one-week high, with spot gold trading at USD 4,149.73 per ounce, down 0.31 per cent, as markets evaluated the likelihood of a December U.S. rate cut amid mixed Federal Reserve commentary.

Crude oil prices declined, with Brent futures slipping below USD 63 per barrel and WTI approaching USD 58 per barrel, partially reversing gains from the previous session. The decline came as investors awaited clarity on global supply conditions amid ongoing Russia–Ukraine peace discussions. A US presidential envoy is scheduled to visit Russia next week for talks, and any breakthrough could potentially ease sanctions on Russian crude, though analysts expect that even with an agreement, supply increases would take time.

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Disclaimer: The article is for informational purposes only and not investment advice.