CHENNAI: Indian equities ended Thursday (November 20) on a firm note, with the benchmark indices extending their upward trend and inching closer to record territory. The Nifty 50 hovered around the 26,200 mark by the close, while the Sensex advanced past 85,600 (up 446 points), supported by steady foreign inflows, upbeat global cues and improving risk appetite across large-cap names.
Much of the momentum flowed in from global markets, where a strong rally in technology stocks—fuelled in part by robust earnings from US chipmakers—lifted sentiment across Asia. That enthusiasm carried over to domestic trade, helping heavyweight sectors such as financials, oil and gas, and autos post moderate gains. Large caps clearly drove the day’s action, even as midcap and smallcap indices delivered a more subdued performance, signalling that participation across the broader market remains uneven.
Investors also responded positively to signs that India’s macroeconomic strength is beginning to align more convincingly with corporate earnings. Analysts noted that the narrative is shifting from one of resilience without profit growth to one where earnings appear to be catching up with the economic backdrop. Added to this was the return of foreign institutional buying, which has a more pronounced impact at a time when global investors had previously reduced exposure to India.
Despite the upbeat finish, market watchers caution that the real test lies just ahead. The Nifty is now within a narrow range of its all-time high, and breaking past that zone—and sustaining above it—will require broader participation as well as continued support from global markets. Concerns around valuation, patchy performance in the broader market and the possibility of sudden shifts in global risk sentiment remain on the radar.
For now, the market mood is constructive, driven largely by momentum and confidence in India’s economic resilience. Whether this rally evolves into a sustained breakout will depend on how earnings progress and how global conditions unfold over the coming weeks.