Thursday's advance was largely shaped by macroeconomic tailwinds. File photo
Business

Indian benchmark indices hit fresh records but settle flat-footed on late profit-booking

Both benchmarks scaled fresh all-time intraday highs earlier in the day, with Sensex racing past 86,000 and Nifty climbing near 26,310, before giving up most of those gains as traders booked profits near peak levels.

TNIE online desk

CHENNAI: Indian equity markets closed marginally higher on Thursday (27 November 2025) after a session that oscillated between record-setting momentum and late-day consolidation. The BSE Sensex settled at 85,720.38, rising 110.9 points, while the Nifty 50 ended at 26,215.55, adding 10.3 points. Both benchmarks scaled fresh all-time intraday highs earlier in the day, with Sensex racing past 86,000 and Nifty climbing near 26,310, before giving up most of those gains as traders booked profits near peak levels.

The advance was largely shaped by macroeconomic tailwinds. Investor appetite strengthened on the back of global and domestic expectations of interest-rate easing, particularly the prospect of imminent Federal Reserve and Reserve Bank of India rate cuts. Markets also drew support from improving Indian corporate earnings, indicating early signs of profit recovery after a muted cycle, while softer crude oil and broader commodity prices helped ease input-cost pressures for manufacturers. Financial stocks drove the bulk of headline gains, reflecting a clear bias toward rate-sensitive large-cap plays.

Yet, the rally lacked uniform participation. Mid-caps closed flat and small-caps declined approximately 0.38 percent, underscoring selective risk appetite and lingering concerns around valuations and near-term growth durability outside index heavyweights. Sectoral momentum tilted unevenly, with selling pressure observed in energy, oil and gas, and consumer durables names, reinforcing the impression that the day’s surge owed more to macro sentiment than broad sector-wise fundamental strength.

Market breadth signals and price action near record highs suggest a phase of digestion rather than runaway escalation. With benchmarks now trading at lifetime levels, the next directional impulse is likely to be data-dependent. GDP print and forthcoming macro releases will be closely parsed for evidence that validates current rate-cut narratives and earnings optimism.

An upside continuation may persist if central banks deliver easing cues and domestic growth remains resilient, keeping financials and defensives in focus. However, a reversal in commodity trends or disappointment in growth data could expose the rally’s narrow leadership and weigh harder on cyclicals and small- and mid-cap pockets. For now, flows appear anchored in quality large-caps, disciplined position trimming near highs, and a broader preference for stability over speculative breadth.

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