Mumbai: India’s benchmark stock index, the Nifty 50, was poised to open higher on Thursday, inching closer to an all-time record as investor optimism deepened across sectors. Early trading indicators reflected a bullish tone, signaling renewed market confidence fueled by strong corporate earnings, persistent foreign inflows, and expectations of a favorable trade accord with the United States.
At 7:40 a.m. (IST), Nifty futures were trading around 26,260 points, indicating a likely opening above Tuesday’s close of 25,868.60 just shy of the record high of 26,277.35. The momentum continues a strong five-session rally that has seen both the Nifty 50 and the Sensex advance nearly three percent, led by robust performances from banking majors, Reliance Industries, and auto stocks.
The market’s buoyancy is largely being attributed to improving expectations for corporate earnings in the second half of the fiscal year. Analysts believe India’s festive season, spanning from Dussehra to Diwali, will spur consumption and strengthen balance sheets across key sectors such as retail, consumer goods, and manufacturing.
R. Ponmudi, Chief Executive Officer of Enrich Money, noted that the Nifty was entering a decisive phase:
“A sustained breakout above the 26,000–26,300 range could propel the index into uncharted territory. Market sentiment remains constructive, supported by both domestic and global cues.”
Foreign institutional investors (FIIs) have also provided a strong tailwind, purchasing Indian equities for five consecutive sessions. This renewed buying momentum reflects growing global confidence in India’s economic resilience and market depth, even amid global uncertainty.
While global markets showed mixed cues, India appeared to buck the trend. Broader Asian indices opened lower after Wall Street closed on a weak note, dragged by disappointing earnings from Netflix and lingering concerns over the U.S. growth outlook. Meanwhile, global oil prices extended gains following fresh sanctions imposed by Washington on Russian energy companies, raising inflation and input-cost concerns across emerging economies.
However, India’s domestic fundamentals remained strong. A stable macroeconomic environment, government capital expenditure push, and robust corporate results have helped shield Indian markets from external volatility. Local investors also remain buoyant ahead of the festive season, with expectations of higher consumption spending adding another layer of support to market momentum.
Adding further fuel to optimism were reports suggesting that India and the United States were nearing a landmark trade understanding. The potential agreement could reduce tariffs on Indian exports to 15–16 percent, down from roughly 50 percent, marking a significant boost for India’s manufacturing and export sectors. Market observers see the prospective deal as a game-changer that could strengthen India’s global trade standing and attract more foreign investment.
Such developments, coupled with steady macro indicators, have made India one of the most attractive emerging markets globally. Analysts expect that continued foreign inflows, if sustained, could help the Nifty 50 chart new highs in the coming sessions.
The immediate focus for investors now lies on whether the Nifty can decisively breach the 26,300 level a psychological barrier that could mark a fresh record and trigger another leg of buying momentum. A breakthrough above this level could cement India’s position as one of the world’s best-performing equity markets in 2025.
However, experts caution that sustained performance will depend on external stability, crude oil trends, and the direction of foreign fund flows. For now, though, optimism prevails. With corporate earnings improving, domestic demand rebounding, and trade winds shifting in India’s favor, the Nifty’s march toward new highs appears increasingly unstoppable.