Dalal Street is poised to start the day higher on Thursday, possibly reaching new record levels following a strong surge in the previous session that lifted both the Sensex and Nifty by approximately 1%. The optimistic sentiment in global and domestic markets, along with softer crude oil prices and consistent foreign investments, are anticipated to provide a boost at the opening bell.
Early indications suggest strength in the market, with Nifty futures trading at 26,436 as of 7:38 a.m., indicating a potential opening above Wednesday’s closing level of 26,205.3 and a likely surpassing of its previous record high of 26,277.35.
Throughout most of 2025, Indian markets have trailed behind other Asian counterparts due to subdued earnings, lofty valuations, and foreign divestment amid global uncertainties. However, the landscape has now shifted. Improved corporate earnings, lower valuations, prospects of tax reductions, and the potential rate cuts by both the U.S. Federal Reserve and the Reserve Bank of India have brightened the outlook.
In a standout performance on Wednesday, the Nifty achieved its most impressive session in five months, culminating in a closure at a 14-month peak. This upsurge was driven by mounting confidence in the likelihood of rate cuts by the U.S. Federal Reserve commencing in December. Additionally, stocks sensitive to interest rates such as banks, automobiles, and real estate firms witnessed robust buying ahead of the RBI’s upcoming policy meeting.
Dhupesh Dhameja, a Derivatives Research Analyst at SAMCO Securities, noted the index’s strong indications of surpassing its previous peaks. He commented that the Nifty’s resurgence from the 25,800 demand zone, forming a bullish Marubozu candle, signals a potential move towards record highs as it crosses the 26,100 milestone.
Analyzing the derivatives market, Dhameja highlighted a bullish sentiment, citing aggressive put writing at lower levels and an upward shift in call writers, indicating a strengthening bullish stance. He suggested that breaching 26,280 could trigger further short-covering, potentially propelling the market towards 26,500, while any declines towards 26,000 could serve as accumulation opportunities.
Siddhartha Khemka, the Head of Research at Motilal Oswal Financial Services, affirmed the supportive broader conditions, emphasizing a positive market backdrop driven by a robust Q3 demand setup, expectations of increased capital expenditure, and the potential rate cuts by the RBI and Fed that could propel the market past its all-time peak.
The global outlook remains favorable, with Asian markets opening on a positive note, registering about a 0.4% increase after a nearly 3% gain over the past three sessions. The anticipation of U.S. rate cuts has stimulated global risk appetite, rendering emerging markets like India more attractive to foreign investors.
On Wednesday, foreign portfolio investors injected Rs 4,778 crore into Indian equities, marking the largest single-day inflow in a month. Concurrently, domestic institutional investors procured stocks worth Rs 6,248 crore, according to provisional data from the NSE.
Moreover, Brent crude futures hovered near Rs 63 per barrel after descending to a one-month low. The decline in oil prices bodes well for sectors such as paints, cement, aviation, and oil marketing companies, as it helps curtail input expenses and bolster margins.
Backed by robust global cues, lower crude prices, diminishing bond yields, and widespread buying in mid- and small-cap shares, analysts are optimistic about the market’s potential to prolong its rally. All eyes are now on whether the Nifty and Sensex can scale new highs at the commencement of trading.