Benchmark indices Sensex and Nifty opened strong on November 25, fueled by the BJP-led Mahayuti Alliance’s sweeping victory in Maharashtra and positive cues from Asian and US markets. A slowdown in foreign outflows further bolstered investor confidence, driving a broad-based rally.
By 9:30 am, the Sensex surged 1,323.37 points or 1.67% to reach 80,440.48, while the Nifty climbed 408.20 points or 1.71% to 24,315.50. Market breadth was overwhelmingly positive, with 2,635 stocks advancing, 411 declining, and 106 remaining unchanged.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, attributed the market optimism to the Maharashtra election results and easing foreign institutional investor (FII) selling. He noted, “If FIIs turn net buyers, we could witness a sustained rally,” as foreign outflows are expected to taper in the December holiday period.
On Friday, FIIs sold ₹1,278 crore in cash markets, the lowest outflow since the start of November, significantly down from ₹5,000 crore the previous day. The markets had rallied over 2% in the last session, marking the biggest single-day gain in five months.
Sectoral Leaders and Key Movers
PSU Banks, Realty, and Auto indices led the rally, with gains of up to 4% in early trade. Banking stocks like SBI, Bank of Baroda, PNB, and Canara Bank lifted the PSU index, while auto giants M&M, Maruti Suzuki, and Tata Motors added momentum.
Reliance Industries emerged as a top gainer, surging nearly 3% to ₹1,299 after Citi highlighted favorable prospects in refining margins and potential 5G monetization for Jio.
Food delivery major Zomato saw a 6% jump after securing shareholder approval to raise ₹8,500 crore through Qualified Institutions Placement (QIP). Zomato is set to replace JSW Steel in the Sensex from December 23.
Cochin Shipyard also rallied 4% after signing an MoU with Seatrium Letourneau USA, Inc., aimed at designing and supplying critical equipment for jack-up rigs in the Indian market.
Broader Market Trends
Mid-cap and small-cap indices mirrored the upbeat sentiment, gaining 1.6% each. Despite broader market rallies, domestic brokerage Motilal Oswal cautioned about stretched valuations in mid- and small-cap segments, even as large-cap stocks appeared attractively priced after recent corrections.
Motilal Oswal noted that broader markets have outperformed significantly this year, with mid- and small-cap indices rising 19% compared to Nifty’s 9% growth.
Outlook and Resistance Levels
Vaishali Parekhi, Senior VP of Technical Research at Prabhudas Lilladher, pointed out critical support and resistance levels for the indices. “For Nifty, holding above the 23,200-23,300 range is crucial for recovery. The Sensex has shown a strong rebound from its 200-day moving average of 77,500, crossing the key 79,100 level.”
She added, “The next challenge for the Sensex is to breach 80,200, which could open doors for further gains. Support for the week lies at 77,300 for the Sensex and 23,300 for the Nifty, with resistance expected at 81,000 and 24,500, respectively.”
Top Gainers and Losers
On the Nifty, top gainers included Shriram Finance, BPCL, Bharat Electronics, L&T, and M&M. The only losers were JSW Steel and Infosys.
As geopolitical tensions and US treasury yields continue to influence global markets, analysts caution that volatility is likely to persist despite near-term optimism.