Nifty hits fresh all-time high as earnings revival sparks rally
Nifty hits fresh all-time high as earnings revival sparks rally
Indian shares push to new peaks on earnings revival and supportive global cues, with Nifty and Sensex racing to fresh highs.
Indian benchmarks extended gains to hit fresh records on Thursday, with the Nifty rising to 26,285.95, up 80.65 points (0.31%). The rally marked the index's first new peak since September 2024, signaling a renewed risk appetite among traders. The Sensex followed suit, trading near 85,843 in early action, inching closer to its September 2024 peak of 85,978.25. Investors in Kolkata watched the action with cautious optimism as futures and cash segments traded with a positive bias.
Analysts say improved earnings visibility and a more supportive macro environment are behind the move. Valuations, after cooling from last year's highs, now look more reasonable, with Nifty's forward earnings around 22.3x-22.7x, lower than the 23x-25x range seen a year ago. The combination of improving corporate earnings, easing inflation, and a cautious but constructive policy backdrop underpins the current tone.
Technically, the market has formed higher-low patterns in the short term, reinforcing a bullish setup. Market observers note that if the index can sustain above the high levels and close above the earlier peaks, it could unlock room for a faster catch-up rally. The recent price action comes amid renewed optimism over possible earnings revival in the second half of FY26 and expectations for rate cuts both here and abroad.
While the mood remains positive, analysts caution that valuations are still a consideration and volatility could persist until macro cues firm up. Still, investors appear encouraged by the steady improvement in consumption, stabilizing inflation, and supportive fiscal and monetary policy stances. With global peers and commodity prices closely watched, Indian markets are being driven by a mix of domestic earnings prudence and global risk appetite. The near-term focus for traders will be to see whether these gains sustain through the end of the week and into the next month.
Cover image source: Sensex jumps 1,022.50 points; Nifty inches near record high on U.S. fed rate cut hopes 🔗
