E-Paper
Nifty all time high today: What's driving the rally?
Nifty touched 26,285.95, gaining 80.65 points (0.31%), marking its first new peak since September 2024.
Nifty surged to a fresh all-time high on Thursday morning after 14 months of subdued performance, driven by renewed bullish sentiment, expectations of an earnings revival, and supportive global cues.
Nifty touched 26,285.95, gaining 80.65 points (0.31%), marking its first new peak since September 2024. It crossed its previous high of 26,277.37 set 14 months ago, signalling a decisive return of upward momentum.
The Sensex also rallied sharply, hitting 85,843.82 in early trade - inching close to its September 2024 record of 85,978.25.
Both benchmarks opened higher, extending Wednesday’s gains. Nifty began the session at 26,261.25, while the Sensex opened at 85,741.13.
Earnings outlook, stable valuations boost markets
Market experts attributed the rally to expectations of improving corporate earnings and a more favourable macroeconomic environment.
Ajay Bagga, banking and market expert, told ANI that Indian markets were “well-positioned to reclaim the all-time highs hit in September 2024”.
“A close above that level can open the way to a rapid catch-up in the Indian markets, which have underperformed over the last 14 months,” he said, adding that historical trends point to strong 12-month returns after long consolidation phases.
Analysts also noted that corporate earnings - which saw their strongest revival in over a year - are expected to improve further in the second half of FY26, aided by benign inflation, recovering consumption and supportive fiscal and monetary policies.
Cooling valuations have also helped. The Nifty now trades at 22.3x–22.7x forward earnings, lower than the elevated 23x–25x levels seen a year ago.
Technical indicators highlight bullish setup
In the short term, Nifty’s chart pattern remains favourable, said Ponmudi R, CEO of Enrich Money.
“The index has consistently formed higher-low patterns, confirming that the broader trend remains bullish despite some profit-booking at higher levels,” he noted.
A sustained close above 26,277 could push the index towards 26,350–26,500, with a possible extension to 27,000, he said, while immediate support lies at 26,100–26,000 and a stronger cushion near 25,850.
Global cues supportive
Asian markets traded higher on Thursday as expectations of US Federal Reserve rate cuts outweighed concerns over a sell-off in AI stocks.
Japan’s Nikkei 225 gained over 1%, while Taiwan, Singapore and South Korea also posted early advances.
US markets continued their uptrend overnight, further lifting sentiment.
Domestic flows counter foreign volatility
Analysts highlighted the continued strength of domestic institutional participation. Mutual fund inflows have remained robust since early 2021, with systematic investment plan (SIP) contributions hitting new highs. This domestic resilience has helped offset fluctuations in foreign portfolio flows.
Lower valuation premiums compared to Asian peers and India’s relatively minimal exposure to AI-heavy sectors have also made the market more attractive to global investors.
