Sensex and Nifty hit fresh record high: What's driving rally?
What's the story
The Indian stock market witnessed a strong rally on Friday, with Sensex and Nifty hitting record highs. The Sensex surged by 573 points to close at an all-time high of 85,762, while the Nifty gained 182 points to end at a lifetime high of 26,329. The broader markets followed suit. The Nifty Bank gained 439 points to settle at 60,151, and the Midcap Index rose by 616 points to close at 61,366, both hitting record highs.
Investor wealth
Market capitalization of BSE-listed firms surpasses ₹481 lakh crore
PSU stocks emerged as top gainers while power-related and metal stocks saw strong gains amid rising commodity prices. The overall market capitalization of BSE-listed firms rose to over ₹481 lakh crore from nearly ₹477 lakh crore in the previous session. The rally was driven by healthy across-segment buying amid expectations of a strong Q3 results season and positive global cues. Strong automobile sales numbers for December also contributed to the market's upward momentum.
Future outlook
Investor sentiment remains constructive amid Q3 earnings expectations
Despite a challenging year in 2025, investors are optimistic about healthy returns in the new year. They expect strong earnings growth and the return of foreign institutional investors (FIIs) to the Indian stock market. "Investor sentiment remains broadly constructive as attention turns to Q3 earnings, which are expected to guide near-term market direction," said Vinod Nair, Head of Research at Geojit Investments.