_{Published on: 27 Nov, 2025 02:17}

The Indian markets exhibited a strongly bullish sentiment on November 26, 2025, driven by renewed optimism over potential US Fed and RBI rate cuts, positive IMF outlook, and broad-based sectoral gains. The day was marked by a significant rally in major indices, reflecting improved global cues and domestic economic resilience amidst foreign outflows. Key themes included monetary policy easing, robust growth projections, and strategic investments in technology and green sectors.

• Sensex surged over 1,000 points amid rate cut hopes and global positivity.
• IMF projects 6.6% GDP growth for FY26 with contained inflation.
• Reliance JV announces $11 billion AI data center investment.
• Government approves $816 million rare earth magnets program.
• Gold prices climb on reinforced US rate cut expectations.

Sensex Surges 1,023 Points to Near Record High on Rate Cut Optimism

Indian benchmark indices ended strongly, with the Sensex closing at 85,609.51 after a 1.21% gain and Nifty at 26,205.3 up 1.24%, driven by broad-based buying. All sectors advanced, led by metals (up 2.06%), consumer durables (1.75%), and energy (1.74%), while midcap and smallcap indices rose over 1%. The rally was fueled by expectations of a US Fed rate cut in December, softer yields, and a weaker dollar. Anticipation of an RBI 25-basis point cut next week, amid moderating inflation, added momentum. Positive global cues, including a potential Russia-Ukraine truce and declining crude prices, eased inflationary concerns. Domestic institutional inflows and short covering supported the upmove, increasing investor wealth by ₹6 lakh crore. This performance signals a shift from recent volatility, positioning indices near all-time highs.

Business Standard - https://www.business-standard.com/markets/news/stock-market-live-updates-november-26-nse-bse-sensex-today-nifty-gift-nifty-us-fed-rates-nikkei-ipos-125112600071_1.html

IMF Projects Robust 6.6% Growth for India's Economy in FY2025/26

India's economy continued to perform strongly, with real GDP growth accelerating to 7.8% in the first quarter of FY2025/26, supported by resilient domestic demand and service exports. The IMF forecasts 6.6% growth for FY2025/26, moderating to 6.2% in FY2026/27 under a scenario of prolonged US tariffs, while highlighting the positive impact of recent GST reforms. Inflation remains well-contained at 2.8% for FY2025/26, driven by subdued food prices, allowing room for monetary easing. The Executive Board commended sound policies and urged fiscal consolidation through spending discipline and revenue mobilisation. Structural reforms in labour markets, human capital, and trade integration are recommended to sustain higher potential growth. The green transition and improved data quality are emphasised for long-term sustainability. These projections bolster market confidence in India's economic resilience amid global uncertainties.

Reuters India - https://www.imf.org/en/news/articles/2025/11/24/pr-25392-india-imf-executive-board-concludes-2025-article-iv-consultation

 

IMF Reclassifies India's FX Regime to 'Crawl-Like' Arrangement

The International Monetary Fund shifted India's exchange rate classification from 'stabilized' to 'crawl-like', reflecting gradual depreciation trends in the rupee. This change acknowledges the RBI's management amid pressures from foreign outflows and global uncertainties. Despite the reclassification, the IMF maintains a positive outlook, projecting 6.6% growth for FY2025/26. Inflation is expected to stay contained, supporting potential monetary easing. The rupee's controlled depreciation helps absorb external shocks without disorderly movements. Recent tax reforms are noted for mitigating tariff impacts. This adjustment highlights India's evolving forex strategy in a volatile global environment.

Reuters India - https://www.reuters.com/world/india/imf-reclassifies-indias-fx-management-regime-crawl-like-arrangement-stabilised-2025-11-26/

JP Morgan Forecasts Nifty 50 Reaching 30,000 by End-2026 on Rate Cuts and Tax Breaks

JP Morgan predicts the Nifty 50 could climb to 30,000 by end-2026, a 15% rise from current levels, driven by interest rate reductions and tax incentives. Lower borrowing costs would boost corporate earnings and consumer spending in rate-sensitive sectors. Tax breaks are expected to enhance disposable income, supporting economic growth amid global challenges. The forecast assumes resilient domestic demand despite foreign investor exits. Positive US policy shifts could further aid emerging markets like India. This optimistic view contrasts with recent market volatility, emphasising long-term potential.

Reuters India - https://www.reuters.com/world/india/rate-cuts-tax-breaks-could-lift-indias-nifty-50-30000-by-end-2026-jp-morgan-says-2025-11-26/

 

Reliance Industries and JV Partners to Invest $11 Billion in AI Data Centers

Reliance Industries, in partnership with global firms, plans to invest $11 billion to expand AI data center capacity in India. This initiative aims to meet surging demand for cloud and AI services amid digital transformation. The investment will enhance infrastructure for data storage and processing, positioning India as a tech hub. Partners include leading tech companies, leveraging Reliance's telecom expertise. This move supports government digital economy goals and could create jobs in tech sectors. It reflects growing corporate focus on AI amid global competition.

Reuters India - https://www.reuters.com/world/india/reliance-industries-jv-invest-11-billion-data-centre-2025-11-26/

India Approves $816 Million Program for Rare Earth Permanent Magnets Manufacturing

The government sanctioned $816 million to boost domestic production of rare earth permanent magnets, crucial for electric vehicles and renewable energy. This program seeks to reduce import dependence and strengthen supply chains in strategic sectors. Incentives will support manufacturing units, fostering self-reliance in critical materials. The initiative aligns with green transition goals, potentially attracting FDI. It could lower costs for EV and wind energy industries, enhancing competitiveness. This policy move addresses global supply vulnerabilities, particularly from China.

Reuters India - https://www.reuters.com/world/india/india-approves-816-mln-rare-earth-permanent-magnets-manufacturing-programme-2025-11-26/

 

Reuters Poll: Indian Stocks to Hit New Highs by Mid-2026 Despite Foreign Exodus

A Reuters poll indicates Indian equities will reach record highs by mid-2026, extending gains through 2027, despite ongoing foreign outflows. Strong domestic fundamentals and earnings growth are expected to drive the uptrend. The Nifty 50 is projected to rise 10-15% over the period, supported by policy stability. Poll respondents highlight resilience amid global uncertainties like US tariffs. This outlook underscores confidence in India's long-term market potential. It contrasts with short-term volatility from FII selling.

Reuters India - https://www.reuters.com/world/india/indian-stocks-hit-new-highs-by-mid-2026-despite-foreign-exodus-2025-11-26/

Rupee Closes Marginally Weaker Amid Portfolio Outflows

The Indian rupee depreciated slightly to 89.25 against the US dollar, pressured by foreign portfolio outflows and hedging demand. State-run banks' dollar sales limited the decline, providing support. Despite mounting Fed rate cut expectations weakening the dollar, the rupee failed to gain significantly. Ongoing FII exits from equities added downward pressure. This movement reflects broader emerging market currency trends. The RBI's interventions aim to maintain stability.

Reuters India - https://www.reuters.com/world/india/rupee-unlikely-ride-dollar-dip-spurred-by-mounting-fed-rate-cut-conviction-2025-11-26/

 

Gold Climbs to One-Week High on US Rate Cut Bets

Gold prices rose to over a one-week peak, reinforced by increasing expectations of a Federal Reserve rate cut in December. Lower interest rates reduce the opportunity cost of holding gold, boosting demand. Deutsche Bank raised its 2026 gold forecast to $4,450 per ounce, signaling long-term bullishness. In India, this uptick supports investor sentiment amid equity rallies. Gold's safe-haven appeal persists amid global uncertainties. The price movement positively impacts related sectors like jewelry and mining.

Reuters India - https://www.reuters.com/world/india/gold-climbs-near-two-week-high-reinforced-us-rate-cut-bets-2025-11-26/

Study Projects 48 Million Jobs from India's Green Economy by 2047

A CEEW study forecasts India's green economy could create 48 million jobs and attract $4.1 trillion in investments by 2047. This includes $1.1 trillion annual green market value across energy, circular economy, and bio-solutions. Energy transition alone may generate 16.6 million jobs, with electric mobility leading. Bio-economy sectors like agroforestry could add 23 million positions, focusing on rural areas. This aligns with Viksit Bharat goals, enhancing resource security. The projection highlights opportunities in sustainable sectors for economic growth.

Livemint - https://www.ndtv.com/india-news/indias-green-economy-may-create-48-million-jobs-by-2047-study-9703569