The Indian markets exhibited bullish sentiment on November 29, 2025, propelled by stellar Q2 GDP figures and optimistic growth forecasts, culminating in record highs for major indices. Overarching themes revolved around robust macroeconomic performance, potential reversal in foreign investment flows, and bustling activity in the primary market with major IPO announcements.
India’s Q2 FY26 GDP grew 8.2%, surpassing expectations and reinforcing its status as the fastest-growing major economy. The growth was driven by strong manufacturing and services sectors, with services expanding 10.2% year-on-year and manufacturing up 4.8%. Resilient domestic demand, moderating inflation, and a six-month high labour force participation rate of 55.4% in October 2025 supported the performance. The agriculture sector saw a slowdown, with growth dropping to 3.5% from 4.1% a year ago. Markets may open positively on Monday, with potential FII sentiment shifts, though technical charts show a mixed outlook with profit-taking risks. Experts caution against chasing indices at elevated levels, suggesting a wait for a healthier pullback. The full-year FY26 GDP growth is now projected near 7.5%, above RBI and government estimates.
Crisil has raised its full-year GDP growth forecast for India to 7% from 6.5%, following an 8% expansion in the first half of the financial year that exceeded expectations. The economy grew at 8.2% in real GDP terms during the September quarter, though nominal GDP growth was softer at 8.7% due to easing inflation. Private consumption emerged as the primary driver of this growth, supported by lower food inflation that encouraged discretionary spending. From the supply side, both manufacturing and services sectors recorded significant increases. Crisil anticipates a slowdown to 6.1% growth in the second half, influenced by potential higher US tariffs. Government investment is expected to stabilise, while private investments may see a delayed uptick. These developments, including GST rate rationalisation, reduced income tax, and RBI repo rate cuts, are likely to bolster private consumption and support economic momentum.
Chief Economic Adviser V Anantha Nageswaran expressed optimism that India's GDP growth may exceed 7% in FY26, surpassing the Economic Survey's projection of 6.3-6.8%. This outlook follows a stronger-than-expected 8.2% GDP growth in the second quarter of the current fiscal year. The Indian economy is projected to surpass USD 4 trillion in the current fiscal year, up from USD 3.9 trillion at the end of March. Growth was driven by increased factory production and a robust services sector, which recorded double-digit growth. Rural demand remains resilient, while urban demand is gaining traction following the GST rate cut. The third quarter of the current fiscal year has started on a sound footing. This positive outlook could boost investor confidence and support market stability in the Indian economy.
NDTV, https://www.ndtv.com/india-news/gdp-growth-may-cross-7-in-fy26-chief-economic-adviser-9717966
Commerce & Industry Minister Piyush Goyal stated that India is poised for relentless growth following the 8.2 per cent GDP expansion in the July-September quarter, attributing this to government reforms aimed at simplifying business processes and promoting investment. He highlighted that these measures have countered recent criticisms regarding the economy's trajectory and have started yielding lasting effects by reducing procedural delays and supporting production. Goyal noted that exports have shown resilience, with merchandise shipments rising marginally by 0.63 per cent to $254.25 billion and services exports reaching $237.55 billion in the first nine months of the fiscal year. The minister emphasized the government's commitment to sustaining this momentum through continued prioritization of ease of doing business initiatives. This positive outlook comes amid a challenging global trade environment, where India's growth outperformed China's 4.8 per cent in the same period. Immediate financial implications include boosted investor confidence in Indian markets, potentially leading to increased foreign direct investment and stock market stability. The reforms and GST reductions are expected to further stimulate demand, supporting economic resilience and growth in the near term.
Markets extended their winning streak for a third straight week, reaching new record highs on the back of improving global risk sentiment and supportive domestic factors. The Nifty rose 0.52% to end at 26,202.95, while the Sensex added 0.56%, settling at 85,706.67, driven by expectations of a 25-basis-point rate cut by the U.S. Federal Reserve in December and hopes of progress in Russia–Ukraine negotiations. Analyst Sudeep Shah noted that while the Nifty broke past its 14-month ceiling and several sector indices like Nifty Bank and Nifty Auto hit record highs, broader market participation remains selective, with small caps declining and mid caps showing hesitation. The rally is expected to continue with Nifty targeting 26,500–26,800 in the short term, supported by strong banking sector momentum, while Bank Nifty aims for 60,300–61,000. Foreign Portfolio Investors (FPIs) have remained net sellers due to elevated valuations, lack of broad-based participation, and global competition from AI and semiconductor themes. Immediate financial implications for the Indian economy and markets include sustained bullish sentiment in leading sectors like banking and infrastructure, boosting investor confidence and liquidity, though selective rally and FPI outflows may limit broader economic gains and increase market volatility.
Foreign Institutional Investors (FIIs) have been net sellers in the Indian equity markets in November, with outflows of Rs 3,765 crore till November 29, as they sold Rs 15,659 crore in the secondary market while purchasing Rs 11,894 crore through the primary market. Despite this selling pressure, analysts suggest that improving macroeconomic indicators and market sentiment could lead to a shift in FII strategy. The Indian market has rallied, with the Nifty and Sensex hitting record highs on November 27, driven by strong corporate earnings and positive economic data. India's Q2 GDP growth exceeded expectations at 8.2%, with robust growth in manufacturing (9.1%) and consumption expenditure (7.9%), signaling economic resilience. These developments have bolstered market confidence, with analysts forecasting 15-16% earnings growth for FY27. The potential reversal in FII flows could stabilize or boost market sentiment, supporting further upside in Indian equities.
Mutual fund assets in India have surpassed Rs 80 trillion, marking a significant milestone in the country's financial sector. SEBI Chairman Tuhin Kanta Pandey highlighted this achievement during a speech at the Puducherry Investor Seminar. He pointed out that despite the growth, financial literacy among investors remains low, which poses challenges for the effective functioning of the market. Pandey stressed the need for stronger awareness campaigns to educate investors at the grassroots level. In 2024–25, nearly 50,000 investor awareness programmes were conducted across 90 percent of districts in India. This initiative aims to bridge the knowledge gap and enhance investor confidence. The milestone and SEBI's focus on literacy could support sustained growth in mutual fund investments, potentially stabilizing market participation and encouraging long-term savings in the Indian economy.
Meesho, a Bengaluru-based e-commerce firm backed by SoftBank, is preparing to raise up to $606 million through an initial public offering (IPO) to expand its operations into smaller towns across India. The company, known for its low-priced offerings and reliance on small sellers, aims to capture more thrifty consumers in Tier 2 and Tier 3 cities, leveraging its commission-free model and focus on affordability. Founded in 2015, Meesho experienced significant growth during the Covid pandemic and benefited from the 2020 ban on Chinese apps like Shein, which created a gap for budget-conscious buyers. The IPO, set to begin with anchor investor bidding on December 2, will offer shares in the price range of 105 to 111 rupees, with the company planning to raise 42.5 billion rupees through fresh shares and up to 54.2 billion rupees total by selling existing shares. Meesho reported a 23% increase in revenue to 93.9 billion rupees for the year ended March 31, though its losses widened significantly to 39.42 billion rupees, partly due to one-off charges from shifting its domicile to India. The proceeds from the IPO will be used to fund acquisitions, cloud infrastructure, AI development, marketing, and financial services like buy-now-pay-later offerings. This move could boost investor confidence in India’s e-commerce sector, potentially driving short-term gains in related stocks and supporting economic activity in smaller towns.
Economic Times, https://economictimes.indiatimes.com/tech/startups/softbank-backed-meesho-set-to-seek-up-to-605-million-via-ipo/articleshow/125657031.cms
India's Adani Group plans to raise 900 billion rupees ($10.06 billion) in debt in the next financial year through a mix of bank loans, bonds and overseas borrowings, as stated by a senior company executive. This fundraising strategy aims to support the conglomerate's ambitious expansion in infrastructure, including ports, airports, and renewable energy projects. The group has been recovering from past controversies, with recent bond issuances demonstrating renewed investor interest. In July, Adani raised 10 billion rupees through a public bond sale comprising multiple tranches. The plan reflects confidence in India's economic growth trajectory and Adani's role in key sectors. Immediate implications include potential increases in capital expenditure, stimulating related industries and job creation. However, higher debt levels could influence market perceptions of the group's financial health and affect stock volatility.
SAMCO Mutual Fund CEO Viraj Gandhi forecasts a measured recovery for India's IT sector in 2026, driven by stabilising global interest rates and a gradual increase in enterprise technology budgets. The sector faced significant challenges in 2025 due to muted discretionary spending and slow decision cycles, but improving deal traction and margin repair are expected to support a selective rebound. Gandhi anticipates that normalising demand cycles will benefit high-quality IT companies, though a sharp recovery is unlikely. Broader Indian equity markets are poised for new highs in 2026, supported by pro-growth policies, GST adjustments, and a dovish RBI stance. Financials, industrials, and domestic consumption themes are highlighted for alpha generation, with autos also showing selective tailwinds. Valuations remain elevated in some areas, but consensus earnings growth over the next two quarters could lead to gradual target-price upgrades. This outlook suggests potential stability and selective opportunities in IT stocks, contributing to positive sentiment in the Indian markets.