Sensex and Nifty 50 Touch All-Time Highs on Robust Q2 GDP Data

India’s Q2 GDP Surprise Has Offered the Markets a Decisive Boost, Driving Sensex and Nifty 50 to Fresh Records

India’s Q2 GDP growth has surpassed market expectations, which provided a strong rally in benchmark indices. Sensex and Nifty 50 touched fresh all-time highs as tech, banking, and consumer stocks surged on Monday (December 1, 2025). Investors were jubilant after official data showed India’s GDP grew 8.2 percent in the September quarter. This was the fastest growth in six quarters and above market expectations.

Stock Market Today

The Nifty 50 rose 0.47% to 26,325.80 at the open, and Sensex gained 0.42% to 86,065.92, as of 9:15 am. Both surpassed the previous all-time high levels hit on Thursday (November 27). Fifteen of the 16 major sectors advanced at the open. The broader small-caps and mid-caps gained 0.4% and 0.3%, respectively.

Market Drivers

India's GDP expanded at 8.2% in the July-September quarter, as against a forecast of 7.3-7.5% by most analysts and 7.8% in the previous quarter. The growth was supported by robust consumer spending and front-loading of production before the festive season.

Top Gainers 

Adani Ports and Special Economic Zone, Tata Motors Passenger Vehicles, JSW Steel, Kotak Mahindra Bank, and Maruti Suzuki India were among the top gainers in the Nifty50 pack, rising up to 2 percent.

Experts feel the expansion to robust consumer demand and front-loaded production ahead of the festival season. 

Words & Predictions from Analysts 

"The excellent Q2 GDP numbers at 8.2 percent, particularly the strong performance in manufacturing, services, and consumption, have the potential to take the market higher," said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Barclays Plc has now raised its India GDP growth forecast for FY26 to 7.2% from 6.8% following the better-than-expected data and strong momentum in the ongoing December quarter. 

A majority of economists in a Reuters poll anticipate a 25-basis-point reduction in the repo rate to 5.25 percent, with rates likely to remain unchanged through 2026.

According to Anand James, Chief Market Strategist at Geojit Financial Services, said, “Dips or flat openings may occur early in the week but are unlikely to hold. He expects the Nifty to advance towards 26,460-26,550 initially, followed by 26,900-27,200. On the downside, a fall below 26,090 could expose levels of 25,860/25,700 or even 25,300.”

Investors are also expecting a rate cut by the Reserve Bank of India at its December 5 policy meeting. 

Impact of India-US Trade Discussions

The proposed India-US trade arrangement has contributed significantly to the upbeat sentiment.

Commerce Secretary Rajesh Agarwal said, “Negotiations (India-US trade discussions) were progressing on both a broader Bilateral Trade Agreement (BTA) and a separate framework aimed at resolving reciprocal tariff issues faced by Indian exporters.”

The framework pact is likely to advance first and could be concluded by end-2025. Agarwal also added that the “First tranche of the deal was largely on track" and could be finalised within weeks or months, subject to approvals.”

Final Thoughts 

The record-breaking rally highlights how India’s accelerating digital infrastructure, tech adoption, and services growth continue to influence investor appetite. Corporate earnings and policies will be crucial in determining whether this rally solidifies into a long-term trend.

The Indian stock markets are moving towards a bullish future as several sectors have been trading in the green. Analysts have stated that overt optimism should not affect investments, as the stocks are extremely volatile. It remains to be seen whether the current trend continues or if a dip is on the horizon.