Equity markets continued their winning run for the third week in a row, hitting new record levels as global risk appetite improved and domestic signals stayed positive. After some profit-booking early in the week, markets bounced back strongly midweek, which revived the bullish mood. This was followed by a brief period of stable trading. By the end of the week, the Nifty gained 0.52% to close at 26,202.95 and the Sensex rose 0.56% to finish at 85,706.67.
The rise was mainly supported by growing expectations that the U.S. Federal Reserve may cut rates by 25 basis points in December, lifting global sentiment. Hopes of progress in the Russia–Ukraine negotiations also boosted confidence, with the possibility of easing crude oil prices. At home, strong growth forecasts and steady performance in some sectors helped investor sentiment, although weak export numbers continued to create some pressure.
Key factors to watch as the new trading week begins
RBI policy meeting
The most important event will be the RBI’s Monetary Policy Committee meeting on December 5. Investors will be watching for comments on inflation, economic growth, and the chances of future rate cuts.
Auto sales
Monthly vehicle sales data will be tracked closely.
Domestic indicators
This week will also bring HSBC data for Manufacturing, Services, and Composite PMI.
Global cues
US macroeconomic numbers will continue to guide global risk sentiment as markets adjust expectations ahead of the Federal Reserve’s December policy decision, which will also influence foreign fund flows.
Technical view
Ajit Mishra from Religare Broking said the Nifty is still forming new highs, keeping the outlook positive. He sees the next targets at 26,500 and then 27,000. On the downside, he expects support near the 20-day exponential moving average around 25,900, with another key support at 25,700. He suggests investors use dips to buy near support zones and focus on large-cap stocks for stability. Traders should maintain trailing stop-losses on profitable trades and concentrate on sectors showing strong price trends and steady institutional buying.
Crude oil
WTI crude was heading for its fourth straight monthly fall — the longest in more than two years — due to concerns about excess supply. Market sentiment was also influenced by President Putin’s comment that President Trump’s Ukraine peace ideas could affect future talks, possibly softening sanctions and allowing Russian crude back into the global market. However, analysts remain cautious, expecting no quick breakthrough or big jump in Russian exports.
Rahul Kalantri of Mehta Equities said attention is now on Sunday’s virtual OPEC+ meeting, where officials are expected to stick to their plan of pausing output increases in early 2026 while reviewing long-term production goals.
Rupee movement
The USD-INR trend remains weak, with the rupee struggling near 89.25 because of a strong dollar and uneven foreign fund flows.
Jateen Trivedi of LKP Securities said that with no solid progress on the India–US trade deal and continued uncertainty, the rupee may soften further toward 90.00. He noted immediate resistance at 89.20, with the overall bias still negative.
FII activity
On Friday, foreign institutional investors (FIIs) were net sellers, pulling out Rs 3,672.27 crore from Indian equities. Domestic institutional investors (DIIs), meanwhile, were net buyers with inflows of Rs 3,993.71 crore.
