India’s stock markets ended November on a positive note, marking the third straight month of gains, supported by improving corporate earnings, expectations of domestic and U.S. interest rate cuts, and attractive valuations. The benchmarks closed near record highs ahead of key economic growth data.

The Nifty 50 ended 0.05% lower at 26,202.95, while the Sensex fell 0.02% to 85,706.67. Both indices had touched all-time highs on Thursday, the first in 14 months. Over November, the benchmarks rose about 2%, and have gained approximately 7.3% over the past three months.

“The recent breakout after a long consolidation reflects strengthening earnings, demand tailwinds from tax cuts, supportive monetary policy, benign inflation, and steady economic growth,” said Amnish Aggarwal, analyst at PL Capital.

Economic Outlook

India’s economy is expected to have remained resilient in the July-September quarter, with GDP growth estimated at 7.3% year-on-year, driven by strong domestic demand, according to a Reuters poll. The official data was scheduled for release after market hours on Friday.

Sector Performance

Eleven of the 16 major sectors recorded monthly gains. The information technology (IT) index rose 4.7%, supported by expectations of a December rate cut by the U.S. Federal Reserve, which could boost client spending in the U.S., the sector’s largest market.

Financials—including banks, private lenders, and state-owned banks—advanced between 2.6% and 4%, aided by improving earnings and expectations of an imminent Reserve Bank of India rate cut, which could lower funding costs and accelerate credit growth.

The auto sector gained 3.6%, led by Mahindra & Mahindra, which jumped 7.8% on strong earnings, robust demand, and new launches.

While the benchmarks reached fresh record highs, the rally remained constrained due to uncertainty over a trade deal with the United States. Small-cap stocks fell 3%, while mid-caps added 2% for the month.

Notable Stock Movers

• Asian Paints posted its best month since July 2022, rising 14.5%, driven by higher weightage in a key global index, demand recovery, and strong earnings results.
• Reliance Industries gained 5.5%, reflecting an improving earnings outlook across its oil-to-telecom business segments.

Overall, the November performance highlights a steady upward trajectory in Indian equities, supported by favorable domestic and global monetary conditions, corporate earnings growth, and sector-specific momentum, even as certain global uncertainties continue to temper investor enthusiasm.