Share Market Rise: Indian stock markets have started the month of December with a tremendous surge. Both Sensex and Nifty reached their new all-time high on Monday. Investors’ enthusiasm remained high due to strong GDP data for the September quarter and strong signals from global markets.
BSE Sensex jumped 452.35 points to reach the level of 86,159.02, which is now its new record high. At the same time, Nifty also rose by 122.85 points to reach the level of 26,325.80, which is its highest level till date. Earlier, both these indexes had made their new all-time high on November 27, which was broken in today’s trading.
There were 4 big reasons behind today’s rise in the stock market-
1. Market excited by strong GDP figures
According to official data, India’s GDP grew at 8.2 percent in the September quarter, which is the fastest growth in the last six quarters. This exceeded market expectations, which kept investors’ morale strong. According to economists, this fast growth was seen due to strong consumer demand and increased production before the festive season. After these figures, Barclays also increased its growth forecast for 2025-26 from 6.8 percent to 7.2 percent.
Dr VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “The strong GDP data of 8.2 per cent in the September quarter, especially the strong performance in manufacturing, services and consumption, has the potential to take the market further higher.”
2. Expectations increased regarding India-US trade agreement
Expectations have also increased regarding the long pending trade agreement between India and America. Commerce Secretary Rajesh Aggarwal said that negotiations are progressing rapidly on both a comprehensive bilateral trade agreement (BTA) and creating a separate framework to resolve issues related to reciprocal tariffs imposed on Indian goods.
He said talks related to the framework could move forward first and are likely to be completed by the end of 2025. After this it will become part of the Comprehensive Bilateral Trade Agreement (BTA) between the two countries. Agarwal says the first phase of the agreement is “largely on schedule” and could be finalized in the coming weeks or months once necessary approvals are received.
3. Expectations of interest rate cut in RBI meeting
The stock market also got support from the expectation that the Reserve Bank of India (RBI) may cut interest rates in its next meeting on December 5. Most of the economists surveyed by Reuters estimate that the repo rate may be cut by 25 basis points, which will bring it down to 5.25 percent.
4. Decline in volatility index
The India VIX index, indicating the volatility present in the stock market, fell by more than 1 percent on Monday to 11.5 points. A low VIX usually indicates market stability and supports market bullishness.
What signals are coming from technical charts?
Anand James, Chief Market Strategist, Geojit Financial Services, says that recent chart patterns suggest that a big uptrend continues. He said that a slight decline or flat opening is possible in the beginning of the week but it will not last. He expects Nifty to initially move towards 26,460–26,550 and then may go towards 26,900–27,200 levels. At the same time, if there is a fall below 26,090, the level of 25,860/25,700 or 25,300 can also be seen.
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