Anil Singhvi Explains: From Robust GDP data to trade deal optimism, key tailwinds driving Nifty50 higher

Indian markets are witnessing renewed momentum, driven by stronger-than-expected GDP data and optimism over an impending trade deal. The NSE Nifty 50 added 120 points, or 0.46 per cent, to a record high of 26,326, just days after climbing to its previous record peak of 26,310.45 on November 27.

The S&P BSE Sensex rose 360 points, or 0.41 per cent, to open at 86,159. According to market veteran and Zee Business Managing Editor Anil Singhvi, these factors could act as fresh triggers for a market already on an upswing.

GDP Strength Surprises Analysts

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India’s GDP grew 8.2 per cent year-on-year in July-September, beating expectations, driven by strong consumer spending and manufacturing, even as global trade uncertainties lingered. The figure surpassed a Mint poll of 7.2 per cent and was higher than the 7.8 per cent growth recorded in the preceding quarter of fiscal 2025-26. The nominal GDP witnessed a growth rate of 8.7 per cent in Q2FY26.

For the half year (April-September) FY26, real GDP registered an 8 per cent growth, compared with 6.1 per cent in H1 FY25, underscoring the economy’s resilient momentum.

Potential Market Triggers

Several upcoming events are likely to influence market sentiment:

November auto sales numbers, expected to remain strong.

Reserve Bank of India’s policy review on December 5, where rate cuts could be on the table.

Parliament’s winter session from December 1 to 19, potentially impacting key policy decisions.

Commerce Secretary expects a trade deal to be finalized by month-end.

Russian President’s visit to India on December 4-5, adding a geopolitical dimension.

Market Performance Highlights for November

Indian markets outperformed globally, with Nifty50 rising 1.87 per cent and reaching a life-high.

Bank Nifty and midcap indices recorded their highest monthly closing, marking three consecutive months of gains.

Smallcap indices lost momentum, dropping 3 per cent in November.

IT index gained 4.75 per cent, PSU banks 4 per cent, and sectors like pharma, auto, and bank Nifty rose around 3.5 per cent.

Weakest performers were realty (-4.7 per cent) and metals (-3 per cent).

In contrast, Japan and South Korea markets fell over 4 per cent, highlighting India’s relative outperformance.

Singhvi emphasized that with GDP momentum already strong, the combination of policy support and trade deal optimism could be the catalyst for the next leg of the rally. Investors are advised to monitor sectoral movements closely as these triggers unfold.