Indian markets steadily built on the momentum seen in September and moved confidently higher through November. The festive season optimism that began in October gradually turned into a broad and sustained market recovery. By the end of the month, the Sensex and Nifty had not only regained the losses from July and August but also touched new all-time highs.
Strong Q2 FY26 earnings supported the rally, along with smoother progress in India–US trade discussions and rising expectations of a US Fed rate cut. Continuous buying by DIIs and the gradual return of FIIs added further strength. Together, these factors kept sentiment upbeat and helped the market end November on a historic high.
Let us understand how the market performed in November 2025 and what could shape the outlook for December.
November 2025 Market Performance
November 2025 emerged as another strong month for the Indian stock market. The Nifty began near 25,700 and moved steadily higher, surpassing its previous all-time high of 26,277 registered in September 2024. It went on to touch a new peak of 26,310.45 for the first time on November 27. The Sensex also showed solid momentum, climbing from around 83,835 to above 86,000, gaining almost 1,800 points.
On November 1, the Nifty opened at 25,696.85, and by November 28, it closed at 26,202.95, delivering a growth of 1.87%. The Sensex posted a higher gain of 2.11%. November has historically been a strong month, and this year it was supported by limited FII selling, steady DII buying, optimism around the US–India trade deal, and healthy Q2 corporate results. These factors together kept the market firm throughout the month.
Major Triggers in November 2025
Crude Oil Prices Stayed Low: Crude oil remained stable through the month, trading between $61.50 and $57.10 per barrel. This stability supported India as a major oil-importing country and helped ease inflationary and cost pressures.
Progress on the India–US Trade Agreement: Talks on the bilateral trade agreement moved closer to the first phase of completion. The deal is expected to ease high tariffs on Indian exports and address US market access concerns. Recent data showed a drop in India’s exports to the US due to tariff-related pressures, while imports from the US increased. Expectations of a clearer trade framework lifted market sentiment.
NDA’s Big Win in Bihar Boosted Sentiment: The NDA’s strong victory in the Bihar elections lifted market confidence. The result came alongside ongoing reforms and growth-focused measures by the RBI and the central government. Together, these factors strengthened expectations of a stable market trend.
Foreign Flows Showed Improvement: After significant selling in previous months, FII outflows moderated. By November 27, FIIs had sold around Rs 13,704 crore, relatively lower than the July to September period. DIIs supported the market with strong net buying of about Rs 72,935 crore. This steady domestic inflow helped absorb foreign selling and kept the market stable.
November 2025: Sectoral Performance
Analysing sectoral performance in November shows that PSU Banks, the IT Index, and the Nifty Bank sector performed exceptionally well throughout the month, while the Nifty Realty and Media sectors saw a slight decline.
In November, the market moved past the all-time high last seen in September 2024, signalling strong bullish momentum.
What to Expect in December?
The first phase of the India–US FTA is expected to move closer to completion. If tariffs on Indian goods are reduced to around 15%, it could boost investor confidence and support export-driven sectors. India and Canada are also nearing a 10-year uranium supply agreement worth about $2.8 billion. The deal involves Canada’s Cameco Corp and aims to expand civil nuclear cooperation. Finalisation of this pact may strengthen sentiment in energy and infrastructure-related segments.
Markets are now focused on the MPC meeting scheduled from December 3 to 5. A 25 basis point cut in the repo rate to 5.25% is widely expected as inflation remains near zero and growth stays strong. Any change in guidance on the rate path, liquidity stance, or inflation outlook will influence banks, NBFCs, and other rate-sensitive sectors. Additionally, expectations of a 25 basis point rate cut by the US Federal Reserve could affect global risk appetite and foreign flows into emerging markets, including India.
The US is working on a peace framework, and Ukraine has shown willingness to discuss key points. Any movement toward stability in the region may support global market sentiment and could benefit the Indian market as well. Furthermore, if FIIs return with stronger buying interest, it may lift the Indian market further and potentially drive the indices to new record highs in December.
*The article is for information purposes only. This is not investment advice.
*Disclaimer: Teji Mandi Disclaimer
