The Month That Was : November 2025

Indian equity markets scaled fresh record highs in November, with the Nifty 50 Index gaining 1.9% during the month. Broader markets were mixed, with mid-cap indices posting similar gains while small-cap stocks underperformed, declining by 3%. Sectoral performance was uneven, with IT, auto, and banking stocks outperforming, while real estate, power, and metal stocks faced selling pressure. Globally, market performance was mixed, with several Southeast Asian markets posting modest gains, while Northeast Asian markets ended the month lower.

Investor sentiment was supported by rising expectations of interest rate cuts by the US Federal Reserve and the RBI, easing crude oil prices, and an improving geopolitical outlook amid signs of a potential resolution to the Russia–Ukraine conflict. Other key developments during the month included the government announcing new export support schemes with an outlay of ₹450 billion, notification of four labour codes, the signing of a US deal to avert a government shutdown, and a sell-off in global AI-related stocks on valuation concerns. Corporate earnings for 2QFY25 concluded with a healthy earnings growth across key sectors.

On the macroeconomic front, inflation moderated sharply, with CPI inflation easing to 0.25% in October from 1.4% in September, driven largely by food price deflation and the impact of GST rate cuts. Real GDP growth for 2QFY26 stood at a strong 8.2%, improving from 7.8% in Q1FY26. On the flows front, FIIs were net sellers to the tune of USD 909 million, while DIIs were strong net buyers of around USD 8.7 billion.

Market Outlook:

Looking ahead, Indian equity markets are likely to remain supported by a favorable domestic macro environment, moderating inflation, and strong GDP growth. Expectations of monetary easing by global and domestic central banks, stable crude oil prices, and sustained domestic institutional buying should continue to provide a cushion to market corrections. While uncertainties around the India-USA trade deal and valuation concerns in select pockets may create intermittent volatility, India’s strong structural growth drivers, government policy support, and resilient corporate earnings outlook position it better relative to other emerging markets.

Happy Investing!