Mumbai: Indian equity markets scaled unprecedented heights on Thursday as the benchmark Sensex breached the 86,000 mark for the first time ever, while the Nifty 50 index surged past the 26,300 level. However, the historic rally lost momentum in afternoon trades as investors locked in profits at higher levels, leading both indices to close nearly flat.
The 30-share BSE Sensex soared to a record intraday high of 86,055.86, while the broader Nifty 50 hit its all-time peak of 26,310.45 during the session. This marked the Nifty’s first record high in 14 months, since September 2024.
Volatile Session Sees Sharp Pullback
The trading session witnessed extreme volatility as the initial euphoria gave way to profit booking. From its day’s high, the Sensex plunged over 580 points, while the Nifty fell nearly 170 points from its peak. The markets also felt the impact of the monthly derivatives expiry, which typically adds to intraday volatility.
At closing bell, the Sensex settled at 85,720.38, up 110.87 points or 0.12%, while the Nifty 50 ended at 26,215.55, gaining 10.25 points or 0.04%.
Multiple Factors Drive Initial Rally
The record-breaking opening was fueled by sustained foreign institutional investor (FII) buying, with data showing net purchases of ₹4,778 crore in the previous session. Positive global cues, driven by expectations of a US Federal Reserve rate cut in December, also supported the bullish sentiment.
“There is fundamental support for this rally. Earnings in Q3 and Q4 of FY26 are likely to be good. The consumption boom seen in October will now get reflected in corporate earnings,” said Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Sectoral Performance Mixed
The banking and financial stocks led the gains during the early rally, with Bajaj Finance, Bajaj Finserv and ICICI Bank among the major contributors. Larsen & Toubro and Asian Paints also supported the upward move.
However, Kotak Mahindra Bank, Maruti Suzuki and Titan faced selling pressure as the session progressed. Shares of One 97 Communications (Paytm) gained after its subsidiary received final authorization from the RBI to function as a Payment Aggregator.
Technical analysts noted that the 26,250-26,300 zone is acting as a major resistance for the Nifty. A sustained break above 26,300 could open the doors for a move towards 26,500, according to market experts.