Inside Nifty's rise to new highs: Stocks and sectors driving the comeback

Recent upgrades by global brokerages such as HSBC and Goldman Sachs, which have turned overweight on India, have contributed to the upbeat momentum

India's equity benchmark, the Nifty50, is back to hitting fresh records after about 14 months, amid a recovery in earnings and a revival in global flows into the stock market. 

 

Nearly 288 sessions (September 30, 2024, to November 27, 2025) after its last peak on September 27, 2024, the domestic benchmark is finally beginning to catch up with global peers following months of underperformance.

 

The Nifty 50 index rose as much as 0.39 per cent in intraday trade to 26,306.5, surpassing its previous peak of 26,277.5 hit last year. The 30-stock Sensex, too, touched a fresh record moments after the Nifty index. 

 

The first record this year comes after investors went through various battles from valuation headwinds, modest earnings and global risk factors, including the trade deal with the US and geopolitical tensions, which keep foreign flows volatile.

 

Recent upgrades by global brokerages such as HSBC and Goldman Sachs, which have turned overweight on India, have also contributed to the upbeat momentum. Goldman Sachs sees a case for India to perform better next year, with growth-supportive policies, earnings revival, supportive positioning and defensible valuations.   CATCH STOCK MARKET LIVE UPDATES TODAY

Decoding Nifty's run to record  

Since the Nifty’s last peak, the market’s latest record run has thrown up a fresh set of standout performers across segments, even as a handful of stocks continue to lag.

 

Within the Nifty50 index, 26 stocks have delivered gains since last year’s peak, while 24 remain in the red. Trent (down 45 per cent), Tata Motors PV (down 40 per cent) and Bajaj Auto (down 27 per cent) are among the top laggards despite the benchmark scaling a new high.

 

On the other hand, Eicher Motors has surged 42 per cent, followed closely by Bharat Electronics with a 41 per cent rise, while Bajaj Finance has advanced 30 per cent, emerging as some of the index’s strongest performers during the run-up.

 

The momentum has been similar in the midcap space, with 50 stocks advancing in the Nifty Midcap 100 index. BSE has soared 138 per cent, leading the pack, while Paytm and Muthoot Finance rose 94 per cent and 81 per cent, respectively. On the downside, NTPC Green, NHPC and Aurobindo Pharma were top laggards, down almost per cent each.

 

Smallcaps, however, are still showing signs of underperformance, with 64 stocks in the Nifty Smallcap 100 index giving negative returns.  Ola Electric, Tejas Networks, Jindal Saw and Whirlpool of India are down over 50 per cent since the Nifty50 index hit the previous peak.   ALSO READ | Building materials to revive in H2, says Motilal Oswal; top stock bets here

 

Among the winners in the index, Laurus Labs has jumped 113 per cent, MCX has advanced 80 per cent, and Sagility has risen 72 per cent, reflecting firm investor appetite for smaller names during the rally.

 

Sector performance since the Nifty’s September 27, 2024, peak has been mixed, with only a few pockets managing to stay in positive territory. Among the gainers, Nifty Bank has led with a 10.6 per cent rise, while Nifty Metal has inched up 2.7 per cent and Nifty Auto has added a modest 0.69 per cent.

 

Most other major indices have slipped during the period. Nifty Pharma is down 2.65 per cent, Nifty IT has fallen 11.5 per cent, and Nifty FMCG has declined 13.7 per cent. The deepest correction has been in Nifty Realty, which has dropped 18.3 per cent since the benchmark’s previous peak.