On the upswing: Equity benchmarks gain for third consecutive month

Rotation out of AI stocks, strong Q2 earnings and FPI buying helped markets hit 14-month highs despite valuation worries

Domestic equity benchmarks gained for the third consecutive month as a rotation out of artificial-intelligence (AI) stocks and growing bets on a global easing cycle have bolstered sentiment. Hopes of a rate cut by the Reserve Bank of India added to the investor cheer.  The benchmarks also hit new highs after 14 months. In November, Sensex rose 2.1 per cent, while the Nifty rose 1.9 per cent. The broader Nifty Midcap 100 rose 2 per cent while the Nifty Small Cap 100 declined 3 per cent. The market capitalisation of BSE-listed firms rose by ₹4 trillion.  Equities have been gaining