How Did Indian Markets Achieve New Heights in November?
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Synopsis
In November, Indian equity markets soared to unprecedented highs, setting themselves apart from global trends. This report reveals the key factors driving India's remarkable performance, including low inflation and strong domestic demand. Discover how India navigated global challenges to emerge as an economic leader.
Key Takeaways
- Indian markets hit **all-time highs** in November.
- **Record-low inflation** at 0.25% bolstered market confidence.
- **GDP growth** forecast raised to **7.3%** for FY26.
- Domestic demand and supportive liquidity contributed to strength.
- Global market fatigue contrasted with India's performance.
Mumbai, Dec 17 (NationPress) The Indian stock markets reached new all-time highs in November, significantly surpassing their global counterparts, according to a recent report released on Wednesday.
The analysis conducted by PL Asset Management highlighted India's emergence as a shining example at a time when several international markets faced challenges, particularly due to declining technology stocks, diminishing excitement around artificial intelligence, and weak economic indicators from China.
The findings indicated that record-low inflation, consistent domestic growth, and reasonable valuations have enhanced the investment landscape.
"Despite a turbulent global market, India has thrived thanks to robust domestic demand, supportive liquidity, and a stable policy framework," the report stated.
Inflation played a crucial role in enhancing market sentiment throughout the month. Consumer price inflation plummeted to a mere 0.25 percent, the lowest ever recorded and significantly lower than the Reserve Bank of India’s target of 4 percent.
This dramatic decline bolstered expectations for more interest rate cuts, thus supporting equity valuations. Reflecting optimism in the economy, the RBI has updated its GDP growth forecast for FY26 to 7.3 percent.
India also saw impressive GDP growth of 8.2 percent in the second quarter of FY26, further solidifying its status as the fastest-growing major economy globally, as per the report.
Domestic economic indicators remained strong despite global headwinds. Manufacturing activities were robust, although exports faced slight pressures due to tariffs.
The report indicated that Goods and Services Tax collections remained strong at Rs 1.70 lakh crore.
The festive season also contributed to economic growth. Additionally, India’s current account deficit improved to 1.3 percent of GDP.
In contrast, global markets exhibited signs of fatigue. US technology stocks faced profit-taking, and the markets in China and Hong Kong weakened due to disappointing economic data, prompting investors to seek safety in precious metals.
Crude oil prices eased amid expectations of interest rate cuts by the US Federal Reserve. In this global context, India's stable fundamentals allowed it to maintain its outperformance.
Siddharth Vora, Head - Quant Investment Strategies & Fund Manager at PL Asset Management, remarked, "Indian markets exhibit relative resilience at a time when global risk assets are entering a recalibration phase."
Point of View
I can confidently state that India's remarkable economic performance during a challenging global climate highlights its resilience and potential. The continued growth in equity markets reflects underlying strengths that investors should recognize and leverage.
NationPress
20/12/2025
Frequently Asked Questions
What contributed to the rise of Indian markets in November?
Several factors contributed to the rise of Indian markets, including record-low inflation, strong domestic demand, and stable economic indicators.
How did global markets perform in comparison to India?
Global markets faced challenges with weak technology stocks and poor economic data, leading to a contrast with India's strong performance.
What is the current GDP growth forecast for India?
The Reserve Bank of India has increased its GDP growth forecast for FY26 to 7.3 percent.
What impact did inflation have on investor sentiment?
The sharp decline in consumer price inflation to 0.25 percent strengthened expectations for further interest rate cuts, positively impacting equity valuations.
What are the key indicators of India's economic health?
Key indicators include strong GDP growth, robust GST collections, and improving current account deficit.
