Record-Breaking December 1st! Sensex, Nifty Hit New Highs, Bank Nifty Over 60K 1st Time; 5 Reasons Why

Indian stock market witnessed a record-breaking opening on December 1st, with Sensex and Nifty hitting a new lifetime high. Bank Nifty crossed the 60,000 mark for the first time ever. The majority of indices are trading bullish with the exception of FMCG stocks. Metal stocks lead the rally, followed by auto and PSU bank stocks. The performance in domestic equities comes after India recorded an 8.2% GDP growth rate in Q2, marking a six-quarter high.

Sensex, Nifty Performance:

In the opening bell, Sensex touched a new historic high of 86,159.02, and Nifty clocked a new peak of 26,325.80.

At the time of writing, Sensex traded at 86,018.59, higher by 311.92 points or 0.36%. While Nifty 50 surged by 82.45 points or 0.32% to trade at 26,282.35.

Among the top performers are -- JSW Steel, Adani Ports, Eternal, BEL, TMPV, SBI, ONGC, Kotak Bank, HCL Tech, and Eicher Motors.

ITC share price emerged as the top loser on both the benchmarks.

"New record highs for the Nifty appear set to become the new norm, buoyed by India's Q2 FY26 GDP print of 8.2% and broad-based sectoral strength," Prashanth Tapse, Senior VP (Research), Mehta Equities added, "Attention now turns to whether foreign investors shift from steady offloading to meaningful buying on hopes of further rate cuts, earnings upgrades and India's rising weight in global indices."

Geopolitically, Russian President Vladimir Putin's 4-5 December visit for the 23rd Annual Summit adds a layer of strategic significance.

Notably, bulls trended on Indian stocks despite mixed tones in Asian cues. Japan's Nikkei 225 is down by 1.3%, but Hong Kong's Hang Seng surged 1%. Also, US futures traded lower.

5 Key Reasons Behind Market's Record Rally:

1. India Blockbuster GDP Growth:

India's gross domestic products (GDP) rose to 8.2% in September 2025 quarter, surpassing market estimates of 7.3% and better than Q1's growth rate of 7.8%. The latest GDP rate is the sharpest growth since March quarter of 2024, which further signals resilience of India's economy despite the 50% tariffs slapped by US President Donald Trump.

"Even amid headwinds such as US tariffs, our manufacturing and services sectors have demonstrated extraordinary adaptability and momentum. This performance reaffirms India's position as the world's fastest-growing major economy and strengthens confidence as we head into FY26," said Dr Anish Shah, Group CEO & MD, Mahindra Group.

2. Bank Nifty Crossing 60,000

Majority of indices have touched a new high on December 1st. For instance, Nifty Financial Services touched a new peak of 28,065.50, while Nifty Midcap 100 climbed to new record of 61,250.85. But key performer is Bank Nifty who touched a new all-time high of 60,102.05. Banks have big weightage on Nifty, especially HDFC Bank.

Heavyweight stocks like Kotak Bank, Bank of Baroda, Canara Bank, PNB, ICICI Bank, Axis Bank and HDFC Bank saw huge buying. However, PSU Bank stocks outperformed private banks.

Outlook for Bank Nifty remains bullish. Ponmudi R, CEO of Enrich Money said, the bullish structure across benchmarks remains intact, supported by ongoing institutional flows into financials, improving credit growth sentiment, and expectations of upcoming rate cuts. Banking and financials are likely to lead any fresh leg higher ahead of the RBI policy event. Prefer buying on dips near key supports and stay light or hedged only below major support zones," said Ponmudi.

3. Top Performing Stocks!

Nifty Metal is the best performer on December 1st, rising by more than 1% to hit an intraday high of 10,418.90. Stocks like Hindustan Copper, NALCO, Hindustan Zinc, and Vedanta surged by 1.5% to 3%. This comes after silver rates in India touched new record. Also, the appetite for metals surged on expectations of improving global demand and stimulus hopes from China.

Meanwhile, Nifty Auto index followed by hitting new 52-week high of 28,017.30, with upside of nearly 1%. Auto stocks will be in focus due to their monthly sales figures and expectations of demand surge in wedding season and year-end. Stocks like TVS Motor, Hero MotoCorp, UNOMinda,TMPV, Maruti Suzuki and Eicher Motors climbed by 1% to 2.5%.

With the exception of FMCG, consumer durables and pharma stocks, all other indices are trading higher.

4. Parliament Winter Session:

The Parliament's winter session has commenced from December 1st, and will continue till December 19th. This will be the 18th session of Lok Sabha and 269th session of Rajya Sabha. As per reports, the NDA government is likely to discuss packed legislative agenda, introduce approximately 13 bills, including key proposals that would be pivotal to the economy and national security. Also, bills like Central Excise Amendment Bill, 2025, and the Health Security National Security Cess Bill, 2025 is also expected to be tabled.

5. Upcoming RBI Policy:

The Reserve Bank of India (RBI) will announce its key rates decision on Friday. The six-member Monetary Policy Committee (MPC), chaired by RBI governor Sanjay Malhotra, will begin their 3-day policy meeting from December 3rd to December 5th. The market is factoring in a 25 basis point rate cut after CPI inflation rate dropped to 0.25%, which is the lowest on record.

"We expect the RBI to announce a 25-basis-point rate cut, supported by benign headline inflation. Food prices are likely to remain in deflation, keeping overall inflation comfortably below target through the end of the fiscal year, aided further by the pass-through of GST rate cuts. Although India is projected to grow at 7% in FY26, this remains below the economy's estimated potential," said Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Group.

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