Nifty, Sensex steady amid signs of recovery analysts see upside ahead
Indian stock markets began November on a cautious yet steady note, with benchmark indices opening marginally lower, continuing their consolidation phase amid improving domestic fundamentals. The Nifty 50 opened at 25,696.85, down 25.25 points or 0.10 per cent, while the BSE Sensex started at 83,835.10, slipping by 103.61 points or 0.12 per cent.
Despite this muted start, market analysts believe the underlying fundamentals of the Indian economy and corporate earnings have strengthened considerably compared to last year. A recent report by Motilal Oswal Financial Services highlighted that the earnings cycle appears to be bottoming out, suggesting a healthier setup for equities in the coming quarters.
Earnings* *r* *ecovery and* *v* *aluation* *c* *omfort :
According to Motilal Oswal, earnings for the second quarter of FY26 have largely been in line with expectations, with the intensity of earnings downgrades easing. The report pointed out that the Nifty is currently trading at 21.4 times forward earnings, which is close to its long-period average (LPA) of 20.8 times indicating valuations are not overstretched.
“Although Indian equities have registered a lackluster performance over the past one year, the markets now appear to be in a healthier state versus last year,” the report said. It further added that growth is expected to accelerate into double digits going forward, supported by government-led reforms and a likely resolution of tariff disputes with the United States.
Consolidation* *p* *hase and IPO* *m* *omentum :
The broader market continues to show mixed trends. While large caps remain range-bound, the mid- and small-cap segments continue to attract selective investor interest despite expensive valuations. Market expert Ajay Bagga told ANI that “Indian markets are seeing promoters, PE funds, and FPIs encashing their holdings while Indian retail flows via mutual funds and insurance routes are providing them an easy exit.”
He added that the markets have gone through 13 months of underperformance, and historically, such phases have often been followed by strong outperformance provided global conditions remain stable. Bagga also noted that the upcoming India-US trade deal and Bihar state elections could play key roles in influencing near-term market sentiment.
Meanwhile, November is shaping up to be a busy month for the primary market, with IPOs worth over ₹70,000 crore in the pipeline. The much-talked-about Lenskart IPO, despite valuation concerns, saw strong demand fully subscribed in the retail segment on the first day. Institutional investors led the bidding, with QIBs subscribing 1.42x and retail investors 1.31x on Day 1.
Nifty and Sensex* *-* *A* *j* *ourney* *t* *hrough the* *d* *ecade :
India’s benchmark indices have come a long way since the pre-COVID period. The Sensex, which hovered around 41,000 in early 2020, plunged to nearly 26,000 in March 2020 as the pandemic rattled global markets. Similarly, the Nifty 50 tumbled from 12,000 levels to around 7,500 during the same period.
However, aggressive monetary stimulus, robust domestic consumption, and a surge in retail participation fueled a remarkable rebound. By 2022, the Sensex had climbed past 60,000, and the Nifty 50 regained the 18,000 mark, reflecting India’s economic resilience amid global uncertainty.
Between 2022 and 2025, markets experienced alternating periods of exuberance and correction shaped by inflation concerns, global interest rate cycles, and geopolitical risks. Yet, steady corporate earnings growth, strong FPI inflows, and expanding retail participation kept the long-term trajectory positive. As of November 2025, the Sensex hovers around 83,800 and the Nifty near 25,700, marking a near 110% rise from pre-pandemic levels.
Sectoral* *p* *erformance and* *e* *xpert* *v* *iews :
In early trade today, Nifty PSU Bank led the gains with a 0.62% rise, while Nifty Auto advanced 0.15%. Sectors such as IT, FMCG, and Media opened in the red, indicating a mixed sentiment across industries.
Sunil Gurjar, Founder of Alphamojo Financial Services, noted that “The Nifty 50 has remained flat for consecutive weeks after a strong uptrend, indicating a consolidation phase. A breakout above the resistance level of 25,265 would signal a continuation of the uptrend and possibly a new all-time high.”
On the earnings front, data compiled by Motilal Oswal revealed that among 27 Nifty companies, aggregate sales, EBITDA, PBT, and PAT grew 9%, 8%, 5%, and 5% year-on-year, respectively slightly above estimates. While five companies exceeded PAT expectations, seven fell short, and fifteen reported in-line results.
Drag factors included Coal India, Axis Bank, HUL, Kotak Mahindra Bank, and Eternal, which collectively pulled down the index earnings.
Global and* *d* *omestic* *t* *riggers* *a* *head :
The near-term outlook for Indian equities hinges on three crucial triggers: a sustained recovery in earnings growth, stability in the rupee, and meaningful progress on the Indo-US trade framework. On the global front, sentiment remained positive, with Hong Kong’s Hang Seng rising 0.48 per cent and South Korea’s KOSPI surging over 2 per cent, while markets in Singapore and Japan were closed for holidays. Domestically, analysts expect the combination of earnings revival and reasonable valuations to support a medium-term upside in Indian equities, though they caution that volatility may persist as global monetary policy shifts and geopolitical developments continue to influence capital flows.
Outlook :
Overall, while the Indian markets may appear range-bound in the short term, the underlying economic indicators supported by moderating inflation, stable interest rates, and strong domestic liquidity suggest that the foundation for the next growth phase is already being laid.
As Motilal Oswal’s report summed up, “Any signs of earnings growth acceleration should support valuation expansion.” With consolidation giving way to renewed optimism, Indian equities may soon enter a fresh phase of outperformance in the months ahead.