Mumbai: Indian equity markets touched fresh all-time highs in November and clearly outperformed global markets, a new report said on Wednesday. The data compiled by PL Asset Management said India emerged as a bright spot at a time when many global markets struggled due to weak technology stocks, fading enthusiasm around artificial intelligence and soft economic data from China.
The report noted that record-low inflation, steady domestic growth and reasonable valuations improved the overall outlook for investors. "While global markets remained uneven, India benefited from strong local demand, supportive liquidity and a predictable policy environment," the report said. Inflation played a major role in boosting market sentiment during the month. Consumer price inflation fell sharply to just 0.25 per cent, the lowest level on record and far below the Reserve Bank of India’s target of 4 per cent.
This sharp fall strengthened expectations of further interest rate cuts, which supported equity valuations. Reflecting confidence in the economy, the RBI raised its GDP growth forecast for FY26 to 7.3 per cent. India also recorded strong GDP growth of 8.2 per cent in the second quarter of FY26, reinforcing its position as the fastest-growing major economy in the world, the report said. Domestic economic indicators remained healthy despite global challenges.
Manufacturing activity stayed strong, even though exports were slightly affected by tariffs. Goods and Services Tax collections remained robust at Rs 1.70 lakh crore, as per the report. Festive season spending also supported growth. In addition, India’s current account deficit improved to 1.3 per cent of GDP. Global markets, meanwhile, showed signs of fatigue. US technology stocks faced profit booking, China and Hong Kong markets weakened due to poor economic data, and investors turned to precious metals for safety.
Crude oil prices softened amid expectations of interest rate cuts by the US Federal Reserve. Against this global backdrop, India’s stable fundamentals helped it continue to outperform. Siddharth Vora, Head - Quant Investment Strategies & Fund Manager, PL Asset Management, said, “Indian markets continue to demonstrate relative resilience at a time when global risk assets are undergoing a phase of recalibration."
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