Dear Investors,
The market rallied in November 2025 and closed the month near all-time highs. Nifty and Sensex closed the month above the important sentiment levels of 26,000 and 85,000 respectively. Large caps outperformed other market cap segments. Though FIIs were net sellers in November, DIIs supported the market with nearly Rs 38,200 crores of net purchase. As far as industry sectors are concerned, sectors like Automobiles, IT, Banks, Financial Services and Telecom outperformed in November, while Realty, Power, Infrastructure, Metals, Capital goods, Oil & Gas and FMCG underperformed. We are likely to continuing sector rotation as we enter the next phase of the rally.
Globally, the US markets ended the month flat. Nikkei (Japan) and DAX (Germany) slid in November, while FTSE (UK) and CAC (France) ended flat. The Shanghai Composite (China) fell by 1.4%. Weakening job market in the United States have raised hopes of Fed rate cut in the December FOMC meeting.
High tariffs are likely to make Indian exports uncompetitive and lead to revenue erosion. India is trying to diversify its exports base in face of changing dynamics in the Indo US trade relationship. India's exports in first half of FY 2025-26 grew by 4% despite the global headwinds.
US Federal Reserve cut federal funds rate by 25 bps in October 2025. This followed a 25-bps rate cut in September. The Fed has acknowledged that "downside risks" to employment (labour market) has increased. Earlier in the last week of September - first week of October, the RBI held repo rate flat in its monetary policy meeting. Bond yields remained flattish with the 10-year bond yield easing by 4 bps.
In the commodities market, precious metals continued their spectacular rally with Gold gaining 4.6%. Gold prices are expected to rise further on hopes of Fed rate cut, rising US Government debt, weakening USD and continuing geo-political instability. The upcoming wedding season demand in India is likely to raise prices of gold even higher. Silver has been one of the best performing asset classes with prices having already doubled in 2025. Crude prices slid below $60 per barrel mark.
India's Q2 GDP growth surprised the market on the upside; Q2 GDP growth rate was fastest in the last 6 quarters. Despite trade headwinds due to US tariffs, 8.2% GDP growth in Q2 shows strong consumption growth in India. Among mutual funds, other than Gold and Silver FOFs, multi asset allocation funds, thematic / sectoral funds like BFSI, Transportation and Logistics, IT etc. and large cap funds were among the top performing mutual fund categories.
As we approach the final month of this calendar year the RBI MPC meeting in first week of December, outcome of Indo US trade talks and the Union Budget in January 2026 will be among the most important events. Market sentiment is generally bullish, and positive news will provide legs for the next phase of the rally. Investors should remain disciplined and continue to invest through SIP.
Assuring you of our best services.
Best Wishes,
Ajoy Agarwal,
(Managing Director)
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