While Sensex and Nifty closed below record highs amid volatility, analysts remain cautiously optimistic, noting that Indian equities have defied global uncertainty to post strong gains this year.

The stock market on Tuesday opened on a flat note but immediately Sensex crossed the 85,000 mark at 85,001.42 and NSE touched all-time high of 25,975 points mainly on account of global optimism. Market expert Ajay Bagga says,

The impact of rate cut by the US Fed continues on the D-Street as the benchmark indices touched new record high with BSE Sensex breaching the 85k mark and the Nifty crossing the 26k level today even as the market ended almost flat compared to previous day.

The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 25,990 level, a premium of nearly 75 points from the Nifty futures’ previous close.

India's NSE Nifty 50 and S&P BSE Sensex are trailing only Wall Street's Nasdaq and S&P 500 as top-performing indexes this year, with analysts expecting the rally to extend into 2025.

After a slow start, Nifty IT gained momentum, rising by 0.7 percent with Tech Mahindra, HCLTech, and TCS leading the rebound.

On Monday, Indian stock indices BSE Sensex and Nifty 50 also reached new record levels. The Sensex rose by 384 points, or 0.45%, to end the day at 84,928.61, after hitting a record high of 84,980 during trading.

After a decisive upside breakout on Friday, the market continued its upward journey on Monday and closed near the day high, not before scaling fresh highs