Jan 2 (Reuters) - India's benchmark Nifty 50 rose to a record high of 26,331.40 on Friday in a broad-based rally, as upbeat corporate updates lifted expectations for quarterly earnings and boosted investor sentiment.
The Nifty 50 index rose as much as 0.71%, while the BSE Sensex index added 0.67% to 85,760.1, as of 3:12 p.m. IST.
"We expect earnings to beat, the RBI to keep its foot on deregulation, more reforms from the government and a potential trade deal with the U.S. in this quarter," said Ridham Desai and Nayant Parekh, equity strategists at Morgan Stanley India in a note on Friday.
After the underperformance over emerging market peers in 2025, relative valuations have corrected meaningfully while most importantly India is set for a positive growth surprise in the coming months, Morgan Stanley analysts said.
The blue-chip indexes had hit record highs in November, but had eased last month on foreign outflows.
(Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Rashmi Aich)
By Bharath Rajeswaran and Vivek Kumar M
