The Indian stock market rallied on Friday, tracking positive global cues and strong domestic fundamentals. The benchmark Sensex climbed over 350 points to trade near the 82,000 level, while the Nifty 50 crossed 25,100, gaining 0.5% each. Broader markets also supported the uptrend, with the Nifty Midcap 100 and Nifty Smallcap 100 trading in the green. The Bank Nifty index edged 0.3% higher.
Sectoral performance was mixed. Nifty Pharma, Auto, IT, Private Bank and Metals led the gains, while FMCG, PSU Bank and Media indices witnessed selling pressure.
The rally in the Indian stock market today was fuelled by optimism over the India-US trade deal, GST reforms, expectations of supportive interest rate policy amid soft inflation, and resilient macroeconomic conditions.
“Strong domestic macros — robust GDP growth, GST reforms, tax and rate cuts, low inflation, healthy liquidity, supportive DXY and bond yields, alongside peaked-out downgrades and mutual fund cash levels at 5–6% — all point to a firm base for Indian equities,” said Siddharth Vora, Head of Quant and Fund Manager, PL Asset Management.
Vora noted that while global risks persist, improving US-India relations, stable domestic inflows, and improving factor spreads set the stage for a broad-based recovery over the next 12–18 months.
“This makes it an opportune time to shift from a defensive to a moderately aggressive stance,” Vora said.
Can Nifty 50 Hit Record High Soon?
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said fundamental factors remain conducive for a rally.
“The combined effect of the reforms – the income tax cuts in the Budget 2025, the rate cuts by the MPC and the GST rate cuts and rationalisation – has the potential to push India’s GDP growth higher, and more importantly from the market perspective, the earnings growth for FY27 will be significantly higher at above 15%,” said Vijayakumar.
According to him, the Nifty 50 could scale fresh record highs by the end of 2025 or early 2026 as investors begin discounting this growth outlook.
Mohit Gulati, CIO and Managing Partner at ITI Growth Opportunities Fund noted that with India’s macros steadily improving, festive demand kicking in, and GST benefits trickling down to consumers, market momentum looks well-supported.
“Add to this the thaw in India–US relations after months of impasse, the Nifty 50 could comfortably test the 25,600 mark by Diwali. That said, to move decisively beyond, corporate earnings upgrades will be critical. Nearly 80% of the index already trades at the higher end of historical P/Es, so only a combination of PE re-rating and stronger growth can push the markets to new highs by end-2025,” Gulati said.
Technical Outlook
On the technical front, the Nifty 50 has surpassed the 25,100 hurdle. Analysts expect sustained momentum above this level could open the door to 25,240 in the near term.
“The Nifty 50, hovering in the 25,050–25,100 range, reflects a neutral to mildly bullish undertone. Buying support at 24,951 is cushioning downside risks, while call-heavy resistance between 25,072 – 25,200 continues to cap the upside. However, the Put-Call Ratio at 0.59 indicates a certain degree of nervousness in the market, suggesting cautious positioning by traders despite the index’s resilience,” said Ponmudi R, CEO of Enrich Money.
He added that a decisive breakout above 25,072 could unlock momentum toward 25,400, while a breach below 24,900 may drag the index down to 24,750.
Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking, said Nifty must cross the 25,160 – 25,400 range for further upside. Axis Securities also highlighted that a breakout above 25,300 could fuel a rally toward 25,500 – 25,600.
Portfolio Strategy
Siddharth Vora said his strategy remains skewed toward large-cap and mid-cap stocks with ~80% allocation (40% each), while small-caps are capped below 20%.
“Sectorally, our overweight remains in Materials and Financials, supported by selective exposure to Consumption (Discretionary), Industrials, Autos, and Healthcare. Within Financials, we prefer Capital Markets, AMCs, and select NBFCs; within Materials, Metals, Mining, Cement, and Chemicals continue to offer attractive growth and valuation opportunities,” he added.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
