Stock market today: Nifty50 and BSE Sensex, the Indian equity benchmark indices, rallied strongly in trade on Thursday. While Nifty50 went above 25,600 intra-day, BSE Sensex soared over 1,000 points during trading hours. Nifty50 ended the day at 25,585.30, up 262 points or 1.03%. BSE Sensex closed at 83,467.66, up 862 points or 1.04%.Indian equity markets sustained their upward momentum on Thursday, as financial and consumer durable sectors fuelled widespread gains across Sensex and Nifty indices. The positive sentiment was driven by anticipated improvement in corporate earnings and fresh foreign capital inflows.Over the previous two trading sessions, the Sensex accumulated gains exceeding 1,500 points, whilst the Nifty registered a 1.9% increase during this period.
Why did Nifty50, BSE Sensex rally?
1. Private banks spearhead advancesPrivate sector banks led Thursday’s market upturn following Axis Bank’s second quarter performance, which demonstrated enhanced asset quality and net interest margins that surpassed expectations, according to an ET report.Despite the bank recording a higher-than-expected decline in quarterly profits, analysts viewed the improved operational performance and strengthened balance sheet positively.Market heavyweights HDFC Bank and ICICI Bank, which carry the highest weightage in benchmark indices, both advanced by 1.4% ahead of their forthcoming earnings reports this week.2. Foreign investors inject fresh capitalFIIs have shifted their stance in October, with net purchases of over Rs 3,000 crore in Indian equities across seven trading sessions. This reversal from continuous selling has provided support to market indices, suggesting a potential shift in foreign investor outlook.According to NSDL figures, FIIs were net purchasers in five out of seven sessions between October 7 and October 14, investing more than Rs 3,000 crore in secondary markets. Their primary market investments were substantial at Rs 7,600 crore plus. NSE provisional data shows additional inflows of Rs 68 crore on October 15.The selling intensity has decreased considerably from prior months’ outflows of Rs 22,761 crore in September, Rs 41,908 crore in August, and Rs 38,214 crore in July 2025.3. India-US trade deal discussions boost market confidenceMarket sentiment received additional support from anticipated developments in India-US trade relations. The US administration’s recent statements indicate reduced trade friction with India and suggest potential trade agreement progress shortly, according to Dr. V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.Vijayakumar observed that China’s strict controls on rare earth magnets have impacted the US, increasing its interest in reaching an agreement with India, with both nations likely to offer compromises.“Even though India’s macro fundamentals remain strong and GDP growth projections for FY26 are being revised upward, exports and employment in labour-intensive sectors such as textiles, gems and jewellery, and leather products have been hit hard. In this context, a US–India trade deal would be a major boost for the markets,” he added.4. Currency Movements Boost Market SentimentThe Indian rupee strengthened to 87.8125 against the US dollar on Thursday, reaching a one-month peak. This appreciation was attributed to central bank intervention, dollar weakness, and US President Donald Trump’s statement regarding Prime Minister Modi’s commitment to cease Russian oil imports.The dollar index, measuring the US currency against six major peers, declined 0.28% to 98.51.According to Reuters, the Reserve Bank of India’s substantial forex market intervention on Wednesday altered options market dynamics, with a key volatility indicator favouring the rupee for the first time in over ten years.The rupee recorded its strongest performance in four months on Wednesday, continuing its upward trajectory on Thursday with a rise exceeding 1% from its previous near-record low.5. Corporate Performance Drives Market GainsBanking heavyweights HDFC Bank and ICICI Bank advanced by 1.8% and 1.5% respectively, whilst Reliance Industries gained 1.9%. These three major companies are scheduled to announce their quarterly results this week.Mangalore Refinery and Petrochemicals saw a 2.4% increase after reporting a profit, reversing its loss from the previous year.Oberoi Realty’s shares rose 4.1% following a 29% increase in second-quarter profit, while Huhtamaki India experienced a 12% surge after reporting a threefold profit increase.Eternal, Zomato’s parent company, reached a new 52-week high of Rs 368.45, rising 4% after announcing September-quarter operational revenue of Rs 13,590 crore, representing a 183% increase from Rs 4,799 crore in the corresponding period last year.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
