Amid progress in U.S.-China trade talks and growing expectations of a U.S. Federal Reserve rate cut, key Asian markets witnessed a strong rally on Monday, October 27, which spilled over to Dalal Street, prompting frontline indices to resume their recent winning run.
Buying was seen across sectors, sending the Nifty 50 up 0.66% to 25,966, with the index briefly crossing the 26,000 mark for the second time this month. The S&P BSE Sensex also gained 0.67%, ending the day at 84,778 compared to Friday’s close.
Broader markets advanced as well, with the Nifty Midcap 100 surging 0.95%, while the Nifty Smallcap 100 rose 0.83%.
Among sectoral indices, the Nifty PSU Bank index stole the spotlight, rallying 2.22% to end at a record high of 7,990. The Nifty Oil & Gas index also displayed similar strength, rising 1.52%, followed by the Nifty Realty and Nifty Metal indices, which gained 1.46% and 1.16%, respectively.
The Nifty Auto and Nifty IT indices also advanced, rising 0.4% each. On the downside, the Nifty Media and Nifty Pharma indices registered losses of over 0.20% each.
U.S. President Donald Trump said Monday that Washington and Beijing were poised to “come away with” a trade deal ahead of his expected meeting with Chinese leader Xi Jinping. Speaking aboard Air Force One en route to Japan from Malaysia, Trump added that he could sign a final deal on TikTok as early as Thursday, according to media reports.
Trump is set to meet Chinese President Xi Jinping later this week as part of his trip to Asia.
U.S. Treasury Secretary Scott Bessent said Sunday that U.S. and Chinese officials had worked out a “substantial framework” for a trade deal that would avert 100% U.S. tariffs on Chinese goods and delay China’s planned rare-earth export controls ahead of trade discussions this week.
Midcap IT and PSU banking stocks led the charge
Looking at the gainers’ pack today, tech and banking stocks led the rally, with shares of Firstsource Solutions, Netweb Technologies, eClerx Services, and Coforge gaining 8.1%, 7.7%, 4.8%, and 4%, respectively.
In late trade, public sector banks staged a stellar rally after reports emerged that the government is considering allowing up to 49% direct foreign investment in state-run banks. Reacting to the news, Bank of India jumped 4.3% to ₹139.7 apiece, while City Union Bank rose 3.8% to ₹231.6 apiece.
Other banks such as Canara Bank and Bank of Baroda also edged higher by over 2.5%. Meanwhile, the continued rise in domestic markets brought capital market stocks into the spotlight, with Anand Rathi Wealth, Nuvama Wealth Management, Multi Commodity Exchange, and CDSL rising between 3% and 3.5%.
Federal Bank closed 2.9% higher at ₹234 after brokerages raised their target prices on the stock, citing that Blackstone’s planned $705 million investment in the lender eases equity dilution concerns amid below-trend loan growth.
Additionally, all three oil marketing companies (OMCs) — Hindustan Petroleum, Indian Oil Corporation, and Bharat Petroleum — gained up to 3.8%. Ather Energy also extended its gains, rising another 4% to end at ₹734 apiece.
Besides, Vodafone Idea rallied 3.6% to close at ₹10 per share after the Supreme Court allowed the government to reassess its demand related to Vodafone Idea’s adjusted gross revenue (AGR) dues.
The case pertains to Vodafone Idea’s petition filed last month challenging the Department of Telecommunications’ (DoT) demand for an additional ₹9,450 crore in AGR dues.
Zen Technologies, Adani Power and SBI Cards and Payments are among top laggards
Zen Technologies emerged as the top laggard among the Nifty 500 pack, losing 4.1% to ₹1,339.8 apiece, after the company’s September quarter earnings failed to impress the Street.
Similarly, SBI Cards and Payment Services tumbled 3% to ₹900 following the release of its Q2 results. Though the company reported improved asset quality, it missed analysts’ estimates on key parameters.
Cohance Lifesciences, Wockhardt, and Adani Power also came under pressure, each declining over 3%. Other key stocks, including Ola Electric, Ceat, Britannia Industries, Syrma SGS Technology, Brainbees Solutions, and Gujarat Fluorochemicals, also edged lower by more than 2%.
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