Benchmark indices extended their winning streak for the second consecutive session on Thursday, with the Sensex surging 862.23 points, or 1.04 per cent, to close at 83,467.66, while the Nifty gained 261.75 points, or 1.03 per cent, to settle at 25,585.30, breaching the psychological 25,600 mark intraday for the first time since June 27.
The rally was broad-based, led by banking, FMCG and realty stocks, driven by optimism surrounding domestic earnings recovery, positive global cues, and hopes of progress in India-US trade negotiations ahead of the November deadline. The RBI’s monetary policy meeting minutes signaling room for further rate cuts amid falling inflation further boosted sentiment.
Nestle India topped the Nifty gainers, surging 4.76 per cent to ₹1,279.50, followed by Tata Consumer Products (3.10 per cent to ₹1,148.70), Titan (2.45 per cent to ₹3,636.00), Axis Bank (2.25 per cent to ₹1,195.90) and Kotak Mahindra Bank (2.11 per cent to ₹2,195.00). On the losing side, Eternal topped the decliners, falling 3.91 per cent to ₹340.50, followed by HDFC Life (2.38 per cent to ₹743.00), Shriram Finance (0.54 per cent to ₹673.50), Infosys (0.24 per cent to ₹1,470.90) and Jio Financial Services (0.18 per cent to ₹312.10).
Sectoral performance remained decisively positive, with all indices except Nifty PSU Bank closing in the green. Nifty FMCG surged 2 per cent, Nifty Realty gained 1.75 per cent, while Nifty Bank advanced 1.10 per cent to 57,422.55, gaining 622.65 points. Nifty Financial Services rose 1.14 per cent to 27,381.20, adding 309.40 points.
“Domestic equities extended their strong recovery rally, buoyed by positive global cues and renewed optimism surrounding India–US trade discussions,” said Vinod Nair, Head of Research at Geojit Investments Limited. “Sentiment was further lifted by expectations of a Q3FY26 demand revival, early signs of FII inflows, supported by dovish commentary from the US Fed, and a softer dollar index.”
Market breadth was moderately positive with 2,330 stocks advancing against 1,871 declining on BSE, while 165 stocks hit 52-week highs compared to 92 touching 52-week lows. The broader indices underperformed, with Nifty Midcap 100 gaining 0.46 per cent to 59,241.15 and Nifty Next 50 rising 0.49 per cent to 69,453.20.
Nilesh Jain, Head of Technical Research at Centrum Broking, noted, “The bulls remained in control for the second straight session as Nifty crossed the psychological hurdle of 25,500. The index also broke out above a major falling trend line that connects all key tops since the previous record high of 26,277, indicating the potential for further upside in the coming sessions.”
The rupee continued its uptick, with gap opening of 0.25 per cent at 87.83, supported by likely RBI intervention. “The central bank is expected to continue its intervention every time there is fall seen in rupee,” said Jateen Trivedi, VP Research Analyst at LKP Securities. “Resistance for the rupee is seen near 87.75, where RBI is less likely to step in.”
In commodities, spot gold extended its rally for the fourth consecutive session, surging past $4,200 per ounce and hitting a record high of $4,218, driven by escalating US-China trade tensions. On Thursday, gold traded above $4,230 per ounce and gained ₹900 on MCX to ₹1,28,100. “With traders closely watching for any signs of government reopening, gold is likely to remain elevated in the near term,” said Trivedi. WTI crude oil held near a five-month low near $59 per barrel amid ongoing US-China trade tensions and concerns about a potential supply glut in 2026.
Technical analysts remained bullish on the near-term outlook. “The benchmark index Nifty has delivered a strong breakout above the downward-sloping trendline on the daily chart, accompanied by the formation of a sizeable bullish candle,” said Sudeep Shah, Head of Technical Research at SBI Securities. “Given the current chart structure and momentum setup, the index appears well-positioned to extend its northward journey. In the short term, Nifty is likely to test the levels of 25,700, followed by 25,850.”
Bank Nifty is trading within close proximity to its all-time high, with analysts expecting it to test the 58,000 level in the short term. “Bank Nifty extended its winning streak, closing on a strong note above the 57,400 mark, near its record high levels,” said Hardik Matalia, Derivative Analyst at Choice Equity Broking. “A sustained move above the record high could trigger fresh buying interest and open the door for further upside in the coming sessions.”
Looking ahead, market participants will closely watch Infosys’s Q2 results on Friday, along with upcoming earnings from HDFC Bank and ICICI Bank over the weekend, which will play a key role in sustaining momentum. “Traders should maintain a ‘buy on dips’ approach, focusing on sectoral rotation and strong stock-specific setups,” said Ajit Mishra, SVP Research at Religare Broking.
Published on October 16, 2025
