Markets opened significantly higher on Thursday morning, with the Sensex moving up from its previous close of 84,426.34 to 85,154.15, further climbing by 748.83 points (0.89 percent) to reach 85,175.17 at 9:50 AM. Similarly, the Nifty increased from its prior close of 25,868.60 to open at 26,057.20 and was last observed at up 210.35 points (0.81 percent) at 26,078.95. This rally was fueled by optimism surrounding a potential India–US trade agreement and positive sentiment in the domestic market following the festive period.
Reports indicated that the US is preparing to reduce tariffs on Indian imports to 15-16 percent, a move that could enhance India’s export competitiveness. “The expected deal requires some concessions from both parties. If the reported tariff reduction to 15-16 percent on Indian exports to the US takes place, it would significantly benefit the Indian economy and provide a major boost to stock markets,” stated Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
Information Technology stocks led the gains, with Infosys rising by 3.33 percent to ₹1,521.50, HCL Technologies up 2.71 percent to ₹1,526.30, and Tech Mahindra increasing by 2.20 percent to ₹1,480.50. The banking sector also played a role in the market rally, with Axis Bank gaining 2.10 percent to ₹1,263.30, while Tata Steel added 1.56 percent to ₹175.48.
Conversely, several stocks experienced losses, including IndiGo, which fell 1.23 percent to ₹5,840.00, Cipla, which declined 1.04 percent to ₹1,646.30, and Eicher Motors, down 0.68 percent to ₹6,971.00. Additional losses were noted for Eternal, which dropped 0.46 percent to ₹336.55, and Dr. Reddy’s Laboratories, which slipped 0.43 percent to ₹1,283.20.
“The Indian equities started on a strong note today, fueled by optimism regarding the India-US trade deal and solid domestic sentiment post-festival break. The Nifty 50 opened higher and is currently testing the vital 26,000 mark, suggesting potential for a breakout to new record highs,” noted Ponmudi R, CEO of Enrich Money.
Foreign Institutional Investors continued their buying spree for the fifth consecutive session on October 21, acquiring equities worth ₹96 crore. In contrast, Domestic Institutional Investors turned net sellers, offloading equities valued at over ₹600 crore during the same period.
Despite global challenges, such as renewed US-China trade tensions and a US decision to impose a 40 percent trans-shipment tariff, domestic market sentiment remained strong. “The market rally initiated during the festival season is set to accelerate, facilitating the Nifty to reach new record highs. Unprecedented sales recorded in recent days have the potential to improve corporate earnings,” said Dr. Vijayakumar.
Technical analysts expressed cautious optimism regarding short-term market prospects. “On the downside, immediate support is available at 25,800, followed by 25,700, while resistance is anticipated at the 26,100 and 26,200 levels,” indicated Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking Private Limited.
The Bank Nifty demonstrated strength after maintaining levels above 58,000, though it faced resistance near 58,500. “The Bank Nifty continues to show strength after breaking above 58,250, with forecasted resistance levels at 58,500-58,800, while immediate support lies between 58,250-58,000,” Ponmudi R commented.
In the commodity markets, gold stabilized around $4,050 per ounce following a sharp correction, while crude oil prices exhibited volatility in response to US sanctions against Russian producers. “We anticipate crude oil prices to remain volatile throughout today’s session,” stated Rahul Kalantri, VP Commodities at Mehta Equities Ltd.
Published on October 23, 2025.
