Last Updated on October 16, 2025 5:12 pm by INDIAN AWAAZ
Analysts expect near-term volatility ahead of major Q2 earnings announcements, but remain bullish on India’s growth story, supported by strong domestic consumption, resilient corporate earnings, and global risk-on sentiment.
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Domestic benchmark indices Sensex and Nifty50 extended their winning momentum on Thursday, surging over a per cent each amid strong global cues, upbeat Q2 corporate earnings, and renewed optimism around an India–US trade deal.
The BSE Sensex jumped 927 points or 1.12% to close at 83,532.64, after hitting an intraday high of 83,571, while the NSE Nifty50 advanced 282.75 points or 1.12% to end at 25,606.3, crossing the 25,600 mark for the first time.
Market Breadth and Sectoral Performance
The rally was broad-based, with 27 of the 30 Sensex constituents trading in the green. Key gainers included Titan, Kotak Mahindra Bank, Axis Bank, Mahindra & Mahindra, Adani Ports, Trent, ICICI Bank, HDFC Bank, HCL Tech, and Tata Motors, rising between 1–3%.
All major sectoral indices ended higher, underscoring widespread market optimism.
- 🔹 Auto Index: The Nifty Auto index led the charge with a 4.35% jump, buoyed by robust festival season demand outlook and stronger sales forecasts from automakers like Tata Motors and M&M.
- 🔹 Consumer Durables: The Nifty Consumer Durables index surged 3.22%, driven by festive spending expectations and positive management commentary from major players such as Titan.
- 🔹 Banking & Financials: The Nifty Bank and Financial Services indices climbed up to 3%, led by Axis Bank, Kotak Mahindra Bank, and HDFC Bank following healthy Q2 updates and improved credit growth outlook.
- 🔹 FMCG: The FMCG index advanced nearly 2%, supported by gains in Nestlé India and Hindustan Unilever amid easing input cost pressures.
- 🔹 Metals & Realty: Both Metal and Realty indices rose close to 2.5–3%, reflecting optimism on China’s stimulus measures and sustained demand recovery in India’s property market.
- 🔹 IT Sector: The Nifty IT index posted modest gains of around 1%, led by HCL Tech and Infosys, as investors cheered a stable global demand environment.
In the broader market, the NSE MidCap 100 index gained 0.56%, while the Nifty SmallCap 100 rose 0.17%, signaling a steady risk appetite among investors.
Corporate Earnings Boost Sentiment
Earnings optimism further fueled the rally. Nestlé India was the top gainer on the Nifty50, soaring nearly 4% to a 52-week high of ₹1,281.20, after reporting strong Q2FY26 results. Axis Bank and ICICI Bank also rallied on the back of robust quarterly numbers.
Ahead of their results, HDFC Bank and Reliance Industries gained over 1% each, contributing significantly to the benchmark rally.
Global and Policy Cues
Investor sentiment was buoyed by positive global market trends and easing bond yields in the US, signaling potential rate stability by the Federal Reserve.
Additionally, optimism around an impending India–US trade agreement lifted domestic sentiment. According to reports, both nations are nearing consensus on key trade issues, with Commerce Secretary Rajesh Agrawal joining the Indian delegation in Washington on Thursday to advance negotiations.
Analysts expect near-term volatility ahead of major Q2 earnings announcements, but remain bullish on India’s growth story, supported by strong domestic consumption, resilient corporate earnings, and global risk-on sentiment.
“The market rally reflects a mix of strong fundamentals, positive earnings momentum, and easing global headwinds. Auto and banking are likely to lead the next leg of the rally,” said a senior market strategist at a leading brokerage firm.