Key Takeaways
- Sensex and Nifty hit fresh one-year highs with fourth straight session of gains
- Reliance Industries surged 3.5% on strong Q2 earnings, PSU banks jumped 2.9%
- Analysts cite festive optimism, improved FII inflows, and positive global cues
Indian stock markets extended their festive rally on Diwali Monday, with benchmark indices closing higher for the fourth consecutive session. The BSE Sensex rose 0.5% to 84,363.37, while the NSE Nifty50 gained 0.49% to 25,851—both reaching fresh one-year highs.
Over the past four sessions, the indices have climbed 2.8%, bringing them within 2% of their all-time highs from September 2024. Trading remained strong despite the shortened Diwali week, with markets closing on Tuesday and Wednesday for festivities.
Reliance Leads Market Charge
Reliance Industries was the standout performer, jumping 3.5% to a three-month high. The surge followed the company’s report of a 10% year-on-year increase in consolidated profit for the September quarter. Analysts remain positive about the conglomerate’s outlook, citing growth across its oil-to-chemicals, retail, and telecom businesses.
PSU Banks Shine with Strong Results
Public sector banks emerged as major gainers, with the Nifty PSU Bank index surging 2.9%—its sharpest single-day rise in four months. The rally followed robust quarterly results from several state-owned lenders. Punjab National Bank climbed 3.9%, while State Bank of India added 2.1%.
In the private banking space, HDFC Bank briefly hit a lifetime high before closing flat, supported by stable earnings. ICICI Bank, however, slipped 3.2% despite beating profit estimates. RBL Bank soared 9.1% after Emirates NBD invested Rs 3 billion in the private lender.
Analysts Bullish on Market Outlook
Vinod Nair, Head of Research at Geojit Financial Services, said the rally was driven by strong Q2 results and festive optimism. “Positive global cues further bolstered sentiment, with easing trade tensions between the US and China and strength in European defense stocks,” he noted. “Improved FII inflows have turned the domestic market into a net buyer in October after three months of selling.”
Ponmudi R, CEO of Enrich Money, confirmed the technical strength, stating that Nifty continues to trade comfortably above all key moving averages. “Nifty’s breakout above 25,660 has been sustained for a second session, turning that zone into strong support,” he said. “As long as the index holds above 25,750, bullish momentum should continue.”
With festive cheer, robust earnings, and improving macroeconomic signals, Diwali week has begun positively for Indian markets. Investors are optimistic the momentum will continue through Samvat 2082.
