 "Sensex jumps 720 pts, Nifty reclaims 26,000; why markets rallied on Oct 27?")
Benchmark Indian equity indices kickstarted the week on a firm footing and sustained their upward momentum through Monday’s session, supported by favourable global cues, steady foreign fund inflows, and strong buying in index heavyweights. The BSE Sensex climbed 720.20 points, or 0.85 per cent, to hit an intraday high of 84,932.08, while the NSE Nifty50 advanced 210.80 points, or 0.81 per cent, to reclaim the 26,000 mark, touching an intraday high of 26,005.95.
At last count, the Sensex was trading at 84,795.40, up 583.52 points or 0.69 per cent, and the Nifty50 at 25,969.85, higher by 174.70 points or 0.68 per cent, with gains led by Bharti Airtel, Reliance Industries, and HCL Technologies.
The upbeat sentiment extended to the broader market, where the Nifty Midcap100 and Nifty Smallcap100 indices gained 0.92 per cent and 0.65 per cent, respectively. Among key outperformers, Vodafone Idea, Firstsource Solutions, HBL Engineering, and Coforge rallied up to 9 per cent.
On the sectoral front, all indices barring Pharma and Media traded in the green. Nifty Realty, PSU Bank, and Oil & Gas indices advanced over 1 per cent each, while Nifty Metal, IT, and Auto gained up to 0.8 per cent. The Pharma and Media indices slipped 0.15 per cent and 0.49 per cent, respectively.
Here are the key reasons behind today’s rally in Sensex and Nifty
Favourable global cues: Global markets maintained a bullish tone, buoyed by progress in US–China trade talks and strong momentum from Wall Street. Benchmark indices such as the Dow Jones, Nikkei, and Kospi scaled record highs, lifting investor sentiment across emerging markets. “Globally, there are signals of declining trade tensions. Comments from US Treasury Secretary Scott Bessent that there is a ‘substantial framework for trade negotiations with China’ indicate that a deal may be in sight,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Echoing similar views, Prashanth Tapse, senior vice-president (Research) at Mehta Equities, said, “a softer-than-expected US inflation print has strengthened hopes of a Fed rate cut, with markets pricing in a 97 per cent probability of a cut on October 29 and over 90 per cent odds of another in December. Hopes of a US–China trade deal and potential tariff cuts on Indian imports to 15–16 per cent are further aiding sentiment.”
Buying in heavyweights: A sharp rally in index heavyweights lent further strength to the benchmarks. Reliance Industries and Bharti Airtel gained over 2 per cent each, while SBI, HCL Tech, Tata Steel, and HDFC Bank also contributed to the upmove.
Sustained FII inflows: Foreign institutional investors (FIIs) remained net buyers, purchasing equities worth ₹863.73 crore on Friday, October 24, while domestic institutional investors (DIIs) sold stocks worth ₹127.92 crore.
Analysts noted that continued FII participation is adding to market liquidity and bolstering investor confidence.
Improving domestic fundamentals: According to Vijayakumar, “For India, the fundamentals are turning favourable, with brisk festival season sales and a pick-up in private sector capex. This long-awaited trend bodes well for growth and equity markets.”
Technical View
Analysts said the Nifty50 continues to reflect a cautiously optimistic setup amid mixed global signals and the absence of strong domestic triggers. “For Nifty, immediate resistance lies at 26,000, followed by 26,100. A sustained move above these levels will be key for further upside,” said Amruta Shinde, technical & derivative analyst at Choice Equity Broking. She added that fresh long positions should be considered only if the index sustains above 26,200.