Sensex rises 860 points, Nifty above 26,000: Why are markets rising today?

Indian benchmark indices Sensex and Nifty advanced for a sixth straight session on Thursday, October 23, 2025. In the intra-day trade, Sensex jumped 864 points or 1.02 per cent to the day’s high at 85,272.4, and Nifty50 surpassed the 26,000-level, advancing 236 points or 0.9 per cent to day’s high at 26,104.20.   However, Sensex closed 130.06 points or 0.15 per cent higher at 84,556.4 and Nifty settled at 25,891.4, up 22.8 points or 0.09 per cent.

 

At close, on BSE, Infosys, HCLTech, Axis Bank and TCS were among the top gainers, while UltraTech Cement, Eternal  (Zomato) , ICICI Bank and Bharti Airtel were the top laggards. 

 

Broader market indices closed lower with Nifty MidCap 100 down 0.06 per cent, and Nifty SmallCap 0.05 per cent. On the sectoral front, Nifty IT was the top gainer up 2.21 per cent.

Why were markets rallying today? Key reasons: 

India-US trade deal hopes 

The US could substantially slash tariffs on Indian exports as the two countries near a trade deal that could see New Delhi cutting oil purchases from Russia, according to reports. As part of the trade deal, Washington could slash tariffs on Indian exports to 15 per cent to 16 per cent from the current 50 per cent, reports cited. 

 

“Reports of an imminent trade deal between India and the US are doing the rounds in market circles, and the market reaction through Nifty implied open confirms this,” said VK Vijayakumar, chief investment strategist, Geojit Investments. 

 

He added: The market rally, which has already begun in the festival season, will accelerate, enabling the Nifty to set new record highs. Unprecedented record sales during the last few days have the potential to improve corporate earnings. 

FIIs turn buyers

Foreign investors have bought Indian equities worth ₹2,262.08 crore in the past five sessions. In October, foreign portfolio investors (FPIs) purchased ₹7,362 crore worth of Indian equities, according to NSDL data. 

 

“FIIs turning buyers recently and short covering are factors that can fuel the rally. Clearly, it is an advantage bulls,” said Vijayakumar.  

IT stocks surge

Nifty IT index rallied nearly 3 per cent with Infosys rising over 4 per cent, HCLTech over 3 per cent, Mphasis, TCS, Tech Mahindra, Persistent Systems, and Wipro over 2 per cent. In a major relief for H-1B holders and international students on F-1 visas, the United States Citizenship and Immigration Services (USCIS) recently confirmed that recent graduates in the US transitioning to H-1B status will not be subject to the $1,00,000 fee announced by the Trump administration last month.

 

Starting in September, the Trump administration imposed a $1,00,000 fee on H-1B visas. READ MORE 

 

Individually, Infosys' stock spiked following news that the company’s promoters, including Narayana Murthy and chairman Nandan Nilekani, have decided not to participate in the share buyback announced in September.

 

The Infosys board had approved a buyback of 100 million fully paid-up equity shares with a face value of ₹5 each, at a price of ₹1,800 per share, amounting to ₹18,000 crore. This buyback represents up to 2.41 per cent of the total paid-up equity capital on a standalone basis. The buyback will be executed from equity shareholders on a record date yet to be announced, according to the company’s exchange filing. READ MORE

 

Separately, HCLTech shares climbed after it partnered with UAE-based DIB to accelerate AI adoption across its ecosystem. READ MORE

Technical view: 

“Nifty opened strong above 25,900, and the trend remains firm with a likely retest of the previous peak near 26,300 in the coming days. Key support lies at the trendline around 25,400; holding this keeps the bullish bias intact,” said Vaishali Parekh, vice president – technical research, PL Capital. 

 

She added: Sensex is sustaining above the crucial 161.8 per cent retracement near 83,750—now strong near-term support—and a close above 84,000 has further improved sentiment. A breakout above the prior high at 86,000 would bolster stability and open upside towards 89,500–93,800. For today, support is at 25,700 and resistance is at 26,000.