Bulls on the Street: Sensex, Nifty50 clock biggest jump in 4 months

Domestic equities on Thursday advanced, with the two benchmark indices logging their biggest jump in four months, riding on gains by private-sector banks and index heavyweight Reliance Industries. 

The Sensex rose 862 points, or 1.04 per cent, to end at 83,468, while the Nifty climbed 262 points, or 1.03 per cent, to close at 25,585 — both marking their best single-day gain since June. 

Meanwhile, the closing levels were the highest since July.  The benchmark indices are now less than 3 per cent shy of new record highs. The market capitalisation of BSE-listed firms jumped ₹3.2 trillion to ₹467 trillion. So far this month, investors added ₹15.5 trillion in market value. 

Sentiment improved following upbeat quarterly updates from Axis Bank and Nestle India, coupled with minutes from the Reserve Bank of India’s latest policy meeting, which hinted at the scope for further rate cuts. 

Axis Bank gained 2.3 per cent as improved asset quality bolstered confidence, while Nestle India reported double-digit growth in domestic sales. The stock surged 4.8 per cent to ₹1,279 after touching a 52-week high and emerged as the best-performing Nifty constituent.

 

“Expectations of demand revival in Q3FY26, early signs of foreign inflows, dovish commentary from the United States Fed, and a softer dollar lifted sentiment further. The recent appreciation of the rupee has also reinforced the positive undertone. While near-term momentum remains favourable, sustained gains will hinge on earnings growth and global trade developments,” 

said Vinod Nair, head of research, Geojit Investments.   

The day’s rally was led by HDFC Bank, which advanced 1.5 per cent, followed by Reliance Industries (up 1.7 per cent) and ICICI Bank (up 1.3 per cent).

 

These top three weighted index constituents accounted for half the index gains. 

Private banks continued to draw buying interest as foreign portfolio investors (FPIs) turned net buyers in October after three straight months of selling. 

FPIs this month invested ₹4,327 crore, according to the NSDL data. On Thursday, FPIs were net buyers of equities worth ₹997 crore, and domestic institutions too were net buyers of stock worth ₹4,076 crore. 

Market breadth remained positive, with 2,330 stocks advancing on the BSE against 1,871 declining. 

According to investment managers on investment platform Smallcase, domestic equity markets are stepping into the festival quarter on a strong note, supported by rate cuts, reforms in goods and services tax, and improving domestic liquidity. 

Experts said renewed FPI inflows, credit expansion, and healthy earnings momentum were likely to power the next leg of the market rally.