Diwali cheer on Dalal Street: Sensex, Nifty hit fresh 52-week highs

Corporate earnings and strong sector gains spark a lively rally as new trading year dawns

Equity markets extended their uptrend on Monday, with benchmark indices hitting fresh 52-week highs both intraday and at close, supported by gains in heavyweight Reliance Industries and encouraging early corporate earnings for the July-September quarter.

 

With both the Sensex and the Nifty less than 2 per cent below their all-time highs, the indices appear poised to scale new peaks early in Samvat 2082, beginning Tuesday.

 

The Sensex ended 411 points, or 0.5 per cent, higher at 84,363, while the Nifty advanced 133 points, or 0.5 per cent, to 25,843. Both indices rose for the fourth consecutive session, gaining 2.8 per cent over the period. At current levels, the Sensex remains 1.7 per cent below its record closing high, and the Nifty 1.4 per cent. The total market capitalisation of BSE-listed firms increased by ₹2.8 trillion to ₹470 trillion.

 

Early corporate earnings for the quarter ended September lifted investor sentiment amid signs of improvement in revenues and profit growth. Part of this recovery reflects a favourable base effect, as corporate performance had declined sharply in the preceding April-June quarter.

 

“The results clearly indicate that the cycle of earnings downgrades we’ve been seeing over the past five to six quarters is nearing its end. While it’s not exactly a robust earnings rebound, expectations had been lowered and are now largely being met, or even exceeded in some cases,” said Pramod Gubbi, cofounder of Marcellus Investment Managers.

 

Reliance Industries was the standout performer on the Sensex, rising 3.5 per cent to notch its sharpest single-day gain since May 12. The stock contributed the most to the index’s advance, driven by stronger performances from its telecommunications, digital services, and oil-to-chemical businesses.

 

Gains, however, were pared by profit-taking in banking heavyweights. HDFC Bank touched a record high of ₹1,020 after reporting an 11 per cent increase in net profit but settled at ₹1,003, up just 0.08 per cent. ICICI Bank declined 3.2 per cent, emerging as the day’s worst-performing Sensex constituent after gains over the previous four sessions.

 

Market direction in the coming days will hinge on the remainder of the corporate earnings season. Equity trading will be limited to a one-hour ceremonial session on Tuesday for Diwali and remain closed on Wednesday.

 

“As the Nifty approaches the 26,000 mark, some consolidation cannot be ruled out before the next breakout. However, the overall bias remains positive, with immediate support near 25,650 and major support around 25,450,” said Ajit Mishra, senior vice-president of research at Religare Broking.

 

Market breadth remained favourable, with 2,447 stocks advancing and 1,835 declining on the BSE.