Indian equities extended their winning streak on Thursday, with the Nifty 50 now less than 100 points away from its 52-week high. The Sensex surged 862 points to 83,467, while the Nifty rose 262 points to 25,585. Over the past two sessions, the Sensex has gained more than 1,500 points, and the Nifty is up 1.7%.
Private banks led the rally. Axis Bank’s Q2 results showed improved asset quality and stronger net interest margins, even though quarterly profit fell short of expectations. HDFC Bank and ICICI Bank, India’s two highest-weighted stocks, rose 1.5% and 1.3% ahead of their earnings later this week.
Foreign inflows also lifted market sentiment. After months of selling, FIIs have returned, injecting over Rs 3,000 crore into Indian equities in just seven sessions. This marks a sharp turnaround from the heavy outflows seen in July, August, and September.
Optimism around India-US trade talks added fuel to the rally. Expectations of easing trade tensions and a possible deal in the coming weeks are boosting investor confidence, especially in labour-intensive export sectors.
The rupee strengthened, touching a one-month high, aided by central bank intervention and optimism over trade discussions. This supported broader market gains, particularly in stocks sensitive to currency movements.
Earnings optimism drove further gains. HDFC Bank, ICICI Bank, and Reliance Industries rose ahead of their results. Nestle India surged 4.5%, Oberoi Realty jumped 5.6%, and Huhtamaki India soared 12% following strong quarterly profits. Small-cap and mid-cap indices also posted modest gains.
Technically, the market looks poised for potential upside. With key support levels holding, analysts suggest the market could test higher levels, though momentum remains cautious. Traders will be watching resistance and support closely for cues on the next leg of the rally.
That’s your market wrap for Thursday. This is Neha Vashishth signing off.
