Sensex Jumps 700 Points, Nifty Above 25,900 as RIL, HDFC Bank Lead Diwali Rally

Markets Light Up on Diwali as Strong Earnings Spark Rally

Indian stock markets lit up on Diwali Monday as benchmark indices Sensex and Nifty soared sharply, led by strong buying across heavyweight stocks.
The festive trading session, which marks an auspicious start to the Hindu New Year, saw a burst of optimism fueled by robust Q2 earnings from corporate giants such as Reliance Industries (RIL) and HDFC Bank, coupled with positive global cues, foreign fund inflows, and cooling crude oil prices.

The Sensex climbed 704 points, or 0.83%, to hit an intraday high of 84,656.56, while the Nifty 50 gained 216 points, or 0.84%, to cross 25,926.20—a fresh milestone that underscored the market’s strong festive momentum.

Reliance Industries, HDFC Bank Among Top Gainers

Among the key movers, Reliance Industries emerged as a major contributor to the rally, rising over 3% after posting a 14.3% year-on-year growth in consolidated net profit to ₹22,092 crore for the September quarter.
The company’s gross revenue rose 10% YoY to ₹2.84 lakh crore, driven by robust performance in both Jio Platforms and Reliance Retail businesses. The strong quarterly results reaffirmed RIL’s dominance across the telecom, energy, and retail segments, giving investors further confidence.

HDFC Bank also added to the market’s gains, advancing 1.54% after reporting a 10% increase in consolidated net profit to ₹19,610.67 crore in Q2 FY26. Analysts noted that the bank’s steady loan growth and healthy net interest margins (NIMs) contributed to the strong performance.

Other gainers included Bajaj Finserv, Jio Financial Services, Infosys, and Tech Mahindra, which rose up to 3%, helping sustain the market’s upward momentum.

Also Read : Asian Shares Rise as US-China Trade Tensions Cool; Japan, South Korea Lead Gains

Positive Global Cues Add to Market Optimism

Beyond domestic factors, global sentiment turned supportive, with major Asian indices extending gains amid signs of easing US-China trade tensions.
Japan’s Nikkei 225, South Korea’s Kospi, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng were all trading in the green, buoyed by optimism that both Washington and Beijing might soften their recent tariff rhetoric.

Meanwhile, US markets had closed higher on Friday, providing a firm handoff to Asian equities. The Dow Jones Industrial Average and S&P 500 both ended the previous week with solid gains, as investors shrugged off inflation concerns and focused on resilient corporate earnings.

Foreign Inflows Add Fuel to the Rally

The rally was further bolstered by sustained foreign investor activity.
According to exchange data, Foreign Institutional Investors (FIIs) were net buyers of Indian equities worth ₹308.98 crore on Friday, while Domestic Institutional Investors (DIIs) also remained net buyers, purchasing shares worth ₹1,526.61 crore.

Market analysts say that consistent foreign fund inflows have reinforced investor confidence, especially as global interest rate expectations begin to stabilize and India’s macroeconomic fundamentals remain strong.

Falling Crude Oil Prices Ease Inflation Concerns

Adding to the festive mood, crude oil prices continued their downward trend, offering relief to both policymakers and investors.
Brent crude, the global oil benchmark, declined 0.36% to USD 61.07 per barrel, marking its third straight week of weakness.

Lower oil prices are viewed positively for India’s economy, as they help reduce import bills, ease inflationary pressures, and support corporate profitability. Analysts said that softer energy prices will likely translate into better fiscal balance and improved sentiment in sectors like automobiles, aviation, and manufacturing.

Rupee Gains to One-Month High

In the currency market, the Indian rupee strengthened by 14 paise, touching a one-month high of 87.88 per US dollar in early trade.
The appreciation was supported by robust foreign inflows, weaker crude prices, and firm domestic equities.
Currency traders said the rupee’s momentum reflects underlying economic resilience and improving investor sentiment heading into the festive quarter.

Analysts See More Upside, With Key Levels in Focus

Market experts believe that the bullish sentiment could extend further, provided global cues remain supportive and profit-taking remains limited.

“Friday’s firm close set the stage for further gains on Monday,” said Anand James, Chief Market Strategist at Geojit Financial Services. “Eyes are on the 25,875–25,900 levels, with a fair possibility for an extension if Nifty manages to sustain above 26,018. Failing to hold those levels could trigger volatility, with immediate support seen around 25,630,” he added.

Technical analysts note that the next key resistance for Nifty is around 26,100, while support lies at 25,600. The overall sentiment remains positive as investors anticipate a strong second half of FY26, supported by corporate earnings growth, steady macro indicators, and favorable liquidity conditions.

Festive Momentum and Global Tailwinds Support Market

With the Diwali season coinciding with upbeat corporate results and improving global sentiment, analysts expect Indian equities to continue their positive trajectory in the near term.
Market watchers are particularly optimistic about banking, energy, and technology sectors, which have shown resilience amid global volatility.

As investors ring in the new year with renewed optimism, the Sensex and Nifty’s festive rally underscores confidence in India’s growth story — powered by strong fundamentals, rising retail participation, and a healthy economic outlook.

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