Sensex Gains 450 Points, Nifty Tops 25,450: Banking Rally, FII Inflows Fuel Market Optimism
Indian stock markets opened on a strong note Thursday, with benchmark indices Sensex and Nifty rising over half a percent amid fresh foreign fund inflows, a rally in banking stocks, and positive global market cues.
At around 10:30 a.m., the BSE Sensex surged 458.98 points (0.56%) to 83,064.41, while the NSE Nifty climbed 132.15 points (0.52%) to 25,455.70, extending gains for a third consecutive session.
Among the top Nifty gainers were Titan Company, Adani Ports, Tata Motors, Axis Bank, and Mahindra & Mahindra, all rising up to 3 percent intraday, reflecting broad-based buying across sectors.
Banking Stocks Lead the Market Rally
The banking sector emerged as the key driver of today’s rally, with the Bank Nifty rebounding from the previous session’s losses to gain around 0.5 percent.
Axis Bank shares advanced after reporting healthy loan growth in the September quarter. Brokerage Bernstein maintained its ‘Outperform’ rating on the lender, setting a target price of ₹1,250 per share.
Investor sentiment in the banking space also improved following reports that the government is drafting a mega public sector bank merger plan, under which smaller state-owned banks could be consolidated with larger ones by FY27. The move is expected to strengthen the sector’s balance sheets and improve operational efficiency.
“Govt draws up mega bank merger plan; smaller lenders to be clubbed with big banks by FY27,” a senior official said, adding that the strategy aims to streamline lending and enhance capital adequacy across PSBs.
Also Read : Axis Bank Rises 4% After Q2 Earnings; Analysts Stay Positive Despite Exceptional Items
Fresh FII Inflows Strengthen Market Momentum
The market also found support from foreign institutional investor (FII) buying, a key indicator of global confidence in Indian equities.
According to NSE data, FIIs bought shares worth ₹68.64 crore on Wednesday, while domestic institutional investors (DIIs) added another ₹4,650 crore. The consistent inflows have boosted liquidity and supported the rupee, further lifting overall market sentiment.
Market experts noted that renewed foreign interest follows improving macroeconomic indicators and stabilizing inflation, coupled with hopes of a US Federal Reserve rate cut in the coming months.
Positive Global Cues Support Risk Appetite
Global equities provided a strong backdrop for Indian markets. Most Asian indices — including South Korea’s Kospi, Japan’s Nikkei 225, and China’s Shanghai Composite — traded in the green, mirroring overnight gains on Wall Street.
“Bullish euphoria is set to light up Dalal Street ahead of Diwali, with rate cut hopes from the Fed, upbeat global cues, and the IMF raising India’s FY26 GDP forecast to 6.6 percent,” said Prashanth Tapse, Senior Vice President (Research), Mehta Equities Ltd.
The IMF’s upgrade to India’s growth forecast and easing crude oil prices have further brightened investor outlook for the coming months.
India–US Trade Talks Add to Investor Optimism
Market optimism was also buoyed by expectations surrounding India–US trade discussions, set to begin in Washington on Thursday.
Commerce Secretary Rajesh Agrawal is leading the Indian delegation, with talks likely to focus on energy cooperation and trade facilitation. A favorable outcome could strengthen bilateral trade ties and boost exports, analysts said.
Rupee Gains on Softer Dollar and Strong Flows
The Indian rupee appreciated 40 paise to 87.68 per US dollar in early trade, supported by fresh foreign inflows, a softer dollar index, and lower crude prices.
Forex traders attributed the rupee’s gains to central bank intervention and improved risk appetite in domestic markets.
A stronger rupee typically supports import-heavy sectors and reduces inflationary pressure, offering another layer of support for equities.
Nifty Shows Strength Above 25,330
According to Anand James, Chief Market Strategist at Geojit Financial Services, the Nifty closing near the 25,330 mark indicates resilience in the market.
“A sustained move above this region opens the possibility of testing 25,460 in the near term. However, low momentum remains a concern. Immediate support lies around 25,260,” he said.
Analysts expect range-bound consolidation in the short term, but maintain a positive medium-term outlook, driven by steady earnings growth and festive season demand.
Festive Cheer and Global Tailwinds Could Extend Gains
With foreign inflows returning, banking and auto stocks outperforming, and global optimism rising, market watchers believe the Sensex and Nifty could continue their upward momentum heading into the Diwali week.
If the Federal Reserve signals rate easing and the India–US trade talks yield positive results, analysts expect benchmark indices to test new record highs in the coming sessions.
