Mumbai, October 20, 2025 – Indian stock markets sparkled on the auspicious occasion of Diwali, with both the Sensex and Nifty indices witnessing a robust opening. The BSE Sensex jumped nearly 700 points in early trade, while the NSE Nifty 50 swiftly moved above the 25,900 mark.
At 9:16 AM, the Nifty50 was trading at 25,903.40, up by 194 points or 0.75%. Simultaneously, the BSE Sensex stood at 84,591.13, reflecting a surge of 639 points or 0.76%. At the closing bell, the Sensex climbed 862.23 points, or 1.04 per cent.
The positive market sentiment was fueled by strong quarterly results from major financial institutions like HDFC Bank and ICICI Bank, coupled with renewed optimism regarding easing trade tensions between the United States and China. Reliance Industries and banking stocks also contributed to the rally.
Market analysts suggest that the current corporate earnings and policy decisions from global central banks will likely steer the direction of Indian stocks in the near term. Talks surrounding a potential India-US trade deal are also expected to influence market sentiment.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted that the market momentum, driven by sustained buying from Domestic Institutional Investors (DIIs), marginal Foreign Institutional Investor (FII) activity, and positive reports of brisk festival season sales in the automobile and white goods sectors, is expected to continue. He highlighted that early Q2 results indicate a sharp recovery in earnings, with HDFC Bank and RIL showcasing particularly impressive performance.
Bajaj Broking observed that the Indian benchmark indices concluded the previous session on a strong note, supported by short covering from FII participants and a steady influx of funds. The sentiment remained positive as Bank Nifty achieved a new milestone, driven by robust buying interest in leading banking stocks.
From a technical perspective, Bajaj Broking's Nifty outlook suggests that any dips during the week should be viewed as buying opportunities, anticipating the index to move towards 25,900 and then 26,200 levels in the coming weeks. Immediate support for Bank Nifty is projected in the 57,000-56,700 range.
The broader market also reflected the positive sentiment, with sectoral indices showing strong gains. Nifty Auto, FMCG, Private Bank, and Realty sectors led the rally.
The festive Diwali week began with optimism, with all eyes on key earnings, global cues, FII activity, and the ongoing rally in banking and FMCG stocks, as markets gear up for potentially historic levels.
