Indian stock markets witnessed a strong rally on Monday, with both the Sensex and Nifty indices posting significant gains. The S&P BSE Sensex jumped by 566.96 points, or 0.67%, to close at 84,778.84. The NSE Nifty 50 index added 170.90 points, or 0.66%, to end the session at 25,966.05.

Market Drivers

Several factors contributed to the positive market sentiment. Upbeat quarterly earnings from key Nifty 50 companies boosted investor confidence. Easing U.S.-China trade tensions and growing optimism about a potential trade deal between India and the U.S. further fueled the rally. Softer-than-expected U.S. inflation data also raised hopes for additional Federal Reserve rate cuts in 2025, adding to the positive momentum.

Global cues were also supportive, with major Asian indices trading higher following an overnight rebound in U.S. markets. This positive global backdrop further encouraged domestic investors.

Sectoral Performance

The rally was broad-based, with several sectoral indices contributing to the gains. The Nifty PSU Bank index was a major outperformer, rising 2.22%. Other sectors that showed significant gains included oil & gas and realty. Conversely, media and pharma shares experienced declines.

Top Performers

Among the individual stocks, State Bank of India (SBI) and Bharti Airtel were among the top contributors to the market's rise.

• SBI: State Bank of India (SBI) shares hit their highest level in calendar year 2025 on the BSE, rising 1% to ₹863.50 in intraday trade. The stock is currently trading close to its all-time high of ₹912.10, which it touched on June 6, 2024. On October 27, 2025, SBI shares were trading 2.08% higher at ₹923.25. Various analysts have given 'Buy' ratings for SBI stock, with target prices ranging from ₹975 to ₹1,025.
• Bharti Airtel: Bharti Airtel's stock price is also on the rise, reaching ₹2,081.05, a 2.56% increase. The stock recently hit a new 52-week high of ₹2,093.85 and has been gaining for the last two days. On October 27, 2025, Bharti Airtel was trading at ₹2,084.95, up by 0.19%.

Market Breadth and Volatility

The overall market breadth was positive, with 2,183 shares rising and 2,109 shares falling on the BSE. However, the NSE's India VIX, a gauge of market volatility, increased by 2.30% to 11.86.

Expert Opinions

Market analysts believe that the current rally indicates renewed participation from retail investors as overall market confidence improves. They also point to sustained foreign institutional investor (FII) inflows as a factor adding to market liquidity and bolstering investor confidence.

Outlook

The Nifty is currently trading near its all-time high of 26,277, registered on September 27, 2024. Technical charts suggest that the near-term trend is likely to remain positive as long as the index holds above 25,700 levels. On the upside, the Nifty could potentially reach 28,300 levels.