Ahead of Diwali 2025, Sensex and Nifty witness strong rally; here's why

Days before Diwali, India's stock markets witnessed a sharp increase in their indices. Buoyed by positive global cues and renewed optimism surrounding India-US trade talks, Nifty50 at the National Stock Exchange (NSE) was up 261.75 points at 25,585.30, while BSE Sensex stood at 83,467.66, up 862.23 points.

Large-cap stocks like Axis Bank, Kotak Mahindra Bank, ICICI Bank, and Reliance Industries significantly contributed to the rally in the Indian stock markets.

Except for Nifty PSU Bank, all sectoral indices showed positive momentum. Nifty FMCG, Nifty Realty, and Nifty Private Bank emerged as the top gainers. The BSE midcap index rose 0.3 per cent, and the small-cap index added 0.6 per cent.

What experts said on Nifty, BSE rally

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, said that both Nifty Midcap and Nifty Small Cap 10 indices lagged behind the frontline index. However, they closed in positive territory.

The rally was led by selective participation, primarily in large-cap names.

Praveen Dwarakanath, Vice President of Hedged.in, said, "Nifty gapped up and continued its momentum towards its immediate resistance at the 25650 level. The momentum indicators on the weekly chart indicate strong momentum and suggest that prices can continue to rise much higher".

He further said that Nifty will move towards an all-time high of 26,250 before the month ends.

Meanwhile, Nifty's banking benchmark, Bank Nifty, extended its gains throughout the session and continued its northward trajectory.