The rally was fuelled by festive demand ahead of Dhanteras, improved corporate earnings prospects and a sustained decline in crude oil prices, which bolstered overall macro sentiment, analysts said.
The combined market capitalisation of all BSE-listed companies surpassed the level last seen on October 1, 2024, and currently just 2.3 per cent shy of the record high reached on September 27, 2024. Since October began, investors have increased market value by nearly Rs 16 lakh crore.
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The gains were broad-based, with large-, mid-, and small-cap stocks experiencing gains. Both the Sensex and Nifty hit nearly four-month highs, rising 3.6 per cent so far this month.
Analysts noted that investor sentiment improved due to expectations of rate cuts from the US Federal Reserve and the Reserve Bank of India, and advancements in India–US trade talks, especially regarding energy collaboration.
Realty, IT, and banking shares drove the uptrend, with Nifty Realty rising 7 per cent, while Nifty Bank and Nifty IT increased by 5.1 per cent each.
Broad cap indices such as the BSE Midcap index gained 3.66 per cent, while the Smallcap index advanced 2.1 per cent.
Experts indicated that the short-term market remains bullish, though it could move in a consolidated range for some time. The Sensex’s support levels are 25,500-25,400, while the Nifty’s are 83,200-82,900. The Sensex’s resistance levels are 25,725-25,800, and the Nifty’s are 83,800-84,000.
In the past eight sessions, foreign institutional investors (FIIs) have been net buyers in six, investing over Rs 4,000 crore in the secondary market. Meanwhile, domestic institutional investors (DIIs) have invested over Rs 18,000 crore.
