Sensex, Nifty extend gains; five key factors driving today's market rally
Strong demand in index heavyweights such as Bharti Airtel, Reliance Industries, Asian Paints, ITC, Mahindra & Mahindra (M&M), Hindustan Unilever Ltd (HUL) and Titan supported overall market momentum.
- Oct 17, 2025,
- Updated Oct 17, 2025 1:10 PM IST
Indian equity benchmarks extended gains in Friday's session after a weak start, supported by buying in heavyweight stocks and steady foreign fund inflows. The 30-share BSE Sensex pack climbed 420 points or 0.50 per cent to 83,887, while the broader NSE Nifty index advanced 111 points or 0.44 per cent to 25,697.
The broader market showed a mixed trend, with the Nifty Midcap100 slipping 0.19 per cent and the Nifty Smallcap100 rising 0.38 per cent.
Here are the five main factors driving today's market rally:
1. Buying in large-cap stocks
Strong demand in index heavyweights such as Bharti Airtel, Reliance Industries, Asian Paints, ITC, Mahindra & Mahindra (M&M), Hindustan Unilever Ltd (HUL) and Titan supported overall market momentum.
2. Banking sector strength
Sub-index Bank Nifty scaled a new record high of 57,830 amid optimism ahead of Q2 earnings from key lenders, including HDFC Bank and ICICI Bank. The index has surged nearly 10,000 points since its March 2025 lows, underscoring sustained strength in the financial sector.
3. Continued foreign and domestic fund inflows
Foreign Institutional Investors (FIIs) remained net buyers for the second consecutive session, purchasing equities worth Rs 997.29 crore on Thursday. Domestic Institutional Investors (DIIs) also bought shares worth Rs 4,076.20 crore, adding to overall market liquidity and sentiment support.
4. Decline in crude oil prices
Global crude prices eased, with Brent crude down 0.84 per cent at $60.55 a barrel and WTI crude lower by 0.85 per cent at $56.97. Falling oil prices help reduce inflationary pressures and India’s import bill, offering relief to both consumers and the economy.
5. Rupee appreciation
The Indian rupee strengthened by 21 paise to 87.75 against the US dollar, aided by a softer greenback and possible RBI intervention. A stronger rupee lowers import costs and often attracts foreign investments.
Nifty outlook
Amruta Shinde, Technical & Derivative Analyst at Choice Broking, advised traders to adopt a cautious "buy-on-dips" strategy amid ongoing volatility. She suggested booking partial profits during rallies, using tight trailing stop-losses, and initiating fresh long positions only if Nifty sustains above 25,750. The near-term outlook remains cautiously bullish with focus on key technical levels and global cues.
Indian equity benchmarks extended gains in Friday's session after a weak start, supported by buying in heavyweight stocks and steady foreign fund inflows. The 30-share BSE Sensex pack climbed 420 points or 0.50 per cent to 83,887, while the broader NSE Nifty index advanced 111 points or 0.44 per cent to 25,697.
The broader market showed a mixed trend, with the Nifty Midcap100 slipping 0.19 per cent and the Nifty Smallcap100 rising 0.38 per cent.
Here are the five main factors driving today's market rally:
1. Buying in large-cap stocks
Strong demand in index heavyweights such as Bharti Airtel, Reliance Industries, Asian Paints, ITC, Mahindra & Mahindra (M&M), Hindustan Unilever Ltd (HUL) and Titan supported overall market momentum.
2. Banking sector strength
Sub-index Bank Nifty scaled a new record high of 57,830 amid optimism ahead of Q2 earnings from key lenders, including HDFC Bank and ICICI Bank. The index has surged nearly 10,000 points since its March 2025 lows, underscoring sustained strength in the financial sector.
3. Continued foreign and domestic fund inflows
Foreign Institutional Investors (FIIs) remained net buyers for the second consecutive session, purchasing equities worth Rs 997.29 crore on Thursday. Domestic Institutional Investors (DIIs) also bought shares worth Rs 4,076.20 crore, adding to overall market liquidity and sentiment support.
4. Decline in crude oil prices
Global crude prices eased, with Brent crude down 0.84 per cent at $60.55 a barrel and WTI crude lower by 0.85 per cent at $56.97. Falling oil prices help reduce inflationary pressures and India’s import bill, offering relief to both consumers and the economy.
5. Rupee appreciation
The Indian rupee strengthened by 21 paise to 87.75 against the US dollar, aided by a softer greenback and possible RBI intervention. A stronger rupee lowers import costs and often attracts foreign investments.
Nifty outlook
Amruta Shinde, Technical & Derivative Analyst at Choice Broking, advised traders to adopt a cautious "buy-on-dips" strategy amid ongoing volatility. She suggested booking partial profits during rallies, using tight trailing stop-losses, and initiating fresh long positions only if Nifty sustains above 25,750. The near-term outlook remains cautiously bullish with focus on key technical levels and global cues.