Diwali gift for investors! Sensex, Nifty set for sixth straight session of gains; here's why 

Benchmarks indices Sensex and Nifty are likely to open higher on October 23 (Thursday) amid a report that India and the United States may reach an agreement that would cut US tariffs on Indian imports to 15% to 16% from 50%. 

The market has already closed higher for five straight sessions led by GST rate cuts and increased festive spending, which is set to boost corporate India's earnings. 

According to a report in Mint, both sides are negotiating key components involving energy and agriculture. India is likely to agree to gradually cut imports of Russian oil in return for tariff concessions on exports to the US. US had imposed 25% tariff on Indian exports on purchases of Russian crude oil in addition to the 25% reciprocal tariff the US imposed on India. 

Meanwhile, Sensex rose 2396 points in the last five sessions. On similar lines, the 50 stock Nifty  gained 723 points during the period. On Tuesday, Sensex climbed 62.97 points, or 0.07 per cent, to close at 84,426.34, while the Nifty50 rose 25.45 points, or 0.10 per cent, to end at 25,868.60.

Today, on October 22, 2025, stock exchanges BSE and NSE will remain closed on account of Balipratipada, also known as Bali Pratipada or Vikram Samvant New Year Day. This day marks the end of the five-day Diwali celebrations, following Laxmi Puja and other festive rituals.

Rupak De, Senior Technical Analyst at LKP Securities says, "Sentiment continues to favor the bulls, with the index sustaining above the critical 21 EMA. The RSI has entered a highly ambitious momentum zone and looks ready to strengthen in the coming sessions. In the short term, a rally towards 26,000/26,200 looks possible, while support is placed at 25,700." 

While Sensex has gained 7.54% this year, Nifty climbed 9% on a year to date basis. 

Vinit Bolinjkar - Head of Research - Ventura says, "The Nifty index is currently trading at a CY26 forward P/E of 18X, slightly above its average of 17X. This suggests that the potential for further downside is limited, and we expect the Nifty to improve from current levels. Key drivers for this potential upside include a domestic consumption-driven earnings revival from Q3FY26, a possible US–India trade deal, and fiscal and monetary support, including rate cuts and increased government capex. We are targeting 27,600 for the Nifty in the next Samvat. Similarly, we expect the Sensex to reach 90,100 during the same period."