Sensex surges 734 pts to reclaim 85K, Nifty crosses 26,000; what fuelled rally in stock market

Indian equity benchmarks continued their upward momentum for the fifth straight session on Thursday, with the Sensex surging over 700 points to reclaim the 85,000 mark and the Nifty climbing 200 points to cross 26,000 for the first time in the past 12 months. The strong rally was attributed to optimism surrounding the India-U.S. trade deal and robust domestic sentiment after the festive break.

The benchmark indices have rallied over 4% in the last five sessions to hit their 52-week high levels, as investor sentiment was further bolstered by easing U.S. Treasury yields, expectations of early rate cuts by major central banks, and steady foreign fund inflows.

Driven by the sustained rally, investors have become richer by ₹12.83 lakh crore in the past five trading days, as the total market capitalization of BSE-listed companies soared to ₹473.33 lakh crore from ₹460.50 lakh crore at the end of trade on October 14, 2025.

During the session today, the BSE Sensex jumped as much as 734 points, or 0.86%, to hit a fresh 52-week high of 85,182.56. In a similar trend, the NSE Nifty50 surged 217 points, or 0.80%, to touch a new 52-week high of 26,085.70.

The broader market also witnessed buying momentum, with the Nifty SmallCap 100 index rising 0.33% and the Nifty MidCap 100 index adding 0.44% in early trade.

Top gainers and Losers

The market saw positive sentiment, with 1,972 stocks rising, 1,393 falling, and 189 unchanged on the BSE. Among 3,554 stocks traded, the strong advance-to-decline ratio highlighted robust investor confidence, driven by gains in both large-cap and select midcap stocks.

On the BSE Sensex pack, 29 out of 30 stocks advanced, with Infosys leading the rally, surging 3.36%. Among IT heavyweights, HCLTech rose 2.61%, while Tech Mahindra and TCS gained 2.22% and 1.16%, respectively, supported by optimism around a recovery in global IT spending.

Financials also contributed to the upside, with Axis Bank climbing 2.22% and Kotak Mahindra Bank adding 1.63%, lending strength to the benchmark indices. Other notable gainers included Tata Steel , ITC , Titan , and HUL, rising in the range of 1.5% to 1%.

On the downside, only Eternal (Zomato) was in the red, falling 0.44% amid profit booking after recent gains.

What fuelled the rally in the market?

Reports of an imminent trade deal between India and the U.S. have boosted market sentiments, said market analysts.

“The Nifty 50 opened higher and is now testing the crucial 26,000 mark, signaling potential for a breakout to fresh lifetime highs. Despite mixed global cues and subdued activity across Asian markets, investor confidence remains upbeat, supported by sustained domestic and foreign inflows and encouraging Q2 earnings across key sectors,” said Ponmudi R, CEO of Enrich Money.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said that comments from U.S. President Donald Trump and responses from Prime Minister Narendra Modi indicate an early trade deal. The expected deal involves some concessions from both sides.

“If the reported 15–16% tariffs on Indian exports to the U.S. materialize, that would be a big positive for the Indian economy and a major boost to stock markets. The market rally, which has already begun in the festival season, will accelerate, enabling the Nifty to set new record highs,” he said.

“Unprecedented record sales during the last few days have the potential to improve corporate earnings. FIIs turning buyers recently and short covering are factors that can fuel the rally. Clearly, it is an advantage for bulls,” Vijayakumar added.

He said that short-covering has the potential to spike large caps where there are big short positions. Textile stocks, which bore the brunt of the penal tariffs, are likely to witness significant buying.

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