The S&P BSE Sensex advanced over 700 points to an intraday high of 84,932, while the NSE Nifty 50 rose over 200 points to a day’s high of 26,005. The Nifty is now just 1% away from its all-time high, while the Sensex sits 1.2% below its record peak.
By the close, the Sensex settled 567 points higher at 84,778, and the Nifty ended 171 points up at 25,966.
Here are the five key factors that powered Monday’s rally:
1. Hopes of Fed rate cuts
Softer US inflation data reinforced expectations of rate cuts by the Federal Reserve in 2025 — a positive for emerging markets like India.
2. US-China trade progress
Optimism around a possible US-China trade deal lifted global sentiment, with officials reportedly finalizing a framework for review by both nations’ leaders later this week.
3. Rupee strength
The rupee outperformed most Asian peers this month, buoyed by RBI’s interventions and steady foreign inflows worth about $2.7 billion so far in October.
4. Festive momentum and earnings boost
Strong Q2 earnings from banks and upbeat festival demand have supported the rally, with HDFC Bank, ICICI Bank, and SBI leading the charge.
5. Technicals point to more upside
Chart patterns suggest further gains ahead — analysts see the Nifty eyeing the 26,186 mark in the near term if momentum sustains.
That’s all for today’s market wrap. Stay tuned for more updates, only on ET Market Watch.