The rally was broad-based, led by gains in banking, IT, and select auto and energy stocks. Heavyweights such as Infosys, HDFC Bank, ICICI Bank, and Reliance Industries supported the indices, while consumer durables and PSU banks showed mild profit-taking. The Nifty Bank index climbed over 1%, while the Nifty IT index also gained sharply following positive guidance from major software exporters.
According to analysts, quoted in various reports, the buoyant mood in the market is largely supported by the post-festival economic outlook and optimism surrounding a potential trade agreement between India and the US. Reports suggest Washington may significantly cut tariffs on Indian exports in exchange for India gradually reducing its reliance on Russian crude, which investors see as a major boost to exports and overall trade balance.
The Indian rupee opened stronger at around 87.80 per US dollar, reflecting improved sentiment and capital inflows. The broader market also traded in the green, although mid- and small-cap segments showed mixed trends amid valuation concerns.
While the near-term outlook remains positive, analysts caution that high valuations and potential global uncertainties—such as US inflation trends and monetary policy shifts—could trigger short-term volatility. Still, the underlying market tone remains constructive, with the Nifty expected to test higher levels if it sustains above the 26,000–26,100 range.
Overall, Thursday’s session signals a continuation of the festive rally, with strong domestic cues and improving foreign investor participation setting the stage for potential new record highs in the days ahead.