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The BSE Sensex surges over 862.23 points to close at 83,467.66 and the NSE Nifty jumps by nearly 261.75 points to close above the 25,550 mark at 25,585.30.
Stock Market Today.
Stock Market Today, October 16: In a major stock market rally, domestic equities adopted a festive mood on Thursday, with the benchmark indices trading higher by over 1% as compared with the previous close. The BSE Sensex surged over 862.23 points to close at 83,467.66 and the NSE Nifty jumped by nearly 261.75 points to close above the 25,550 mark at 25,585.30.
Broader markets were also trading up, with the Nifty Midcap 100 and the Nifty Smallcap 100 rising by 0.46% and 0.24%, respectively.
FMCG, realty, banks and consumer durables were among the top gainers in the Indian markets today.
Key Factors Driving the Market Rally
1) Banking stocks lead the charge
Banking shares were the main drivers of Thursday’s rally, with the Bank Nifty rebounding nearly half a per cent after the previous session’s losses. Strong buying was seen in Axis Bank and AU Small Finance Bank, among others.
Axis Bank gained after reporting healthy loan growth for the September quarter, with Bernstein maintaining its ‘outperform’ rating and a target price of ₹1,250 per share.
Adding to the optimism, reports of a potential public sector bank consolidation lifted sentiment across the sector, with sources suggesting that the Centre may merge smaller lenders with larger state-run banks.
2) Upbeat global cues
Asian markets mirrored overnight gains on Wall Street, with South Korea’s Kospi, Japan’s Nikkei 225, and Shanghai’s SSE Composite trading higher.
“Bullish euphoria is set to light up Dalal Street ahead of Diwali, with rate cut hopes from the Fed, upbeat global cues, and the IMF raising India’s FY26 GDP forecast to 6.6%,” said Prashanth Tapse, Senior Vice President (Research) at Mehta Equities Ltd.
3) Optimism over India-US trade talks
Investor confidence also got a lift from expectations around the upcoming India-US trade talks in Washington. Commerce Secretary Rajesh Agrawal is part of the delegation, with discussions likely to focus on energy trade.
V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, said that recent signals from the US suggest easing trade tensions and the possibility of a bilateral trade deal soon. “China’s actions on rare earth magnets have pushed the US to seek stronger trade ties with India, with both sides likely to make concessions,” he noted.
4) Continued FII support
Foreign Institutional Investors (FIIs) were net buyers, picking up equities worth ₹68.64 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹4,650.08 crore. Sustained foreign inflows have improved liquidity, strengthened the rupee, and supported equity valuations.
5) Rupee strengthens
The rupee appreciated by 40 paise to 87.68 per US dollar in early trade, supported by central bank intervention, a weaker dollar index, firm domestic equities, and lower crude prices, according to forex traders.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
October 16, 2025, 14:49 IST
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