Diwali Cheer on Dalal Street: Sensex Jumps 660 Points, Nifty Nears 25,900

Mumbai — Stock markets lit up on Diwali Monday as investors welcomed the festive week with strong buying momentum. The Sensex surged 661 points (0.8%) to 84,614, while the Nifty climbed 191 points (0.74%) to touch 25,901, reflecting upbeat investor sentiment.

Market experts noted that the bullish tone may continue if the Nifty sustains above the 26,000 mark, but advised close tracking of key technical levels and global market cues in the coming sessions.

The rally was driven by banking and heavyweight stocks, with Kotak Mahindra Bank, Axis Bank, HDFC Bank, and Bajaj twins among the top gainers, rising up to 3%.

Meanwhile, ICICI Bank slipped 2.2% as investors booked profits following its Q2 earnings, while Ultratech Cement and Mahindra & Mahindra also traded slightly lower.

In the broader market, the Nifty MidCap index gained 0.66%, and the Nifty SmallCap index rose 0.19%. The Bank Nifty hit a fresh record high, advancing 0.7% during the session.

All major sectoral indices were in the green, led by Nifty IT, Private Bank, and Pharma, each up around 0.7%.

Foreign Institutional Investors (FIIs) remained net buyers for the second straight day, purchasing shares worth ?309 crore on October 17, while Domestic Institutional Investors (DIIs) provided solid support with ?1,526 crore in net buys.

The festive enthusiasm on Dalal Street mirrored the Diwali spirit, as optimism and liquidity pushed markets higher.

Analysts, however, cautioned traders to stay prudent amid ongoing volatility and mixed signals. They suggested a “buy-on-dips” strategy, with an emphasis on booking partial profits during rallies and maintaining tight stop-losses to manage risk effectively.

With inputs from IANS