Indian stock markets continued their winning streak from yesterday, as the Sensex rose 862.23 points to close at 83,467.66 and the Nifty50 rose 261 points to close at 25,585.30. The gains were on a broad basis across sectors, mid and small caps, and strong buying by domestic institutions supported market resilience.
The benchmark indices Sensex's 1.04% and Nifty's 1.03% gains show continuous bullishness in the face of positive global signals and strong domestic liquidity. The Nifty MidCap index rose 0.53% and Nifty SmallCap gained 0.25%, showing breadth extending beyond large-cap dominance. India VIX fell to 10.53, indicating lower near-term volatility.
Titan, Kotak Mahindra Bank, Axis Bank, Mahindra & Mahindra, Adani Ports, and Tata Motors led the charge, each gaining more than 2% due to positive earnings expectations. In contrast, Eternal, Infosys, TCS, and Sun Pharma were the day's losing stocks, each falling 0.5–1.0% due to profit taking and mixed Q2 performances by peers.
All the major sectoral indices settled in the positive zone. Realty and FMCG led the pack with 1.9% each on the back of restored consumer confidence and better sales data pre-Festival season demand. Financials gained close to 1.4% on the back of strong Q2 banking performance, while Automobile and Capital Goods each appreciated about 0.6% on upbeat demand estimates. Information Technology, however, was flat red, down 0.1%, despite mixed global signals for software exports.
Mid-cap shares performed better, displaying investors shifting into quality names outside large caps. The BSE MidCap index gained 1.3% and the BSE SmallCap index gained 0.2%, as some mid-cap finance and industrials drew solid buying on favourable valuations and improved visibility of growth. Analysts observe that mid and small caps are gaining from better earnings momentum and greater domestic fund inflows.
Ponmudi R., Enrich Money CEO, stressed that "a sustained move above 25,400 on the Nifty could trigger a fresh rally toward 25,650, with support seen at 25,220–25,150". On the other hand, research analysts at Motilal Oswal pointed out that declining global bond yields and favourable domestic macroeconomic data such as encouraging industrial production and increasing GST collections—are boosting market sentiments.
Securities companies also attribute good FII buying of ₹2,300 crore and DIIs putting in ₹1,150 crore on the cash market, indicating improving foreign inflows and good domestic fund flows, which should sustain further upside in upcoming sessions.
With Q2 result season on and international leads continuing to be positive, the market is likely to maintain its momentum. Major resistance for Nifty is at 25,650, with immediate support levels at 25,400 and 25,220. Investors are recommended to selectively buy quality mid-cap and value bets in this positive environment, while being cautious for possible profit-taking near record highs.
