Indian equities extended their festive winning streak on Diwali Monday, as benchmark indices closed higher for the fourth straight session, lifted by strong earnings from Reliance Industries and a rally in banking stocks.
The BSE Sensex rose 0.5% to 84,363.37, while the NSE Nifty50 gained 0.49% to 25,851—both hitting fresh one-year highs. Over the past four sessions, the indices have climbed 2.8%, leaving them less than 2% away from their all-time highs scaled in September 2024.
Trading remained buoyant despite a truncated week, with markets set to close on Tuesday and Wednesday for Diwali festivities. Analysts said better-than-expected corporate earnings and improved global sentiment helped sustain momentum on Dalal Street.
Reliance Industries led the charge, jumping 3.5% to a three-month high after reporting a 10% year-on-year rise in consolidated profit for the September quarter. Analysts remain upbeat about the conglomerate’s outlook, citing growth across its oil-to-chemicals, retail, and telecom businesses.
Public sector banks were the other big gainers, with the Nifty PSU Bank index surging 2.9% — its sharpest single-day rise in four months — following robust quarterly results from several state-owned lenders. Punjab National Bank climbed 3.9%, while State Bank of India added 2.1%.
HDFC Bank briefly hit a lifetime high before closing flat, supported by stable earnings and improving asset quality. ICICI Bank, however, slipped 3.2% despite beating profit estimates, as investors reacted to slower loan and deposit growth. RBL Bank was the standout performer, soaring 9.1% after Emirates NBD invested Rs 3 billion in the private lender.
Vinod Nair, Head of Research at Geojit Financial Services, said the rally was underpinned by strong Q2 results and festive optimism. “Positive global cues further bolstered sentiment, with easing trade tensions between the US and China and strength in European defense stocks,” he said. “Improved FII inflows have turned the domestic market into a net buyer in October after three months of selling.”
He added that PSU banks and mid-sized financial firms were major beneficiaries of improving margins and asset quality. “The oil industry also saw notable gains, helped by easing crude prices and a stronger rupee,” Nair noted.
Ponmudi R, CEO of Enrich Money, said the Nifty continues to trade comfortably above all key moving averages, confirming the uptrend. “Nifty’s breakout above 25,660 has been sustained for a second session, turning that zone into strong support,” he said. “As long as the index holds above 25,750, bullish momentum should continue, with resistance likely around 26,000–26,300.”
He added that Bank Nifty remains structurally strong. “A sustained close above 58,000 could pave the way toward 58,500–59,000,” Ponmudi said, adding that the broader sentiment remains firmly bullish ahead of the Muhurat Trading session on Tuesday.
With the festive cheer, robust earnings, and improving macro signals, Diwali week has begun on a bright note for Indian markets, and investors are hoping the momentum carries through Samvat 2082.
