Festive trading session sees broad-based buying led by Reliance, Bajaj Finserv, and Axis Bank; Asian markets also close higher.
Mumbai | Economy India Bureau
Indian stock markets sparkled on the occasion of Diwali (October 20, 2025), as benchmark indices closed higher for the second consecutive session. The BSE Sensex gained 411 points (0.49%) to end at 84,363.37, while the NSE Nifty 50 rose 133 points (0.52%) to close at 25,843.
The festive cheer was visible across most sectors, with strong buying in PSU banks, oil & gas, IT, and pharma counters.
Market Snapshot — October 20, 2025
| Index | Closing Value | Change (Points) | Change (%) |
|---|---|---|---|
| Sensex | 84,363 | +411 | +0.49% |
| Nifty 50 | 25,843 | +133 | +0.52% |
| BSE Midcap | 46,680 | +319 | +0.69% |
| BSE Smallcap | 53,356 | +315 | +0.59% |
Reliance, Bajaj Finserv Lead Market Gains
Out of the 30 Sensex stocks, 19 advanced while 11 declined.
- Reliance Industries led the rally, gaining 3.6% amid optimism around its retail and energy businesses.
- Bajaj Finserv climbed 2.8%, supported by strong insurance and lending growth prospects.
- Axis Bank added nearly 2%, extending last week’s momentum.
Among the top gainers on the Nifty index were Cipla (+4.15%), Reliance (+3.61%), and Bajaj Finserv (+2.79%).
On the downside, ICICI Bank (-3.03%), Mahindra & Mahindra (-1.38%), and JSW Steel (-1.32%) were the top laggards, as investors booked profits in heavyweights.
Sector-Wise Performance
- PSU Bank Index jumped nearly 3%, extending its strong recent rally.
- Oil & Gas rose 1.5%, supported by higher crude oil prices and improving refining margins.
- IT, Media, Pharma, and Private Bank indices gained around 1% each.
- Auto, FMCG, and Metal sectors saw mild declines amid selective profit-booking.
Market analysts said festive optimism, positive global cues, and strong institutional inflows contributed to the upbeat sentiment.
Asian Markets End Higher
Global cues remained supportive, with most Asian markets closing in the green:
- Japan’s Nikkei jumped 1,603 points (3.37%) to 49,185.50, its highest close in several months.
- South Korea’s KOSPI gained 65.80 points (1.76%) to 3,814.69.
- Hong Kong’s Hang Seng surged 611 points (2.42%) to 25,858.83.
- China’s Shanghai Composite advanced 24.14 points (0.63%) to 3,863.89.
Earlier, on October 17, the U.S. Dow Jones closed 238 points higher at 43,968, while the Nasdaq Composite gained 117 points to 22,679 and the S&P 500 ended flat at 6,664.
FPIs and DIIs Remain Net Buyers
Foreign and domestic institutional investors maintained a bullish stance heading into Diwali.
According to NSE data, on October 17,
- Foreign Portfolio Investors (FPIs) bought shares worth ₹1,526.61 crore, and
- Domestic Institutional Investors (DIIs) were net buyers of ₹308.98 crore.
During the trading session, DIIs purchased shares worth ₹16,860 crore and sold ₹15,333 crore, while FPIs bought ₹14,505 crore and sold ₹14,196 crore worth of equities.
This consistent buying from institutions has been instrumental in stabilizing market sentiment and offsetting global volatility.
Second Straight Session of Gains
The Diwali rally extended the previous week’s momentum. On October 17, the Sensex had risen 484 points to 83,952, while the Nifty gained 124 points to 25,709.
Traders noted that festive optimism, coupled with foreign inflows and easing concerns over U.S. rate hikes, has reignited buying interest in large-cap and PSU counters.
Market Outlook: Positive Momentum Expected to Continue
Analysts expect the festive rally to continue in the short term, backed by:
- Strong Q2 corporate earnings,
- Foreign investor inflows, and
- Resilient domestic macro indicators such as GDP growth and low inflation.
However, some caution persists due to global crude price volatility, U.S. bond yield movement, and election-related uncertainty.
“Diwali marks a symbolic beginning for the Indian markets, and this year’s strong close reflects investor confidence in India’s economic growth story,” said a market strategist at Motilal Oswal Financial Services.
(Economy India)
