Sensex rises 483 points, Nifty ends at day’s high: Key factors behind market rally

The equity benchmark indices BSE Sensex and NSE Nifty ended higher on Monday (October 26), with the Sensex rising 483 points to 73,607 and the Nifty gaining 153 points to 22,753.

Both indices closed at the day’s high, while the Nifty Bank turned positive after the cash market closing session (CAS). The Nifty Bank advanced 79.33 points to 54,367, while the Nifty Midcap index rose 665 points to 56,465.

What Drove The Market?

IT stocks rebound:

IT stocks recovered during the session, with Coforge gaining nearly 5%. Infosys ended over 1% higher despite missing estimates for its second-quarter results.

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Dr Reddy’s leads gainers:

Dr Reddy’s Laboratories surged nearly 7% after reporting strong Q2 results and receiving a positive brokerage note. Aether Energy jumped 14% after strong quarterly results and turned earnings before interest, taxes, depreciation and amortisation (EBITDA) positive.

Capital market stocks advance:

Capital market stocks ended higher, with BSE gaining 4% after a positive brokerage note. Other stock-specific moves: Graphite India rose nearly 7% following competitor GrafTech’s Q3 earnings call, while ITC Hotels gained over 5% on margin and revenue expansion.

Indian Overseas Bank (IOB) advanced nearly 6%.

Guidance cuts weigh on stocks:

Shriram Finance fell nearly 5% after cutting its assets under management (AUM) guidance, making it the top Nifty loser. Supreme Industries declined over 4% after a guidance cut.

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AU Small Finance Bank and Dhanlaxmi Bank also saw sharp declines following their Q2 results. Ahead of their Q2 results, Sona BLW gained nearly 4%, while Tata Consumer Products fell over 3%.

From the Sensex basket, JSW Steel Ltd, Hindalco Industries Ltd, Max Healthcare Institute Ltd, Kotak Mahindra Bank Ltd, Trent Ltd and Hindustan Aeronautics Ltd were the major gainers. Shriram Finance Ltd, Bajaj Finance Ltd, Nestle India Ltd, HCL Technologies Ltd and Power Grid Corporation of India Ltd were the biggest laggards.

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