Sensex, Nifty end at near 4-month high driven by banks, realty and FMCG stocks

The stock market rallied strongly on Thursday, with benchmark indices closing at nearly four-month highs, led by broad-based gains across sectors. A surge in banking, real estate and FMCG stocks helped power the advance, as investors looked ahead to key corporate earnings and festive demand tailwinds.

The blue-chip NSE Nifty 50 index rose 262 points, or 1.04%, to close at 25,585, after briefly crossing the 25,600 mark in intraday trade - a level last seen nearly four months ago. The S&P BSE Sensex surged 862 points to settle at 83,468, tracking upbeat sentiment in global and domestic markets.

Banking stocks saw significant buying interest, with the Nifty Bank index gaining 623 points to end at 57,423, inching close to its all-time high of 57,628. Heavyweights including Kotak Mahindra Bank, Axis Bank, HDFC Bank and ICICI Bank were the top contributors to the rally in financials.

Axis Bank advanced after posting a healthy Q4 performance, while RBL Bank gained 2% following an announcement that its board would meet on October 18 to consider a fund-raising proposal.

Across the broader market, the Nifty Midcap 100 rose 271 points to 59,241, but underperformed large caps. Market breadth remained positive, with the advance-decline ratio at 3:2, reflecting strong participation from investors across sectors.

All major sectoral indices closed with gains. The Nifty Realty and FMCG indices led the charge, both climbing 2%, buoyed by festive demand sentiment and improving consumer appetite. Oberoi Realty was among the top performers in the realty space, rising on sustained institutional buying.

Gold-linked stocks moved higher amid signs of rising demand ahead of Diwali, with Titan up 3%, reflecting stronger jewellery consumption trends in the lead-up to Dhanteras.

On the earnings front, Nestle India surged 4%, becoming the top Nifty gainer after reporting a robust Q2 performance that beat street estimates on revenue and margin metrics.

On the downside, Eternal ended as the Nifty’s worst performer, falling 3% on the back of mixed management commentary and muted guidance.

HDFC Life Insurance posted a mixed set of second-quarter results, triggering weakness across the insurance space. Max Financial Services dropped 4% as the sector came under pressure amid investor concerns around premium growth and persistency ratios.

KEI Industries slipped 6% after the company announced a delay in commissioning its Sanand plant, raising near-term operational and revenue outlook concerns.

Among index heavyweights, Reliance Industries gained nearly 2%, making it the top contributor to the Nifty index ahead of its quarterly earnings report scheduled for Thursday.