Stock market benchmarks Sensex and Nifty stayed firm for the third consecutive day and ended with sharp gains on Wednesday, buoyed by massive buying in IT and consumer durables shares amid a rally in global equities markets.
Traders said optimism over the anticipated resolution of the US government shutdown and growing expectations of interest rate cuts by the Federal Reserve also bolstered the sentiment.
The 30-share BSE Sensex rallied 595.19 points, or 0.71 per cent, to settle at 84,466.51. It gained up to 780.69 points or 0.93 per cent to hit an intraday high of 84,652.01.
31 October 2025
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The broader NSE Nifty climbed 180.85 points, or 0.70%, to close at 25,875.80. During the session, it jumped 239.6 points or 0.93% to hit a high of 25,934.55.
"The Nifty extended its winning streak for the third consecutive session, rising 180 points to close at 25,875, supported by optimism over a potential trade deal with the United States. The index opened with a robust 140-point gap and sustained its upward momentum throughout the day.
"Additionally, exit polls indicating that the National Democratic Alliance (NDA) is poised to retain power in Bihar further lifted investor sentiment," Nandish Shah - Deputy Vice President, HDFC Securities, said.
From the Sensex pack, Asian Paints, Tech Mahindra, Tata Consultancy Services, Bajaj Finserv, Adani Ports, HCL Technologies, Bharti Airtel, Infosys, Trent, Reliance Industries, UltraTech Cement, Sun Pharmaceuticals, Eternal, Titan and Bajaj Finance were the gainers.
On the other hand, Tata Steel, Tata Motors Passenger Vehicles, Tata Motors Commercial Vehicles, Bharat Electronics, Kotak Mahindra Bank and PowerGrid were the laggards.
"Global equities rallied on renewed risk appetite, driven by optimism over the anticipated resolution of the US government shutdown and growing expectations of early Fed cuts amid signs of a cooling US labour market," Vinod Nair, Head of Research, Geojit Investments Ltd, said.
Nair noted that emerging markets outperformed, reflecting the improvement in global sentiment.
"Indian indices mirrored this strength, with large-cap stocks leading gains, particularly in the auto, IT, and pharma sectors. Supportive domestic macro fundamentals -- including easing CPI and WPI inflation, a strong GDP outlook, and healthy H2 earnings expectations -- continue to underpin positive market momentum," he said.
The BSE largecap soared 0.63%. Midcap gauge went up by 0.44% while smallcap closed 0.76% higher.
Ajit Mishra - SVP, Research, Religare Broking, said: "The rally was fuelled by optimism over improving trade dialogue prospects between India and the US, coupled with encouraging Q2 earnings from key corporates that further lifted investor sentiment".
Among sectoral indices, Focused IT climbed by 1.97%, IT by 1.95%, Services by 1.13%, Teck 1.77%, Consumer Durables by 1.86%, Auto by 1.15%, Telecommunication by 1.23%, Consumer Discretionary by 1.09%, Energy by 0.85%, and Healthcare by 0.76%.
On the other hand, Realty and Utilities closed lower while Metal ended on a flat note.
A total of 2,509 stocks advanced while 1,701 declined and 163 remained unchanged on the BSE.
In Asian markets, South Korea's Kospi, Hong Kong's Hang Seng, Japan's Nikkei 225 benchmark ended higher while Shanghai's SSE Composite Index closed in the negative zone.
Markets in Europe were trading largely higher. The US markets closed higher on Tuesday.
Brent crude, the global oil benchmark, declined 0.84% to USD 64.61 per barrel.
Foreign Institutional Investors (FII) offloaded equities worth ₹803.22 crore on Tuesday while Domestic Institutional Investors bought stocks worth ₹2,188.47 crore, according to the exchange data.
On Tuesday, the 30-share BSE Sensex jumped 335.97 points to settle at 83,871.32, while the NSE Nifty climbed 120.60 points to close at 25,694.95.
Meanwhile, the latest government data released on Wednesday showed retail inflation in the country slipped to a multi-year low of 0.25% in October, driven by the impact of the GST rate cut and subdued prices of vegetables and fruits.
The consumer price index (CPI) based retail inflation was 1.44% in September and 6.21% in October 2024.
According to the data released by the National Statistics Office (NSO), the food inflation declined to (-) 5.02% in October.
The decline in headline inflation and food inflation during October 2025 was mainly attributed to the whole month's impact of GST rate cut, favourable base effect, and a drop in inflation of oils and fats, vegetables, fruits, egg, footwear, cereals and products, transport and communication, the NSO said
