Global Markets Cheer as Diwali Rally Brightens Sentiment — Nifty, Bank Nifty Extend Gains; Gold and Silver Continue to Shine
Indian markets are set to open on a firm note this Thursday, mirroring buoyant cues from global peers as festive optimism sweeps across Dalal Street. The GIFT Nifty traded 46–47 points higher in early deals, hinting at another day of gains for Indian equities.
Across Asia, the mood remains upbeat — Japan’s Nikkei advanced 332 points, Hong Kong’s Hang Seng gained ground, and Dow Jones Futures were up 43 points, reflecting broad-based strength in global risk appetite.
Sentiment Turns Festive
After days of cautious trade, the domestic market has shifted firmly into bullish territory. The GIFT Nifty hovered near 25,450, while Wednesday’s session saw the Nifty 50 rise 178 points and Bank Nifty climb 33 points. The Sensex added more than 550 points, with notable buying in midcap and smallcap counters — a clear sign that the rally is no longer limited to index heavyweights.
The upbeat sentiment coincides with the Diwali season, traditionally a strong period for equities and consumer spending. “The undertone is positive, and participation is broad-based,” said a senior market analyst. “Investors appear confident that the festive momentum will carry through earnings season.”
Sector Snapshot
Among individual stocks, ICICI Lombard surged 9%, Persistent Systems climbed 7%, while Vodafone Idea and Prestige Estates also featured among top gainers.
Profit-taking, however, was visible in select counters such as Cyient (down 2.4%) and Oracle Financial Services. PB Fintech declined after regulatory tweaks reduced insurance distribution commissions — a move that, while negative for companies, could benefit consumers through lower insurance premiums following a GST cut.
Gold Doubles in a Year
The festive spirit was equally visible in commodities. Gold prices breached the ₹1.66 lakh mark per 100 grams, nearly double last year’s levels near ₹85,000–₹90,000. Silver too continued its upward run amid strong physical demand and global uncertainty.
Currency Gains and Technical Cues
The Indian rupee strengthened across major currencies on Wednesday — including the dollar, euro, pound, and yen — reflecting improved macroeconomic sentiment.
Technically, the market remains on firm footing. A breakout above 25,250 on GIFT Nifty triggered a 100-point rally, as anticipated. Bank Nifty has already surpassed its crucial resistance at 56,800, with analysts eyeing 57,000–57,200 as the next potential target.
Volatility continues to ease, with the India VIX dipping from 11.00 to 10.53, while the Put-Call Ratio rose — both signs of growing bullishness.
Institutional Flows
Foreign and domestic institutions remained net buyers on Wednesday:
- FIIs purchased equities worth ₹69 crore
- DIIs added a strong ₹4,650 crore, underscoring confidence in the ongoing rally.
IPOs and Corporate Earnings
The Canara RBCO AMC IPO debuts today in a quiet listing, while earnings season gathers pace.
L&T Finance Holdings reported a 5.6% rise in profit and 7.9% revenue growth, though the tone remained subdued. KKCL saw profits dip, whereas Adani Green Energy impressed with a 49% jump in operational capacity.
Bharat Electronics Ltd (BEL) secured new defense orders worth ₹592 crore, covering combat management systems and naval equipment, while Hero MotoCorp announced its entry into the Spanish market through a partnership with Noria Motors — a strategic step toward expanding global footprints.
Other notable developments:
- Jyoti Structures bagged ₹289 crore worth of power transmission orders.
- KEC International won fresh contracts worth ₹1,038 crore.
- WisdomTree picked up stakes in MSTC (0.51%) and LCGO (0.7%), valued at ₹20 crore and ₹23 crore respectively.
Mixed Corporate Scorecard
Jubilant Ingrevia’s profit plunged over 50%, deeper than expected, while Delta Corp reported a 7% decline in profit amid sluggish demand.
Regulator SEBI has also booked eight individuals in an IEX insider trading case worth ₹173 crore, as part of its ongoing crackdown on market irregularities.
Key Results to Watch
Investors await crucial quarterly earnings from Infosys, Wipro, Jio Financial Services, L&T Infotech, Indian Bank, Alok Industries, Cyient, Metro Brands, PSB, Rallis India, and Waaree Energies, among others.
Outlook
With institutional buying, easing volatility, and steady global cues, analysts expect the bullish momentum to sustain in the near term — though caution is advised around major results.
Meanwhile, with insurance premiums set to become cheaper after the GST reduction, experts recommend revisiting health and term insurance plans from leading insurers such as ICICI Lombard, HDFC Life, Tata AIG, and Niva Bupa.
As the festive rally gathers steam, traders and investors alike seem to be echoing one sentiment — the Diwali mood is alive on Dalal Street.
