The Indian equity markets extended their winning streak for the second consecutive session on Thursday, with benchmark indices scaling new peaks driven by strong buying in heavyweights like Reliance Industries, HDFC Bank, and Bajaj Finance.
The BSE Sensex rallied 446.21 points (0.52%) to settle at 85,632.68, while the broader NSE Nifty50 climbed 139.50 points (0.54%) to close at 26,192.15. During intraday trade, the Nifty hit a fresh 52-week high of 26,246.65.
Key Market Drivers
The bullish sentiment on Dalal Street was fueled by a combination of positive global signals and renewed foreign inflows.
- US-India Trade Optimism: Investor sentiment was buoyed by reports of progress in India-US trade negotiations, with expectations of a “phase-1” agreement potentially easing recent tariff concerns.
- FII Inflows: Foreign Institutional Investors (FIIs) turned net buyers yesterday, purchasing equities worth ₹1,580 crore, signaling a return of confidence in Indian valuations.
- Sectoral Rally: The rally was broad-based but led primarily by Financial Services, Oil & Gas, and Auto sectors. The Nifty Bank index remained resilient, supporting the overall market breadth.
Top Gainers and Losers
Gainers:
- Bajaj Finance and Bajaj Finserv were the top performers, surfing on strong volume.
- Reliance Industries contributed significantly to the index gains, tracking a recovery in crude prices.
- Eicher Motors and Tech Mahindra also saw robust buying interest.
Losers:
- Asian Paints continued to face selling pressure, ending as a top laggard.
- Titan Company and HCL Technologies witnessed profit-booking after recent run-ups.
Corporate Spotlight: Infosys Buyback Opens
In major corporate news, IT giant Infosys kicked off its massive ₹18,000 crore share buyback program today.
- Offer Price: The company is buying back shares at ₹1,800 per share, a significant premium over the current market price.
- Duration: The tender offer route buyback will remain open until November 26, 2025.
- Impact: The stock remained in focus as investors looked to participate in one of the largest capital return programs in the IT sector this year.
Economic Watch: Trade Deficit Widens
On the macro front, data released earlier this week showed India’s merchandise trade deficit widened to a record $41.68 billion in October, driven by a nearly 200% spike in gold imports ($14.72 billion) due to festive demand. While this puts some pressure on the current account, the market seems to have priced in the data, focusing instead on the robust services export growth and domestic consumption story.
Global Cues
Asian markets ended mostly higher, with Japan’s Nikkei 225 surging over 3% and South Korea’s Kospi gaining 2.5%, tracking positive overnight moves on Wall Street ahead of key earnings from US tech majors.
