Sensex, Nifty climb 1% as financials and energy stocks lead; all sectoral indices in green

The Indian stock market surged on October 28, with both the Sensex and Nifty recording gains of around 1 per cent by midday, led by strong buying in financial and oil & gas stocks. An uptick in ICICI Bank shares following its Q2FY25 results and a calming of Middle East tensions helped bolster early market sentiment. At 11:22 AM, the Sensex climbed 793 points, or 1 per cent, to 80,196, while the Nifty rose 217 points, or 0.9 per cent, to 24,398. Overall market breadth was positive, with 2,288 shares advancing, 1,083 declining, and 131 remaining unchanged.

Broader Market Performance

Broader indices mirrored the rally, with the BSE Midcap index rising by 0.7 per cent and the BSE Smallcap index up 1.3 per cent. All thirteen sectoral indices were in green territory, led by Nifty Auto, Realty, Media, Metal, and PSU Bank, which each rose between 1 and 3 per cent. The Nifty Metal and Auto indices bounced back after extended losing streaks, showing growth of 2.5 per cent and 1 per cent, respectively, driven by stocks like Vedanta and Hindalco.

Key Market Drivers

- Q2 Earnings Impact: ICICI Bank’s robust Q2FY25 performance spurred gains across financial stocks, while other ongoing quarterly earnings also influenced investor sentiment.
- Easing Global Tensions: Reduced tensions in the Middle East have contributed to lower crude prices, a positive sign for energy stocks and broader market sentiment.
- Technical Momentum: Analysts indicate a strong resistance range for the Nifty around 24,413 to 24,462, with support at 24,073. A breach below this support could draw attention to the 23,779 level, though current sentiment suggests stability.

Outlook and key events ahead

Looking forward, investors are expected to keep a close watch on several key events and factors, including the Q2FY25 earnings season, geopolitical developments in the Middle East, crude oil prices, trends in foreign institutional investor (FII) flows, and the upcoming US presidential election. As the week progresses, the expiry of monthly derivatives could also contribute to volatility, potentially impacting near-term market dynamics.

With both midcap and smallcap stocks showing renewed traction, there is optimism for further recovery, although market watchers suggest caution as global events and investor sentiment may influence the extent of gains.