The Indian stock market remained in a strong uptrend on Friday, October 17, 2025, as both Sensex and Nifty 52-week high levels were achieved. The Sensex soared 2,133 points (2.6%) in three sessions to reach 84,163, while the Nifty50 jumped 630 points (2.51%) to hit 25,776, marking its third consecutive session of gains ahead of Diwali.

Key Takeaways

• Sensex and Nifty 52 week high rally driven by strong banking and IT sector performance.
• Banking stocks hit record highs led by IndusInd, HDFC, and Axis Bank.
• Q2 earnings from Persistent and Infosys boosted investor confidence.
• Foreign investors turned net buyers after months of outflows.
• Analysts expect Samvat 2083 to deliver strong returns amid improving corporate growth.

Why Are Markets Soaring?

The Indian stock market’s record-breaking rally ahead of Diwali is not driven by one factor alone. Multiple forces, from strong banking stocks to renewed foreign investor activity, have lifted both indices to new 52-week highs.

Banking Stocks Lead the Rally

The latest rally in Sensex and Nifty 52-week high levels is largely fueled by strong buying in banking shares. The NIFTY Bank index climbed 406 points to hit an all-time high of 57,828.

Top gainers included IndusInd Bank (up 1.72%), followed by IDFC First Bank, HDFC Bank, Axis Bank, ICICI Bank, and State Bank of India. Analysts suggest that rising credit demand and improving asset quality have strengthened investor confidence in the banking sector.

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Earnings Optimism Drives Market Sentiment

Optimism over Q2 earnings also contributed to the latest surge. Indian IT majors reported stable results, while mid-sized players like Persistent Systems posted strong quarterly numbers.

Persistent reported an 11% QoQ rise in net profit to ₹471.47 crore, and 7.4% revenue growth to ₹3,580.72 crore in Q2 FY26. The company also improved its operating margin to 16.3%, showcasing sustained growth momentum.

Similarly, Infosys revised its revenue growth guidance upward to 2%-3%, reflecting stronger-than-expected client spending in key markets.

Even though Axis Bank saw a decline in net profit, brokerage houses like CLSA and Bernstein highlighted improving loan growth, asset quality, and a potential turnaround trend in the coming quarters.

Foreign Investors Return as Net Buyers

Another major factor driving the Nifty 52-week high rally is renewed foreign investor participation. Foreign Institutional Investors (FIIs) bought shares worth ₹997 crore on Thursday, and ₹4,327 crore so far this month.

This inflow follows months of net selling, signaling renewed global confidence in Indian equities. Domestic Institutional Investors (DIIs) also contributed strongly, buying shares worth ₹4,076 crore on the same day.

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Market Experts Remain Optimistic

Experts see this momentum continuing into Samvat 2083. Chandraprakash Padiyar, Senior Fund Manager at Tata Asset Management, stated that while Samvat 2082 may remain range-bound, the second half could bring stronger earnings growth.

He advised investors to use this period to gradually build positions for potential upside during Q4 FY26 and beyond.

Top Gainers and Losers on Nifty50

Among the Nifty50 constituents, Asian Paints led the rally with a 4.6% gain to ₹2,520, followed by Bharti Airtel, Apollo Hospitals, Mahindra & Mahindra, Hindustan Unilever, and Max Healthcare.

On the downside, Wipro, Infosys, Jio Financial Services, and ONGC ended in the red, witnessing minor corrections after recent gains.

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