Markets Rally on Strong Bank Earnings Amid Easing US-China Trade Tensions

At the end of the trading session today, BSE Sensex settled at 84,363.37, rising 411.18 points or 0.49 per cent while NSE Nifty50 stood at 25,843.15, up by 133.3 points or 0.52 per cent.

In today's trade, the investors displayed positive sentiment, with gains in PSU banks, private banking, oil and gas sectors supporting sentiment, while sectors such as consumer durables and metal witnessed pressure.

The Bank Nifty stole the spotlight, registering a new all-time high for the second consecutive trading session which reflected strong momentum in the banking space and investor confidence in financials. The Bank Nifty settled at 58,033.20 at the end of the session.

Broader indices during the day's session traded higher, displaying investors' optimism amid selective buying and profit booking in some sectors.

At National Stock Exchange (NSE), Reliance Industries, Shriram Finance, Bajaj Finserv, Cipla, Dr Reddy's Labs were among major gainers, while ICICI Bank, Eternal, Adani Ports, JSW Steel, M&M were the major losers.

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities said, "As the festive spirit of Diwali fills the air with optimism and celebration, the Indian equity markets have mirrored the mood with a strong start to the week. Investors welcomed the auspicious beginning with renewed enthusiasm, pushing benchmark indices higher and setting the tone for a potentially prosperous Samvat."

Ajay Bagga, Banking and Market Expert, told ANI, "Indian market futures are continuing their strong close momentum..."

The festive season has witnessed strong consumer spending across sectors such as automobiles, white goods, clothing, gold, and silver.

Market analysts highlighted that this truncated trading week will be event-heavy, with several key triggers lined up for investors.

On October 21, the one-hour Diwali Special Muhurat Trading session, marking the beginning of Samvat 2082, will be closely watched for sentiment cues and festive cheer, with strong retail and institutional participation anticipated.

The Q2FY26 earnings season will continue in full swing, with major companies including Colgate, Hindustan Unilever, Dr. Reddy's Laboratories, SBI Life Insurance, Coforge, and Kotak Mahindra Bank scheduled to report their results. These announcements will offer vital insights into margin trends, demand strength, and sectoral performance as India enters the festive quarter.

"Globally, developments around the proposed U.S. tariffs on China, along with movements in crude oil prices and currency, will remain crucial in shaping global risk appetite and investor sentiment," said Ajit Mishra - SVP, Research, Religare Broking Ltd.

- ANI