Sensex & Nifty Hit 52-Week Highs: Festive Rally Boosted by Trade Deal Optimism

Dalal Street witnessed a strong session on October 23, 2025, as the Sensex surged 800 points to 85,272.40 and the Nifty 50 reached 26,099.70, approaching its all-time high of 26,277.35. The rally is supported by festive-season optimism, potential India–US trade deal developments, and robust domestic and foreign institutional investor (FII) inflows.

Sectors Leading the Rally

Key sectors driving gains include:

• IT stocks benefiting from potential tariff reductions.

• Pharmaceuticals, including Sun Pharma and Laurus Labs, showing strong momentum.

• Textiles, expected to gain from easing of trade barriers.

Other large-cap performers contributing to the rally include HUL, SBI Life, Dr Reddy’s, and Kotak Bank.

Trade Deal Optimism Fuelling Markets

Positive signals regarding a possible India–US trade agreement have strengthened investor confidence. Analysts note that the reduction of tariffs on Indian exports to 15–16% could provide a major boost to both the economy and the stock markets. Short-covering and renewed FII buying are also adding fuel to the rally.

Technical Indicators Support Bullish Trend

From a technical perspective:

• Nifty opened with a gap-up above 26,000, a key psychological level.

• Momentum indicators remain strong, with the index trading near the upper Bollinger Band.

• Immediate resistance is seen at 26,200–26,300, while support lies at 25,940–25,800.

• Bank Nifty also shows strength, with resistance at 58,500–58,800 and support at 58,000–58,250.

Analysts suggest the upside target for Nifty is 26,186, with an optimistic stretch target of 26,800, while no outright reversal is expected in the near term.

Broader Rally Across Sectors

The Mahurat trading session marked a strong start to Samvat 2082, with the broader rally now attracting participation across multiple sectors. Rising earnings and continued domestic liquidity are expected to sustain the momentum, provided there is clarity on the trade deal and stable global macro conditions.

While some caution is warranted due to elevated valuations and potential global volatility, Dalal Street currently appears poised to test fresh highs as the festive season progresses.