Sensex Surges 700+ Points: Key Factors Driving Today’s Stock Market Rally
Nifty Hits 26,087 as IT, Pharma, and Textile Stocks Lead Festive Rally
Mumbai, Oct 23: The Indian stock market rallied strongly on Thursday, with the Sensex soaring 760.80 points to 85,187.14 and the Nifty50 gaining 218.50 points to 26,087.10 around 9:40 am, inching closer to record highs.
The festive season rally was fueled by growing optimism over a potential India-US trade deal, which could see U.S. tariffs on Indian exports reduced from 50% to 15–16%. Reports suggest the agreement may focus on energy and agriculture, with India gradually aligning crude oil imports from Russia with U.S. strategic interests.
Gaurav Sharma, Associate VP and Head of Research at Globe Capital, told Business Today, “The rally is largely due to the approaching trade deal. If it materializes, IT and pharma stocks, which were most affected by U.S. tariffs, are expected to benefit the most.” The Nifty IT index jumped nearly 2%, with Infosys gaining 3%, supported by expectations of a promoter excluded buyback.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “The market is optimistic about an early deal. Combined with strong festive sales, renewed FII buying, and short covering, equities are showing robust momentum. Textile stocks are likely to gain as well.”
From a technical perspective, analysts note that the Nifty is trading near its upper Bollinger Band, with upside targets at 26,186 and 26,800, and support at 25,780. Anand James, Chief Market Strategist at Geojit, remarked, “An outright reversal seems unlikely today.”
Will the Rally Continue?
Traders are closely watching whether the rally can sustain itself in the coming sessions. Strong domestic consumption, retail participation in buybacks, and positive foreign inflows are expected to support the market. However, analysts caution that global cues, geopolitical events, or delays in trade negotiations could trigger short term volatility.
For now, investor sentiment remains positive, and benchmarks like the Sensex and Nifty are on track to potentially reach fresh record highs before the year end.
