Stock market today: Extending gains to the third consecutive session, Indian stock market benchmarks- the Sensex and the Nifty 50- clocked healthy gains in intraday trade on Friday, October 17, despite weak global cues.
The Sensex jumped over 600 points, or 0.75 per cent, to an intraday high of 84,108, while the Nifty 50 reclaimed the 25,760 level, rising 0.70 per cent. However, broader markets were lacklustre on concerns over stretched valuations.
In these three sessions, the Sensex has risen by over 2,000 points, or 2.5 per cent, while the Nifty 50, too, has jumped 2.4 per cent.
Why is the Indian stock market rising?
Let’s take a look at five factors that are driving the Indian stock market higher:
1. Short covering in select heavyweights
Experts say investors appear to be covering their shorts in select heavyweights, including Bharti Airtel, HDFC Bank, Reliance Industries and ICICI Bank, which is keeping the benchmarks up.
Meanwhile, following the recent correction, the valuation of the Nifty 50 has become rational, triggering buying interest in select large caps.
“The market is resilient and technically strong. Price action in the leading stocks indicates short covering. Even now, there are big shorts in the system, and the strength in the market might keep the bears on the back foot, facilitating further short covering,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments, observed.
2. In-line Q2 results
So far, the numbers for the September quarter have been in line with expectations. There have been no negative surprises. While it is too early to say that Q2 earnings will remain stable, as major banking names have yet to announce their Q2 results, it is worth noting that the trend has been stable.
will report its Q2 results on Friday. The heavyweight is expected to report healthy double-digit growth in margin on a year-over-year basis.
Experts expect healthy earnings from Q3. So, the market may be discounting that the worst for earnings is behind.
According to brokerage firm , FY26 will mark the crossover from subdued low-single-digit earnings growth to more sustainable double-digit earnings growth.
“Nifty earnings growth is expected at a healthy 8 per cent and 16 per cent year-on-year (YoY) in FY26 and FY27, respectively, as compared to 1 per cent in FY25,” Motilal Oswal said.
3. FIIs nibble at Indian stocks again
Foreign institutional investors (FIIs) have started buying Indian stocks moderately. In the previous session, they bought Indian stocks worth ₹997.29 crore in the cash segment. Last week, foreign investors purchased Indian stocks worth nearly ₹3,000 crore in the cash segment, the first positive figure after several weeks.
4. Dollar’s weakness
The dollar index is at its two-week low, which appears to have triggered some foreign capital inflows into emerging markets, such as India. The dollar index has been in the red for four consecutive sessions and appears poised to close the week in the red.
(This is a developing story. Please check back for fresh updates.)
Read all market-related news
Read more stories by
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.