Bulls Unleash Dalal Street Frenzy, Sensex Rockets 1,718 Points As Nifty Reclaims 25,000

Mumbai: Indian equities surged dramatically on Friday, with major indices jumping over 2 percent as intense buying drove the Sensex above 81,000 and the Nifty 50 past the symbolic 25,000 mark. The BSE Sensex skyrocketed 1,718.02 points, a 2.17 percent increase, to reach 81,028.02, while the NSE Nifty 50 climbed 493.75 points, or 2.01 percent, to close at 25,030.35, according to market data.

Both indices maintained their upward trajectory, with the Sensex moving from an intraday low of 79,016.05 to hit 81,028.02, and the Nifty rebounding from 24,388.05 to hit 25,030.35. Five key factors may have contributed to the rally: bargain hunting as depressed valuations following prior corrections spurred investors to buy undervalued stocks, LG Electronics' Q2 profit surge of 25.7% to ₹489 crore pushing its shares up nearly 7% to ₹1,807, global cues such as geopolitical developments and crude oil prices potentially boosting domestic risk appetite, increased interest in banking stocks due to their major weightings in the indices, speculative short covering as bearish traders may have liquidated positions following the sharp intraday advance, and festive sentiment ahead of Diwali Muhurat trading on Sunday, which could have bolstered speculative interest and trading activity.

Foreign institutional investors returned strongly, buying around Rs 14,975 crore worth of equities on Thursday, marking their biggest single-session purchase in nearly six years. Overseas selling had been persistent, and the renewed inflows helped restore confidence in Indian large-cap equities. Strong quarterly earnings for September reinforced bullish sentiment, with Mahindra & Mahindra attracting buying interest following a 25% increase in consolidated quarterly profit.

Financial, automobile, and technology companies also benefited from selective institutional accumulation. While the Nifty's move above 25,000 and the Sensex's climb beyond 81,000 signify significant psychological breakouts, investors should be aware of ongoing geopolitical risks, crude price volatility, and potential profit-taking following the sharp advance.

Continued strong institutional inflows and solid earnings will determine whether the rally persists into the Diwali trading week.