How Are Sensex and Nifty Performing After 6 Days of Gains Driven by IT Stocks?
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Synopsis
On October 23, the Sensex and Nifty indices continued their impressive rise, fueled primarily by strong buying in IT stocks. Despite some profit-taking, the indices are set for a strong short-term outlook. Discover how these fluctuations might impact your investments and the broader market sentiment.
Key Takeaways
- Sensex and Nifty extended their winning streak for the sixth day.
- IT stocks were the primary drivers of this rally.
- The Sensex reached a new 52-week high of 85,290.
- Profit booking was observed, leading to a slight dip from the day’s highs.
- The short-term trend remains positive for both indices.
Mumbai, Oct 23 (NationPress) The equity benchmark indices have maintained their upward trajectory for the sixth consecutive day on Thursday, primarily driven by robust buying activity in IT stocks.
Nonetheless, both indices concluded the day below their peaks, with some profit-taking occurring later in the session.
The Sensex reached a new 52-week high of 85,290 during the trading day, soaring by as much as 864 points. It ultimately closed with a slight increase of 130 points, or 0.15 percent, at 84,556.
The Nifty also experienced a rise, hitting an intra-day high of 26,104 before finishing almost unchanged at 25,891, up by 23 points. Analysts noted that the Nifty completely erased its morning gains; however, the short-term trend remains robust.
According to market experts, "A large red candle has formed on the daily chart, suggesting a potential pullback towards the 25,700 level in the coming days. Nonetheless, the short-term trend is still intact, with a chance to revisit higher levels around 26,200 within the next 10 to 15 days."
Infosys spearheaded the surge among Sensex stocks, jumping by 4 percent after its promoters opted out of participating in the company’s Rs 18,000 crore share buyback.
Other IT stocks also saw gains, with HCL Technologies and TCS rising by more than 2 percent each amid reports that India and the US are likely to finalize a trade deal soon.
Other notable gainers included Axis Bank, Kotak Mahindra Bank, Titan, and Tata Motors, each rising over 1 percent.
Conversely, Eternal declined by 3 percent, becoming the top laggard in the Sensex, while Bharti Airtel, Ultratech Cement, ICICI Bank, and Reliance fell between 1 and 2 percent.
In the broader market, sentiment remained subdued. The BSE MidCap index dipped by 0.2 percent, and the SmallCap index decreased by 0.5 percent.
Among sectors, IT emerged as the standout performer, with the BSE IT index advancing by 2.2 percent.
Textile and shrimp-related stocks also experienced significant gains due to optimism surrounding the potential US-India trade agreement.
The rupee appreciated by 0.19 paise, closing at 87.82—up by 0.22 percent—supported by positive sentiment regarding a potential US tariff deal.
Point of View
The recent performance of the Sensex and Nifty indices highlights the resilience of the Indian equity market. While the upward trend is promising, a cautious approach is warranted as profit booking could lead to short-term volatility. Our analysis remains rooted in providing clear, unbiased insights for our readers, keeping them informed and prepared.
NationPress
23/10/2025
Frequently Asked Questions
What factors are driving the recent gains in the Sensex and Nifty?
The recent gains in the Sensex and Nifty are primarily driven by strong buying in IT stocks, particularly following news of potential trade agreements between India and the US.
Should investors be concerned about profit booking in the market?
Profit booking is a normal market phenomenon. While it may cause short-term fluctuations, the overall trend remains strong, and long-term investors should focus on their strategies.
What sectors are performing well in the current market?
The IT sector has been the standout performer, with significant gains, while other sectors like textiles and shrimp-related stocks are also seeing positive momentum.
How does the currency market impact equity indices?
The performance of the rupee can influence investor sentiment. A stronger rupee can boost market confidence, especially in export-driven sectors.
What are analysts predicting for the Nifty in the coming days?
Analysts have indicated that while there may be some pullback, the short-term trend for the Nifty remains intact, with potential to reach higher levels around 26,200.
