Sensex jumps 773 points to 81,879 and Nifty ends at 25,255 as PSU banks and autos lead

The gains came after a strong run into the holiday. The Sensex rose for seven straight sessions to 6 November, jumping 2,009 points on 5 November and 1,718 points on 6 November, and the Muhurat session on 8 November ended at 80,999. Wednesday's close is about 880 points above that Muhurat level.

Which sectors and stocks moved the market

The Nifty PSU Bank index was the best performer among the sector indices, rising nearly 3%. The Nifty Bank, Nifty Private Bank and Nifty Auto indices also gained strongly. Among the leaders in the Nifty 50 were Mahindra & Mahindra, InterGlobe Aviation and Trent. Information technology and healthcare shares were relatively weak, which limited the overall gain.

The broader market took part. The Nifty MidCap 100 rose 0.81% and the Nifty SmallCap 100 gained 1.59%, so smaller companies rose by more than the large ones.

Three reasons were given for the rise. Crude oil prices fell further, with Brent having closed below $92 a barrel on 9 November, its lowest close since 31 August, after President Donald Trump said the war on Iran was effectively over. Lower crude is good for India, which imports most of its oil. Foreign institutional investors returned to buying in November after months of selling, according to market reports, though the amount for Wednesday was not given. And global cues were positive. Reports also said that company results for the July to September quarter were better than expected, and that Moody's had raised its forecast for India's growth in 2026-27 to 7%.

The distance to the levels analysts mention is small. The Nifty's close is 244.95 points, or about 1%, below the 25,500 resistance and 255.05 points above the 25,000 support, while the Sensex is 879.40 points, or about 1.1%, above the 81,000 mark it needs to hold. Since 5 November, when the Sensex closed at 79,310 after its sixth straight gain, the index has added about 2,570 points, or 3.2%, which is why some analysts expect profit-taking even if the trend stays up.

Public sector banks have been among the strongest parts of the rally in two sessions running. On Monday the Nifty PSU Bank index rose more than 3%, and on Wednesday it rose nearly 3%. Pharmaceutical shares gained on Monday and then lagged on Wednesday with healthcare, while information technology shares fell on Monday and stayed weak. That rotation, from technology and healthcare into banks and autos, is the main sector story of the week.

What analysts and traders will watch next

Analysts quoted in market reports put immediate resistance for the Nifty at 25,500 and a support zone at 25,000 to 24,800, and some warned of profit-taking after such a sharp rally. For the Sensex, the question is whether it can hold above 81,000 in the sessions ahead.

The next data points are close. India's retail inflation for October is due on Thursday, 12 November, at 4 pm. September's figure was 5.54%, and the Reserve Bank raised the repo rate to 5.50% on 7 October. A number above forecasts would strengthen the case for further tightening, which usually weighs on banks and housing finance shares, while a lower number would help them. Milk prices are also rising from 12 November, with Amul and Mother Dairy announcing increases of Rs 2 to Rs 4 a litre, which will feed into food prices in the coming months.

Abroad, traders are watching bond yields and the US Federal Reserve. American consumer prices rose 0.4% in October, more than expected, and traders now price a quarter-point rate rise in December in full. Higher expected US rates tend to strengthen the dollar and draw money away from emerging markets, so a firm foreign buying trend in India would depend on that outlook holding. Investors who want the full day's data, including advances and declines and the amounts bought by foreign and domestic institutions, can find them in the exchanges' own end-of-day reports.