The market is stepping into the Diwali week with optimism. While trading will remain closed tomorrow, there will be a special one-hour Muhurat trading session at noon, marking the auspicious beginning of the festive season. Traditionally held in the evening, this year’s session comes ahead of Wednesday’s full-market holiday.
Having climbed to its highest level in a year, the Nifty is now eyeing the 26,000 mark, with bullish sentiment driven by strong quarterly results from Reliance Industries and major banks.
The conclusion of the India–US trade talks brought no major announcements but offered reassurance that gaps on key issues are narrowing. Meanwhile, the upcoming ministerial-level dialogue between the US and China later this week — ahead of the expected Trump–Xi meeting — has raised hopes of partial agreements.
Tensions in Gaza remain limited, and the situation is seen as stable. Observers expect more clarity on the Ukraine issue after the planned Trump–Putin talks.
Corporate earnings have also lifted confidence. Results from 240 Indian companies for the second quarter show improvement in both sales and profits, while expectations of lower retail inflation in October are further boosting market sentiment.
The GIFT Nifty, which closed at 25,917.50 on Friday night, climbed to 25,985.50 early Monday, signalling a strong opening for Indian equities.
European markets ended Friday in the red, with most indices falling more than 1% amid renewed concerns about the banking sector. Losses in some US regional banks and investment banks like Jefferies and UBS have stirred uncertainty across Europe. Analysts expect further clarity when major European banks announce results this week.
US markets rebounded on Friday as investors concluded that banking troubles were not severe. Optimism over the upcoming US–China trade discussions also lifted sentiment. Key indices gained about 0.5% each, with bank stocks — which had fallen sharply on Thursday — recovering around 6%.
The Dow Jones climbed 238.37 points (0.52%) to close at 46,190.61, the S&P 500 gained 34.94 points (0.53%) to 6,664.01, and the Nasdaq Composite advanced 117.43 points (0.52%) to 22,679.98.
US futures remain in the green, with the Dow up 0.15%, the S&P 0.24%, and the Nasdaq 0.31%.
Asian markets followed suit, with Japan’s Nikkei surging 2.75%, South Korea’s index up 0.70%, and Hong Kong and Chinese indices trading higher. China’s central bank left interest rates unchanged, while GDP data due today is expected to show 4.8% growth for the third quarter, down from 5.2% in the previous one.
After a cautious start on Friday amid US banking worries, Indian equities rallied sharply, though some gains were later trimmed. The Sensex briefly crossed 84,000 before closing slightly lower, while the Nifty ended at a one-year high.
Sectors like FMCG, auto, pharma, healthcare, private banks, and financial services led the rally, while IT, media, metals, and PSU banks dragged.
The Nifty rose 124.55 points (0.49%) to close at 25,709.85, the Sensex climbed 484.53 points (0.58%) to 83,467.66, and the Bank Nifty advanced 290.80 points (0.51%) to 57,713.35.
The earnings season is off to a promising start. Among the 240 companies that have reported so far, sales rose 8.4% and net profit 9.5% year-on-year. Excluding banks and financial firms, revenues grew 10.2% and profits 13.5%, led by strong results from Reliance Industries and UltraTech Cement.
In a significant development, Emirates NBD, a leading Gulf-based bank, will acquire a 60% stake in RBL Bank for ₹26,833 crore, valuing shares at ₹280 each through a preferential issue. RBL’s share capital will rise from ₹1,000 crore to ₹1,800 crore following board approval.
The deal requires clearances from shareholders, the RBI, and SEBI, with completion targeted for April 1, 2026.
Reliance Industries reported better-than-expected Q2 results, with revenue up 10% to ₹2.55 lakh crore and net profit up 10% to ₹18,165 crore. Operating margin improved to 17.7%.
HDFC Bank’s net profit rose 10.8% to ₹18,641 crore, while ICICI Bank reported 5.2% growth in profit to ₹12,358 crore.
IndusInd Bank slipped into a ₹445 crore loss, hit by microfinance provisions, while PNB’s profit grew 14% to ₹4,904 crore. Federal Bank’s profit dipped 9.6% to ₹955 crore, though still above estimates
After a record-breaking nine-week surge, gold prices eased on Friday. The metal fell 4.45% to $4,186.50 per ounce after touching $4,380.10, before recovering slightly to $4,252.80. Despite the dip, gold ended the week 6% higher, marking its ninth straight weekly gain — a streak seen only five times since 1970.
Analysts say that if gold continues to rise for a tenth week, it would rewrite history. Previous patterns suggest that after long uptrends, corrections tend to follow.
In Kerala, the price of 22-carat gold hit a record ₹97,360 per sovereign on Friday before falling ₹1,400 to ₹95,960 on Saturday.
Silver prices dropped 5% to $51.98 per ounce, with expectations of easing shortages. Major Indian ETFs temporarily halted unit sales amid supply constraints, as inventories were diverted to the US over tariff concerns. Analysts expect supply to stabilise and prices to ease by the week’s end.
Industrial metals traded mixed. Copper edged up 0.31% to $10,527.50 per tonne, while aluminium, lead, nickel, zinc, and tin declined.
In the commodities market, rubber fell 0.52%, cocoa dropped 1.6%, while tea remained firm and palm oil gained 0.09%.
The US dollar index climbed to 98.51, with the euro and pound weakening, and the yen falling to 151.09 per dollar. US 10-year bond yields rose to 4.02%.
In India, the rupee depreciated 15 paise to close at ₹87.97 per dollar despite limited RBI intervention.
Brent crude slipped to $61.08 per barrel after an early uptick, while WTI traded at $57.34 and Murban crude at $63.47. The market expects prices to move closer to $50 per barrel amid easing Middle East tensions and shifting geopolitical risks.
Bitcoin plunged to $103,500 during the week, down from $125,000, before recovering to $108,200. Ethereum climbed back to $3,950, while Solana hovered around $187 after an early fall.