Indian stock markets continued their upward march for the fourth consecutive session on Tuesday, October 7, 2025, as investors showed renewed confidence in large-cap banking stocks. The momentum was largely fueled by sustained buying in HDFC Bank and ICICI Bank, supported by strong domestic institutional activity, even as global cues remained mixed.
A Volatile Session Ends on a Positive Note
After a choppy session marked by frequent fluctuations, the 30-share BSE Sensex managed to settle higher by 136.63 points or 0.17% at 81,926.75. Intraday, the index climbed as much as 519.44 points to touch 82,309.56 before witnessing mild profit booking. Similarly, the broader 50-share NSE Nifty edged up by 30.65 points or 0.12% to end at 25,108.30, maintaining its hold above the 25,000 mark.
Banking Stocks Power the Rally
Heavyweight banking counters remained the key drivers of the day’s gains. HDFC Bank and ICICI Bank led the charge, attracting fresh buying interest from both retail and institutional investors. Other major gainers included Bharti Airtel, HCL Tech, UltraTech Cement, Power Grid, Bajaj Finance, and Tata Steel, which provided strong support to the indices.
However, not all sectors shared the optimism. Axis Bank, Tata Motors, Trent, and Infosys registered marginal losses, capping the market’s overall upside.
Institutional Investors Continue to Influence Market Mood
Data from exchanges showed that while Foreign Institutional Investors (FIIs) sold equities worth ₹313.77 crore on Monday, Domestic Institutional Investors (DIIs) emerged as net buyers with purchases totaling ₹5,036.39 crore. This robust domestic participation helped offset the foreign outflows, reflecting growing faith in India’s long-term economic outlook.
Mixed Global Cues Keep Investors Cautious
Asian markets painted a mixed picture. Japan’s Nikkei 225 closed in the green, while Chinese and South Korean markets remained shut for holidays. European equities traded on a mixed note during the session, and Wall Street had ended mostly higher in the previous day’s trade.
Meanwhile, global crude oil prices softened slightly, with Brent crude slipping 0.15% to $65.37 per barrel, offering some relief on the inflation front.
Previous Session Recap
In the previous session on October 6, the Sensex had surged by 582.95 points or 0.72% to close at 81,790.12, while the Nifty climbed 183.40 points or 0.74% to end at 25,077.65, marking a strong start to the week.
Market Outlook: Consolidation Ahead?
Market analysts suggest that while the recent rally has been encouraging, the indices might enter a brief consolidation phase as investors await upcoming quarterly earnings and inflation data. The strong performance of banking and financial sectors could continue to lend support, but global economic signals and oil price movements will likely shape short-term trends.
