The equity benchmark indices extended their winning streak to a seventh consecutive session on Friday (November 6), marking the first time in three years that benchmark indices have posted gains for seven straight trading days.
The Nifty 50 reclaimed the 25,000 mark and closed at a nine-month high, while the Sensex surged 1,718 points, led by heavy buying in banking heavyweights and select stocks following quarterly earnings.
The Sensex ended 1,718 points, or over 2%, higher at 81,028, while the Nifty 50 gained 494 points to settle at 25,030. The Nifty Bank index advanced 1,312 points to 59,086. However, the Nifty Midcap Index underperformed, slipping 14 points to close at 60,607.
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Here are three key reasons behind Friday’s market rally:
1. Heavyweight banking stocks lead the rally
Buying in heavyweight stocks, particularly banking names, drove the benchmark indices higher. HDFC Bank, ICICI Bank and Axis Bank gained 3-4% each, supporting the broader market rally.
The strength in banking heavyweights also helped the Nifty Bank index gain 1,312 points to close at 59,086. Only five Nifty 50 stocks ended the session in the red, while several stocks gained as much as 5%.
2. M&M leads Nifty gainers after strong Q2 internals
Mahindra & Mahindra (M&M) emerged as the top Nifty 50 gainer, supported by strong second-quarter earnings internals. Among other stocks, Yes Bank was one of the top midcap gainers, rising 6% on healthy trading volumes. Precious metal stocks continued to attract buying interest, with Titan and Kalyan Jewellers gaining up to 5%.
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3. Stock-specific Q2 concerns weigh on Midcaps
Despite the strong rally in benchmark indices, midcap stocks remained relatively weak, with market breadth favouring declines. Astral plunged nearly 10% after its second-quarter growth disappointed. Fortis Healthcare fell 6% after issuing a cautious margin outlook for FY27.
Samvardhana Motherson declined over 5% despite reporting healthy second-quarter results. Tube Investments also closed lower, although the stock recovered from its day’s lows, with its outlook remaining positive.
The divergence between heavyweight stocks and the broader market was evident in the Nifty Midcap index, which ended 14 points lower at 60,607 even as the benchmark Nifty reclaimed 25,000.
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From the Sensex basket, Mahindra & Mahindra Ltd, ICICI Bank Ltd, Titan Company Ltd, Axis Bank Ltd, Tata Steel Ltd and NTPC Ltd were the major gainers. Hindustan Aeronautics Ltd, Power Grid Corporation of India Ltd, Shriram Finance Ltd, JSW Steel Ltd and Max Healthcare Institute Ltd were the biggest laggards.
Market This Week (November 2 to 6)
The equity benchmark indices BSE Sensex and NSE Nifty recorded gains across all five trading sessions this week, posting its biggest weekly advance in six years, with the Nifty rising over 8%. In absolute terms, this was the biggest-ever weekly gain for the Nifty.
The rally added nearly ₹30 lakh crore to the combined market capitalisation of BSE-listed companies in a single week. All sectoral indices ended the week higher, with gains of up to 10%. The Sensex and Nifty advanced over 8% each, while the Nifty Bank index gained 8% and the Nifty Midcap index rose 6%.
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Among Nifty 50 constituents, 46 stocks ended the week higher, with 15 stocks gaining nearly 10%. Reliance Industries, Jio Financial Services, Titan, UltraTech Cement and ICICI Bank were among the top Nifty gainers.
In the midcap segment, Uno Minda, Kalyan Jewellers, Muthoot Finance, Ashok Leyland and Nippon Life India Asset Management were among the top performers.
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