Nifty fails to hold 25,300, Sensex rises 300 points with gains driven by large-cap banking stocks

The Nifty 50 and Sensex closed the week with gains of roughly 1.5 percent each.

A smart rally in banking counters drove the benchmark equity indices Nifty 50 and Sensex higher by half a percent in the afternoon session on October 10, with the indices set to settle the week with gains of 1.5 percent each.

At close, the Sensex was up 299.14 points or 0.36 percent at 82,471.24, and the Nifty was up 97.60 points or 0.39 percent at 25,279.40. About 2202 shares advanced, 1587 shares declined, and 127 shares unchanged.

On the sectoral front, banking stocks drove the gains. SBI, HDFC Bank, Axis Bank and ICICI Bank were the top contributors to rise in the benchmark indices, while the Bank Nifty gained rose around 0.8 percent. The Nifty Private Bank index was nearly one percent higher, while Nifty PSU Bank index jumped almost two percent.

Not just banking, but the FMCG and auto gauges posted smart gains of half a percent each, while realty and pharma indices jumped over one percent. On the losing end, the metal index capped the wins in trade, with the IT index marginally in the red.

The AMFI September data highlights a steady yet insightful shift in investor preferences. The mutual fund industry added 40 lakh folios in the month, with total AUM inching up from Rs 75.18 lakh crore to Rs 75.38 lakh crore, reflecting continued investor engagement. Systematic Investment Plan inflows remain robust, signalling confidence in disciplined, long-term wealth creation.

A standout trend is the growing appetite for precious metals. "Global macro factors underpin this trend. Anticipated interest rate cuts, stubborn inflation, slowing global growth, and persistent geopolitical tensions are driving investors towards safe-haven assets. Fresh investments by central banks in gold and silver, coupled with record flows in bullion ETFs, further reinforce this demand," said Kartik Jain, MD & CEO, Shriram AMC.

On the global front, ongoing constructive dialogue between India and the USA helped bolster market sentiment, adding optimism and confidence among market participants. The derivatives segment displayed a clear bias towards advances, with the advance-decline ratio favoring positive movers, said Ashika Institutional Equities.

Notably, significant open interest build-up was seen in names like Divis Laboratories, Tata Elxsi, PG Electroplast, Hindustan Zinc, and SBI Life, indicating fresh participation and trader positioning in these counters.

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