Sensex gains 450 pts, Nifty above 25,200: Buying in Oil & Gas, financials among key factors behind market rise

Sensex, Nifty extend rise in October 7 trade. 

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26 Aug, 2025 12:21

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The equity benchmark indices extended gains for the fourth straight session on Tuesday, supported by buying in oil & gas and key financials.

At around 1:30 p.m., the Sensex rose 444.36 points or 0.54 percent to 82,234.48, while the Nifty climbed to 25,195.85, up 118.20 points or 0.47 percent.

Here are the key factors behind the market rise:

1) Buying in energy, metal shares: Sectoral indices of energy and metal advanced 0.8 percent and 0.5 percent, respectively. Oil marketing companies gained on weak international crude oil prices and expectations that the government will compensate them for LPG losses. Siemens Energy India and Petronet LNG were among the major gainers.

2) Fed rate cut hopes: Investor sentiment was also lifted by expectations of a U.S. Federal Reserve rate cut later this month. A potential rate cut by the Fed generally boosts global liquidity and makes emerging markets like India more attractive for foreign investors.

"Liquidity tailwinds, global market resilience, and a dovish stance from central banks are fuelling the rally, with record highs on Nasdaq and S&P 500 boosting sentiment," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, told PTI.

3) Strong Q2 business updates: Quarterly updates from banks and financials supported market optimism. Bajaj Finance reported a 26 percent rise in new loans booked at 12.17 million in the second quarter, compared to 9.69 million a year earlier. Its customer franchise grew to 110.64 million as of September 30, up from 92.09 million in the same period last year.

"The market undertone remains positive as there are expectations of revival in demand driven by consumption tax cuts and RBI's CRR cuts," Aamar Deo Singh, senior vice president at Angel One told Reuters.

4) Positive global cues: Asian markets traded higher, with Japan’s Nikkei 225 in positive territory. Markets in China and South Korea were closed for holidays. U.S. indices ended mostly higher in the previous session, adding to the upbeat tone.

5) Value buying for the fourth day: Investors continued value buying for the fourth consecutive session after an earlier eight-day losing streak. Bargain-hunting at lower levels provided further support to domestic equities.

6) Rupee trades higher: The rupee strengthened slightly to 88.7375 against the U.S. dollar at 10:35 am IST, up from 88.78 in the previous session. Analysts said expected capital inflows aided the local unit, though trade concerns with the U.S. could limit gains.

7) FII selling declines: FII selling has declined recently, analysts noted. "The ongoing mild rally in the market has the potential to gain momentum. The FII selling in India is slowly declining since the sharp appreciation in other markets has pushed up their valuations and the valuation differential between India and other markets has come down. Yesterday FII selling figure was only Rs 313 crores and this was totally eclipsed by the massive DII buying of Rs 5036 crores. The steady inflows into mutual funds, particularly the SIP inflows, is a strong support to the market," noted Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.