Bulls roar on D-St: Sensex jumps 2,000 points, Nifty up 2%; Global equity trends, other factors behind rally

Value buying, strong US labour market data drive Sensex, Nifty higher - Key factors behind rebound

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26 Aug, 2025 12:21

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Rally in financial stocks, a strong US labour market data were among the factors that drove the Sensex and Nifty up as much as 2 percent on November 22. A rally in blue-chip bank stocks also helped the benchmark indices jump in Friday's trade.

BSE Sensex was up 2,051.43 points or 2.65 percent to its intraday high of 79,207.22; while NSE Nifty was up 597.05 points at 23,946.95. Market breadth was overwhelmingly positive, with 2,123 shares gaining, 1,218 shares falling, and 89 shares unchanged.

Buying by domestic institutional investors and firm trends in US markets also added to the recovery in domestic equities. From the 30-share Sensex pack, Reliance Industries, State Bank of India, ICICI Bank, IndusInd Bank, Tata Motors, Power Grid, Bajaj Finance, Bajaj Finserv and Tech Mahindra were the biggest gainers.

Nifty IT, Banks, Oil and Gas and Realty were among the major sectoral gainers. Nifty PSU Bank posted a sharp recovery on Friday trading higher by 2.47 percent. The up trend comes a day after the segment went into a tailspin on November 21, dropping nearly 5 percent. The Nifty PSU Bank index tracks 12 public and private sector banks.

The biggest decline came from the largest private sector lender State Bank of India (SBI), which dropped over 5 percent on Thursday. Today, SBI recovered most of its losses to trade higher by 3.29 percent.

Here are key factors driving domestic markets higher today:

1) IT Stocks Trade Higher: The Nifty IT index surged nearly 2 percent in today's trading session on the back of strong labour market data from the US, indicating rebound in US job growth in November after last month's slowdown. Initial jobless claims in the US fell by 6,000 to a seasonally adjusted 213,000 for the week ended November 16, marking a seven-month low. MphasiS, Wipro were trading over 2 percent higher.

2) Value buying: Value buying was seen in Friday's trade at lower levels leading to a rally in the blue-chip bank stocks. Index heavyweight Reliance Industries was trading over 1 percent higher, up trend was also seen in SBI, ICICI Bank, Adani Ports among other largecaps.

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3) Global markets support domestic markets: Japan’s Nikkei 225 index rose nearly 1 per cent to 38,415.32, buoyed by a slowdown in the nation’s inflation rate, which eased to 2.3 percent in October from 2.5 percent in the previous month—the lowest level since January. On Wall Street, the S&P 500 climbed 0.5 percent to close at 5,948.71. The Dow Jones Industrial Average posted a robust gain of 1.1 percent to settle at 43,870.35, while the Nasdaq Composite edged up marginally by less than 0.1 percent to 18,972.42.

Smaller companies outperformed the broader market, as the Russell 2000 index, a benchmark for small-cap stocks, surged 1.7 percent, reflecting strong investor confidence in Thursday’s trading session.

Meanwhile, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 5,320.68 crore on Thursday, while Domestic Institutional Investors (DIIs) bought shares worth Rs 4,200.16 crore. Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, however noted, "the relentless selling by FIIs continues with the selling spree reaching a record continuous 37 days. But the market has corrected only by about 11% from the September peak. This is a correction, not a crash. The mother market US is bullish with 25.43% return YTD. These factors suggest that the undertone of this market is positive."

4) Recovery in Adani Stocks: Shares of Adani group companies turned green today after major losses in Thursday's trade after billionaire Gautam Adani was charged by US prosecutors for allegedly being part of a scheme to pay Rs 2,200 crore bribe to Indian officials in exchange for favourable terms for solar power contracts. Adani Enterprises, the flagship company of the group, initially fell by 7 percent but later trimmed its losses, to traded at Rs 2,283.45, up 4.57 percent.

"Markets trajectory is unlikely to be influenced heavily by Adani group stocks since there are only two of them in the benchmark Nifty 50, with not much weightage as well," Siddhartha Khemka, head of research of wealth management at Motilal Oswal Financial Services told Reuters. "While there is a rise in benchmarks on the day, led by financials' rebound, a sustained recovery requires reversal of foreign outflows and improvement in earnings."

5) China markets trade lower: Gains in the domestic markets in India could also be partially attributed to a reverse trade dynamic sparked by sell-offs in Chinese stocks. The Shanghai Composite plunged over 3 percent and the Hang Seng Index declined nearly 2 percent.

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