NIFTY50 crosses 25,000, SENSEX jumps 600 points; here are top four factors for today's rally

Indian benchmark indices continued to hold strong momentum for the third consecutive session on Monday. The NIFTY50 and SENSEX crossed the psychological resistance of 25,000 and 81,000 in the mid-market session. The gains were led by banking, IT and consumption stocks. In addition, the index heavyweights like HDFC Bank, Reliance, Infosys and Axis Bank were the top index movers on Monday afternoon.

The NIFTY50 traded at 25010.65, up by 116.40 points or 0.47% after trading in a range of 24881.65 and 25016.55. 26 stocks were advancing against 24 stocks declining on the index.

The top gainers on Nifty were Max Healthcare Inst up by 4.90%, Shriram Finance up by 3.82%, Bajaj Finance up by 2.73%, Apollo Hospital up by 2.53% and Kotak Mahindra Bank up by 2.10%. On the flip side, Tata Steel down by 1.75%, Power Grid down by 1.42%, Adani Ports down by 1.35%, NTPC down by 1.23% and Tata Motors down by 1.21% were the top losers.

Meanwhile, SENSEX traded at 81602.81, up by 395.64 points or 0.49% after trading in a range of 81155.88 and 81637.53. 18 stocks were advancing against 12 stocks declining on the index.

The top factors that led to today’s rally

Bounce back in IT stocks

Shares of key large-cap and mid-cap IT names are buzzing in Friday’s trade ahead of the crucial Q2FY6 earnings season. Shares of LTIMindtree (+2.6%) and Persistent (+2.6%), Tata Consultancy Services (+2.3%), Infosys (+1.2%), HCL Technologies (+1.9%), Tech Mahindra (+2.4%) and Wipro (+0.5%) are among the top gainers in the index. Tata Consultancy Services will kickstart the Q2FY26 earnings season for the sector on 9th October 2025. Market experts believe, today’s rally in the IT stocks is primarily due to buoyancy among investors for IT stocks.

Bank and Financials soar on strong updates

Shares of HDFC Bank, Kotak Mahindra Bank, Axis Bank, Bajaj Finance, and Shriram Finance were among the top index movers on Monday, owing to their strong quarterly business updates. HDFC Bank on Saturday said it has registered a 9% rise in loans to ₹27.9 lakh crore, while Kotak Mahindra Bank reported a credit growth of 15.8% to ₹4.62 lakh crore. Bajaj Finance added that the assets under management (AUM) grew by 24% to approximately ₹4,62,250 crore.

Positive global cues

As Indian markets are catching up with the pace of global markets, the world indices are marching ahead to new record highs despite an uncertain environment. The Japanese benchmark, Nikkei 225 index, soared nearly 5% hitting record highs on Monday, after the ruling party's vote paved the way for fiscal dove and pro-stimulus lawmaker Sanae Takaichi to become Japan’s next prime minister.

Strong technical setup

The NIFTY50 closed nearly medium-term average level of 50 EMA on Friday, indicating renewed momentum in the index. The Monday’s rally above the short-term 20 EMA level of 24,914 indicates sustained momentum in the index.

The seasonally adjusted HSBC India Services PMI Business Activity Index fell to 60.9 in September, from a 15-year high of 62.9 in August, amid competitive conditions and cost-control measures. On the global front, Asian markets were trading mostly in green despite the private sector in Hong Kong continuing to expand in September, albeit at a slower pace, the latest survey from S&P Global revealed, with a PMI score of 50.4.