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Indian Stocks Surge on Diwali as Earnings, Central Bank Decisions Loom
20 Oct
Summary
- Indian equity benchmarks Nifty50 and Sensex soar on Diwali
- Positive corporate results and global central bank policies to influence market direction
- Short-covering and improved earnings growth boost investor confidence
As of October 21st, 2025, the Indian equity markets have seen a significant surge, with the benchmark indices Nifty50 and BSE Sensex soaring on the auspicious occasion of Diwali. The Nifty50 went above 25,900, while the Sensex was up over 600 points, indicating a strong bullish sentiment in the market.
According to market experts, the direction of Indian stocks going forward will be heavily influenced by the current corporate results and the policy decisions from key global central banks. Additionally, the ongoing India-US trade deal talks are also expected to impact investor sentiment. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted that the market's momentum, triggered by sustained buying from domestic institutional investors and marginal foreign inflows, is set to continue with more positive news. The early Q2 results have indicated a sharp recovery in earnings, with the performance of HDFC Bank and Reliance Industries being particularly impressive.
The short-covering in the last few days is likely to continue, pushing the large-cap stocks higher. The market is on track to set new highs soon, and sectors with tailwinds of growth are expected to outperform. The positive sentiment in the market has also been bolstered by the news of brisk festival season sales of automobiles and white goods, further strengthening the case for a sustained bullish run.
