Mumbai, October 23, 2025:
The festival of lights turned into a festival of gains for Indian investors as the Sensex and Nifty touched all-time highs during the special Diwali Muhurat trading session on Thursday. With festive optimism, strong corporate earnings, and renewed foreign inflows, Dalal Street witnessed an electrifying atmosphere as market participants celebrated prosperity and confidence in India’s economic growth.
The BSE Sensex surged over 750 points to close above 84,000, while the NSE Nifty 50 breached the 25,000 mark for the first time ever. Analysts said this rally reflects both festive sentiment and robust macroeconomic fundamentals.
“Diwali trading is always symbolic, but this year it represents India’s confidence in its growth story,” said Anand Rathi, Chairman of Anand Rathi Financial Services. “The market’s energy is infectious — we are seeing optimism from retail and institutional investors alike.”
🌟 Festive Trading Brings Record Momentum
The traditional Muhurat trading, held every Diwali evening, lasted one hour and saw unprecedented participation from investors across the country. Brokerage firms reported a 25% rise in trading volume compared to 2024’s session.
Blue-chip stocks led the rally, with Reliance Industries, HDFC Bank, Infosys, and Tata Motors hitting fresh 52-week highs. The Nifty Bank index climbed nearly 2%, while small-cap and mid-cap indices also recorded strong gains.
The bullish sentiment was driven by optimism over India’s GDP growth projections, expected to remain above 7.5% for FY26, and strong quarterly earnings across banking, IT, and manufacturing sectors.
“India continues to be the world’s fastest-growing major economy. Global investors are clearly taking note,” said Ruchir Sharma, global investor and author. “We are entering an era where domestic consumption and manufacturing will drive sustained market expansion.”
💰 Foreign Investors Return
The festive cheer was amplified by the return of Foreign Institutional Investors (FIIs), who pumped in nearly ₹8,500 crore in the week leading up to Diwali. After months of volatility, the renewed inflow signaled fresh global confidence in Indian equities, particularly in the automobile and infrastructure sectors.
According to NSE data, over 65% of total trades during Muhurat hours came from retail investors, many of whom viewed Diwali as an auspicious time to begin or expand their portfolios.
“It’s a great start to the new Samvat year,” said Meera Shah, senior market analyst at Kotak Securities. “Investors are optimistic about reforms, strong government capex, and continued global interest in Indian manufacturing.”
🪔 Symbolism and Sentiment
In Indian culture, the Muhurat trading session marks a new financial year known as Samvat 2082 in the Hindu calendar. Traders and brokers begin the evening with Laxmi Puja, seeking blessings of the Goddess of wealth for prosperity and growth.
Stock exchanges in Mumbai, Delhi, and Ahmedabad were decorated with lamps and rangolis, and investors exchanged sweets while closing symbolic trades to mark the auspicious occasion.
“Diwali is more than just a trading session — it’s a celebration of faith, fortune, and India’s financial resilience,” said Nirmala Joshi, a veteran broker from Dalal Street.
📊 Expert Outlook: More Gains Ahead?
Market experts predict continued bullish momentum in the coming months, backed by strong macroeconomic indicators, falling inflation, and rising corporate profits. However, they also cautioned investors to remain selective and mindful of global headwinds such as oil prices and U.S. interest rate policies.
Analysts from ICICI Securities forecast the Sensex to touch 86,000 by early 2026, while Morgan Stanley upgraded India’s market outlook from “neutral” to “overweight,” citing resilience in the domestic economy and corporate balance sheets.
“The Diwali rally is not just symbolic—it reflects deep structural confidence,” said Sonal Varma, Chief Economist at Nomura. “India’s growth story is intact, and the market will continue to shine.”
🎇 Conclusion: The Spirit of Prosperity
As the lamps of Diwali illuminate homes across India, Dalal Street too glows with optimism. Investors believe the new Samvat year will bring fortune and stability amid global uncertainties.
For now, one thing is clear — the festival of lights has once again proven lucky for the Indian markets, setting a dazzling tone for the year ahead.
