Today’s Stock Market Closing, 16 Oct: Nifty and Sensex Surge Over 1%: Here Are the 3 Key Reasons Why Markets Rally

On Thursday, October 16, Indian equity benchmark indices ended 1% higher, extending gains for the 2nd consecutive session. The Nifty 50 index touched its highest level since June 30. The Nifty 50 registered its sharpest single-day move in almost four months, i.e., since June 26.

At the close, the Nifty 50 advanced 261.75 points, or 1.03%, to settle at 25,585.30, while the Sensex jumped by 862.23 points, or 1.04%, ending at 83,467.66, in a broad-based rally led by private banks after Axis Bank's quarterly results. India’s fear index, India VIX, jumped over 3% during the day. 

Key Catalysts Behind the October 16 Market Rally

Dovish comments from Fed Chair Jerome Powell – He reinforced expectations of an October rate cut and hinted at a possible pause in the balance sheet runoff.

Fading trade war fears – Investor sentiment improved as concerns over the trade conflict between US and India eased after US President Donald Trump said Indian Prime Minister Narendra Modi had assured him that India would halt purchases of Russian oil.

Weakness in crude oil prices – WTI crude oil futures remained depressed near a five-month low, as investors weighed escalating U.S.-China tensions and a bearish outlook from the International Energy Agency.

On the sectoral front, 10 out of 11 sectors closed in positive territory. Domestic rate-sensitive sectors such as Nifty Auto, Nifty Realty rose 1.27% and 1.9%, respectively. 

Nifty IT index surged by 0.37% as index constituent, Infosys, the country's No. 2 software services provider, declined 0.2% ahead of its quarterly results due post-market hours on Thursday.

Meanwhile, broader markets relatively underperformed frontline indices; both the Nifty Midcap and Nifty Smallcap indices closed on a positive note.

Stock-Specific Highlights

Among individual stocks,

• Ola Electric Mobility share price jumps 5% and is locked in the upper circuit after launching its first battery energy storage system (BESS).
• Axis Bank share price gains 2.28% despite posting a drop in the September quarter profit, but improved operating performance and asset quality.
• HDFC Life Insurance share price drops 2.40% on margin pressure due to goods and services tax (GST) cut impact.
• Mangalore Refinery and Petrochemicals share price jumped over 1% after posting a quarterly profit from a loss a year ago.
• Realty developer Oberoi Realty share price jumped over 5% after reporting a 29% rise in the second-quarter profit.
• Packaging solutions provider Huhtamaki India surged 12% after logging a two-fold increase in quarterly profit.

Nifty FMCG - Top Gaining Sector

The Nifty FMCG index surged by 2.02%, recording the biggest intraday gains since May 12. On the flip side, the Nifty PSU Bank index declined by 0.44% after hitting a new 52-week high.

Nifty 50: Top Pullers and Draggers of the Day

The key drivers of the index gains were:

• HDFC Bank: +51.11 points
• Reliance Industries: +35.71 points
• ICICI Bank: +29.56 points 

On the other hand, these stocks weighed on the index:

• Eternal Industries: -21.02 points
• HDFC Life Insurance: -4.25 points
• Infosys: -2.75 points

Broader Markets End Positive

The broader market indices ended on a positive note on Thursday. The Mid-cap 100 index ended up by 0.46% and the Small-cap 100 closed up by 0.24%. 

Market Breadth

As of October 16, 2025, the market breadth was in favour of advancing stocks. Out of 3,192 stocks traded on the NSE,1,814 advanced, 1,280 declined, and 98 remained unchanged. 

A total of 84 stocks touched their 52-week highs, while 64 hit their 52-week lows. Additionally, 90 stocks were locked in their upper circuits, whereas 54 stocks were in lower circuits. 

Disclaimer: The article is for informational purposes only and not investment advice.