Market Overview The GIFT Nifty closed 0.57 percent higher at 25,257 on Tuesday, the first trading day after the Diwali Balipratipada holiday. The benchmark Sensex also finished in the green, up 0.13 percent to 81,106.65. Both indices reached their highest levels since 27 February 2026.
Drivers of the Rally The rally was underpinned by a sharp decline in crude oil prices, with Brent futures trading below $100 a barrel – the lowest level since early September. Investors linked the dip to potential diplomatic talks between the United States and Iran, which has reduced geopolitical risk.
Foreign capital inflows also played a significant role. The market has seen a 10.5 percent rise over the last seven sessions, marking the longest winning streak this year. Analysts note that the unwind of the global artificial‑intelligence trade has further lifted sentiment.
Global Context While Indian markets gained, U.S. stock futures were mixed ahead of the October inflation release. Nasdaq futures fell 0.14 percent, whereas the S&P 500 and Dow Jones futures gained 0.11 percent and 0.30 percent respectively. Asian markets also advanced, with South Korea’s KOSPI up more than 5 percent and Japan’s Nikkei rising about 3 percent.
Nvidia remains a focal point for investors. After the company’s board announced an investigation into a possible foreign‑intelligence operation involving CEO Jensen Huang, the stock recovered over 1 percent in pre‑market trading following an 8 percent drop the previous day.
Analyst Outlook Citi has raised its end‑2027 Nifty target to 28,000, implying a potential upside of roughly 12 percent from today’s close. HSBC upgraded its rating on Indian equities to “overweight” from “neutral”.
Pabitro Mukherjee, Deputy Vice President of Research at Bajaj Broking, cautioned that a brief consolidation could occur at higher levels, and that stock‑specific action will remain in focus during the earnings season.
What to Watch * **U.S. inflation data** for October is expected later today and could influence the Federal Reserve’s next policy meeting. * **Earnings season** will be a key market trigger, with many companies reporting results in the coming weeks. * **Geopolitical developments** around Iran and the U.S. may continue to affect oil prices and risk sentiment.
The market is poised for a cautious yet optimistic opening on Wednesday, with investors keeping a close eye on both domestic earnings and global macro‑economic indicators.