The Indian stock market continued its winning spree for the fourth consecutive session on Tuesday, supported by a good showing in the banking, financial, and realty sectors. Positive pre-earnings signals and expectations surrounding the Reserve Bank of India’s (RBI) recent lending reforms continued to support bullish sentiment on Dalal Street.
The BSE Sensex appreciated by 136.63 points (0.17%) to close at 81,926.75, and the NSE Nifty 50 gained 30.65 points (0.12%) to close at 25,108.30. The broader markets also participated in the rally, with both the mid-cap and small-cap indices gaining around 0.3%–0.5%.
Financial Stocks Drive Market Momentum
The ongoing rally was largely driven by financial heavyweights, as investors responded positively to the RBI’s decision to simplify certain lending norms and boost liquidity. Stocks like HDFC Bank, ICICI Bank, and Bajaj Finance led the charge, reflecting strong confidence ahead of the upcoming quarterly results.
According to analysts, upbeat pre-earnings updates from major lenders helped reinforce the perception that India’s credit growth cycle remains robust despite global uncertainties. “The RBI’s recent reforms have added fuel to the financial sector rally, with lending and credit expansion expected to accelerate in the coming quarters,” said a market strategist at Kotak Securities.
Sector-Wise Performance Remains Broad-Based
Sector-wise, banking, financial services, oil & gas, pharma, and realty stocks picked up the most during the day. The Nifty Bank index rose almost 0.5%, and Nifty Realty gained almost 1%. Consumer durables and healthcare sectors also witnessed renewed investor interest.
On the other hand, IT and FMCG shares continued to be under pressure because of poor export figures and prudent foreign cues. Experts said the recent rupee volatility and the increase in U.S. Treasury yields have kept the IT sector out of favor for the moment.
Foreign Investors Continue to Be Net Sellers
In spite of the domestic strength of the market, foreign portfolio investors (FPIs) still continue to reduce exposure. According to Reuters data, foreign investors pulled out approximately $2.7 billion from Indian equities in September 2025, which was the third straight month of outflows.
Cumulatively, the FPIs have withdrawn close to $17.6 billion from Indian equities this year on account of global risk aversion, high oil prices, and better returns available from the U.S. debt market. Local investors, according to analysts, have nevertheless been able to mitigate the effect.
“Domestic institutional and retail buyers are exhibiting very strong buying conviction that is supporting the markets even with continued FPI selling,” said Rajesh Agrawal, head of research at AUM Capital.
IPO Season to Drive Market Activity
Adding to the positive mood, India’s main market is set for a blockbuster year-end initial public offering rush, likely to mobilize up to $8 billion by the end of 2025. Tata Capital and LG Electronics India are among the most promising contenders in the list of upcoming listings.
In a resounding indicator of investor demand, LG Electronics India’s IPO was subscribed in full within hours of its listing earlier today. Experts interpret it as an indicator of India’s healthy domestic liquidity and the retail participation boom continuing.
“LG’s IPO success proves how optimistic investors are about India’s growth narrative,” commented a senior fund manager at Mirae Asset, which just included Paytm in its top picks for October on the grounds of its strengthening fundamentals in the digital payments space.
Technical Outlook: Nifty May Eye 25,500 Next
Market analysts predict that if the Nifty holds above the 25,000–25,020 level, it may aim for 25,500 in the short term. Support would be around 24,800 and resistance around 25,300–25,500.
Conclusion
With domestic ground conditions still healthy, rupee-friendly RBI actions, and a positive IPO pipeline, the Indian equity market appears poised for stable performance in the run-up to the last quarter of 2025. That said, global pressures, FPI redemptions, and profit-taking may put investor nerves to the test in the near term.
