The Indian stock market posted solid gains for the second straight session on Thursday, October 16, as global optimism lifted sentiment. The Sensex jumped over 960 points, or 1.2%, to touch an intraday high of 83,572, while the Nifty 50 rose by a similar margin to 25,622. Over the past two days, the Sensex has climbed more than 1,500 points, or nearly 2%, despite lingering concerns over US tariffs and high valuations.
Analysts attribute the rally to several factors — stable Q2 earnings that met expectations, a stronger rupee, renewed foreign investor buying, and supportive macroeconomic conditions. The rupee’s rebound of over 1% against the dollar has boosted confidence, aided by hopes of an India–US trade deal and possible US rate cuts. Meanwhile, foreign institutional investors have resumed buying after weeks of outflows. Additionally, lower inflation and the IMF’s upgraded growth forecast of 6.6% for FY26 have strengthened expectations of RBI rate cuts. Experts believe improved valuations, policy support, and easing rates will drive the next phase of earnings-led market growth.
