The Indian equity benchmarks continued their upward trajectory on Thursday, buoyed by strength in Reliance Industries and key banking stocks, as well as encouraging Asian market trends and evolving global cues.

By around 11:40 a.m. IST, the BSE Sensex was trading approximately 300 points higher, settling near 82,146, while the NSE Nifty hovered slightly above 25,120. This extended the ongoing market rally into its sixth consecutive day, underlining sustained resilience in Indian equities despite mixed signals from global markets.

Among the prominent gainers were Dr. Reddy’s Laboratories, Cipla, Reliance Industries, ICICI Bank, and Larsen & Toubro, each climbing up to 2% intraday. Banking stocks, in particular, saw broad-based support, with nine of the dozen Bank Nifty constituents trading in positive territory.

Key Drivers Behind the Market Momentum

Reliance and financials lead the charge: Reliance Industries rose by over 1%, propelling gains in the broader oil & gas index. Financials also outperformed, gaining around 0.5%, driven by optimism over a proposal to exempt health and life insurance premiums from taxes—a move that boosted sentiment in insurance stocks. Banking names like ICICI Bank and HDFC Bank added weight to the rally, giving the sector an edge over others.

Firm regional cues: Markets in Asia put in a mixed-to-positive performance, with South Korea’s Kospi and the Shanghai Composite in the green. These gains helped cushion investor appetite in domestic markets, counterbalancing concerns over slower growth signals from the U.S.

Anticipation ahead of Fed: Investors are closely monitoring the U.S. Federal Reserve Chair’s remarks at the Jackson Hole symposium for signals on interest rate direction. The commentary is expected to shape expectations for the next phase of monetary policy, potentially impacting foreign fund inflows into emerging markets, including India.

Market dynamics and policy tailwinds: The rally has been underpinned by earlier momentum from proposed GST reforms and S&P’s recent sovereign credit upgrade for India. Small-cap and mid-cap indices also performed well, with select stocks like Jupiter Wagons surging on strong order wins and mid-tier banks gaining on expectations of robust quarterly earnings.

Rupee and volatility cues: The rupee appreciated 14 paise to 86.93 against the U.S. dollar, aided by strong domestic equities and improved risk appetite. Meanwhile, India’s volatility index slipped 1.3 percent to 11.63, reflecting lower near-term market uncertainty and encouraging steady institutional participation.

Market Outlook

On the technical front, the Nifty is trading close to its upper Bollinger band, suggesting the possibility of near-term consolidation. Analysts suggest that while a sharp decline is unlikely, a mild pullback toward the 25,000–24,980 levels could occur before the index attempts another upswing. On the upside, resistance is seen around 25,150–25,200, where profit-booking may cap immediate gains.

For the Sensex, immediate support lies near 81,850, while resistance is pegged around 82,400. If the index breaches the upper range decisively, further upside toward 82,700 cannot be ruled out. However, given the overbought conditions in several large-cap stocks, intermittent corrections may surface.

Market participants remain cautiously optimistic, with strong domestic liquidity and policy support seen as key buffers against global headwinds. Investors are expected to track upcoming global central bank signals, crude oil price movements, and foreign portfolio investment trends to gauge sustainability of the rally.