The Indian stock market celebrated Diwali with gains as the SENSEX and NIFTY50 indices closed at fresh 52-week highs during the special Muhurat trading session on October 21, 2025. The SENSEX rose by 302 points to a peak of 84,665, while the NIFTY50 surged to 25,934.35, marking a strong performance led by large-cap banking and industrial stocks. Over the past five sessions, the SENSEX gained 2.92%, and the NIFTY50 climbed 2.88%, reflecting a positive market sentiment during the festival period.
In detail, the NIFTY50 index saw 24 stocks advance against 25 that closed lower. Cipla emerged as the top gainer, rising 1.58% to ₹1,665, followed by Bajaj Finserv (1.18%), Infosys (0.7%), JSW Steel (0.68%), and Grasim (0.67%). Conversely, Kotak Mahindra Bank was the top loser, declining 0.98% to ₹2,192. Other laggards included ICICI Bank (-0.65%), Asian Paints (-0.64%), Ultratech Cement (-0.61%), and HCL Technologies (-0.6%).
The NIFTY Midcap 100 index also showed modest gains of 0.11%, with 48 stocks rising and 51 declining. Swiggy led the gainers with a 2.69% jump to ₹433, buoyed by expectations of increased orders during Diwali. ITC Hotels (2.43%), Suzlon (2.03%), Indus Towers (1.55%), and M&M Financial Services (1.4%) also gained. However, Muthoot Finance (-1.45%), SRF (-1.2%), Bharat Forge (-1%), Polycab (-0.97%), and 360 One Wam (-0.95%) were among the losers.
Notably, the NIFTY Smallcap 100 index outperformed larger indices, rising 0.52% to 18,300.65, with 76 shares gaining and 24 losing ground. Nuvama Wealth Management was the top gainer, up 3.28% to ₹7,250, followed by Jindal SAW (2.47%), Wockhardt (2.39%), Data Patterns (2.11%), and Triveni Turbine (2.10%). On the downside, Ola Electric fell 2.75% to ₹53 due to reports of a legal case of abetment to suicide against its CEO Bhavish Aggarwal and a senior company officer in Bengaluru. Other laggards included Neuland Labs (-1.42%), MRPL (-1.07%), Anand Rathi Wealth (-0.85%), and NBCC (-0.78%).
Consequences and Market Implications
The strong market rally during Muhurat trading reflects investor optimism at the start of the festive season, traditionally considered an auspicious time to invest in equities. The solid performance of large-cap banking and industrial stocks suggests confidence in economic recovery and corporate earnings growth. Midcap and smallcap segments showing positive trends indicate broader market participation beyond blue-chips, which is a healthy sign for market breadth.
However, the negative impact on Ola Electric highlights that company-specific news, especially legal troubles, can weigh heavily on stock prices, regardless of overall market sentiment. Investors may remain cautious about such stocks until clarity emerges on these legal matters.
Overall, the Diwali session gains provide a positive momentum for investors entering the last quarter of the year, often a period of increased market activity in India. The market's ability to close near 52-week highs could attract fresh capital inflows, sustaining rally potential in the near term.
This special trading session showcased strong resilience and optimism across different market segments, reinforcing the role of festival periods as catalysts for equity market enthusiasm in India. Investors are advised to monitor both macroeconomic developments and corporate-specific news closely to navigate the evolving market dynamics effectively.