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Diwali 2025: Know Why BSE and NSE Gained Nearly 4% in Oct 2025, Highest in 4 Months

Written by: Aayushi ChaubeyUpdated on: 17 Oct 2025, 3:24 pm IST
India’s market capitalisation nears a record high as foreign inflows, strong earnings outlook, and lower crude prices lift sentiment.
BSE and NSE Gained Nearly 4% before diwali 2025
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The total market capitalisation of India’s listed companies has moved closer to its one-year high, supported by renewed foreign investor interest, hopes of an early India–US trade deal, and improving corporate earnings. A steady fall in crude oil prices has also helped strengthen overall market sentiment.

Market Cap of BSE-Listed Firms Crosses ₹467 Lakh 

The combined market value of all companies listed on the BSE has crossed ₹467 lakh crore, a level last seen on October 1, 2024. This is now just about 2.3% below the record high reached on September 27 last year.

Since the beginning of October, investors have added nearly ₹16 lakh crore in market value. Both benchmark indices, the Sensex and Nifty, have gained about 3.6% this month, reaching their highest levels in almost four months.

Why Did Market Capitalisation Rise Sharply Before Diwali 2025?

The market rally has been broad-based, with large-, mid-, and small-cap stocks moving up together. The BSE MidCap index rose 3.66%, while the SmallCap index advanced 2.1% during the period.

Sector-wise, the uptrend was led by realty, IT, and banking stocks. The Nifty Realty index jumped 7%, while Nifty Bank and Nifty IT gained 5.1% each. Other sectors such as pharma and metal also participated, rising 3% and 2.5% respectively.

Global Cues and Trade Optimism Lift Sentiment

Investor confidence has been further supported by expectations of interest rate cuts from both the US Federal Reserve and the Reserve Bank of India. Optimism around India–US trade talks, especially in areas like energy cooperation, has also contributed to the positive tone in the markets.

In the last eight trading sessions, foreign institutional investors (FIIs) have been net buyers in six sessions, investing over ₹4,000 crore, while domestic institutional investors (DIIs) have added more than ₹18,000 crore.

Read more: Dividend Stocks: HCL Tech, Anand Rathi, Rolex Rings Among 7 Stocks Going Ex-Date Today, October 17, 2025.

Conclusion

India’s equity market has seen a strong comeback ahead of the festive season, backed by foreign inflows, lower oil prices, and positive global cues. However, experts suggest that investors should remain cautious, as profit booking and heavy short positions could keep the markets volatile in the near term.  
 
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Published on: Oct 17, 2025, 9:52 AM IST

Aayushi Chaubey

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