Mumbai: Indian equity markets are likely to open on a strong note on Monday (October 20, 2025), buoyed by robust earnings from heavyweights HDFC Bank, ICICI Bank, and Reliance Industries. The upbeat results from top corporates have bolstered investor sentiment ahead of the festive season, signalling a potential continuation of the market’s upward momentum.

At 7:10 a.m., the GIFT Nifty index was quoting 25,977.5, up 222 points or 0.9 per cent, indicating a sharp gap-up opening for the benchmark indices.

Festive optimism lifts market mood

The festive fervour appears to have infected Dalal Street’s bulls, as both the Sensex and Nifty 50 have surged over 2 per cent in the past three sessions. Market participants expect the rally to extend further, supported by strong earnings, steady domestic inflows, and resilient macroeconomic conditions.

The Bank Nifty index will remain in focus after it hit a lifetime high of 57,830 in the previous session before closing at 57,713. Analysts said the banking pack continues to lead the rally, aided by robust financial results and stable credit growth trends.

Positive global cues aid sentiment

Globally, the market mood turned positive after easing trade tensions between the United States and China. On Friday, Wall Street’s major indices closed higher — the Dow Jones Industrial Average rose 0.52 per cent, the S&P 500 gained 0.53 per cent, and the Nasdaq Composite added 0.52 per cent.

Asian markets opened higher on Monday, following two consecutive weeks of losses. The improved sentiment across global equities is expected to lend support to Indian markets at the start of the trading week.

Analysts see continued uptrend

“The Nifty 50 has firmly held above its breakout zone at 25,700, confirming continuation of the uptrend,” said Ponmudi R, CEO of Enrich Money. “Immediate resistance lies in the 25,900–26,300 band, and a decisive close above this could trigger the next leg higher toward 26,500–27,000. On the downside, support is seen around 25,600–25,450, marking a crucial demand zone.”

For the Bank Nifty, analysts see immediate resistance near 58,000–58,500, with a potential breakout paving the way toward 59,000–60,000 levels.

Sectoral outlook and trading strategy

Experts continue to favour a buy-on-dips strategy in quality large-cap stocks, especially in banking, automobile, and consumption-driven sectors, which are expected to benefit from festive demand and strong domestic liquidity.

However, caution is advised in metals and export-oriented counters, as the slowdown in China’s industrial activity could weigh on near-term performance.

Market view: constructive sentiment persists

Overall, the tone across Indian equities remains constructive, supported by strong local inflows, stable inflation trends, and improving corporate earnings. India continues to stand out among global markets, offering both liquidity resilience and directional clarity.

“The ongoing festive season, coupled with consistent FPI inflows and domestic institutional buying, is likely to keep the momentum alive,” said a senior market strategist. “Investors should stay positioned in high-quality names with earnings visibility as the market looks set to scale new highs.”