Sensex surges over 1,500 points, Nifty nears 23,000 as IT and financial stocks lead strong rally
The significant market gains on Thursday were driven by easing crude oil prices and robust domestic institutional buying, despite cautious global sentiment.
The story
Indian equity benchmarks staged a sharp recovery on Thursday, October 15, with the Sensex surging 1,533.72 points, or 2.11%, to settle at 74,315.61. The Nifty 50 also advanced 374.65 points, or 1.66%, to close at 22,997.35.
This marked the biggest single-day gain for the Sensex in four months. The rally was broadly led by information technology, private banking, automobile, and oil & gas sectors.
Tech Mahindra, ICICI Bank, and Reliance Industries were among the top gainers on the Nifty 50. Declining crude oil prices eased concerns over imported inflation and supported market sentiment.
Domestically, Domestic Institutional Investors (DIIs) provided strong support, buying equities worth ₹3,319.39 crore. However, Foreign Institutional Investors (FIIs) remained net sellers for the 15th consecutive session, with outflows of ₹5,285.37 crore. Globally, Indian markets defied pressure from hotter-than-expected US inflation data and a sharp sell-off in some Asian tech shares.
The tape
| Instrument | Last | Change |
|---|---|---|
| Nifty 50 | 22,997.35 | +374.65 (+1.66%) |
| Sensex | 74,315.61 | +1,533.72 (+2.11%) |
| USD/INR | 95.05 | |
| India VIX | 14.02 | -4.17% |
Flows & data
| Item | Reading | Read |
|---|---|---|
| FII Net Flows (Cash) | ₹-5,285.37 Cr (Oct 15, 2026) | Foreign Institutional Investors remained net sellers for the 15th consecutive session. |
| DII Net Flows (Cash) | ₹+3,319.39 Cr (Oct 15, 2026) | Domestic Institutional Investors provided significant buying support. |
IPOs & the primary market
India's primary market saw continued activity this week, with several IPOs opening for subscription. Fusion CX, a mainboard IPO in the IT services sector, and Ravita Engineering Services, an SME IPO, both opened on October 14 and closed today, October 16.
Additionally, mainboard IPOs for Zetwerk, Tonbo Imaging India, Sahajanand Medical Technologies, Bonfiglioli Transmissions, and SME IPO Shellz India opened on October 15, with subscriptions running until October 19. Grey Market Premiums (GMPs) on October 15 indicated strong investor interest in some upcoming issues, with Tonbo Imaging India showing a GMP of ₹500 (71.43%) and Jio Platforms at ₹206 (18.40%).
Looking ahead, the much-anticipated Jio Platforms IPO is scheduled to open from October 21-23, with a price band of ₹1,065–₹1,119 per share. Paras Healthcare IPO is also slated to open during the same period.
Valuation watch — India & global
India's equity valuations continue to be a focal point, with the Nifty 50 trading at a trailing P/E ratio of 21.19 as of September 2026, down from 22.81 a year ago. The forward P/E stands at 18.68, reflecting analyst expectations of a 13% rise in earnings over the next twelve months.
The CAPE ratio for the Nifty 50 was 28.67 in September 2026. While domestic fundamentals like GDP growth and SIP flows remain strong, global factors continue to influence sentiment.
Concerns over elevated US Treasury yields, crude oil prices, and persistent foreign institutional outflows are key overhangs. Globally, discussions around an 'AI bubble' and financing worries impacting US tech stocks, such as CoreWeave and Oracle, suggest pockets of froth. Despite some market volatility, well-priced, quality businesses in the primary market are still attracting robust demand.
What we'll be watching
- US industrial-production data is due at 6:45 PM IST on October 16.
- Jio Platforms IPO opens for subscription on October 21.
- Paras Healthcare IPO opens for subscription on October 21.
- The US Federal Reserve's next meeting is scheduled for October 28.
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