Mumbai, Oct 16 (IANS) The Indian stock market extended its winning streak on Thursday, with both Sensex and Nifty closing higher for the second straight session.  The gains came amid strong buying in select stocks during the ongoing second-quarter (Q2) earnings season. At the close of trade, the Sensex jumped 862.23 points, or 1.04 per cent, to settle at 83,467.66. The Nifty also advanced 261.75 points, or 1.03 per cent, to end the day at 25,585.3. "The bulls remained in control for the second straight session as Nifty crossed the psychological hurdle of 25,500,” experts said.

“The index also broke out above a major falling trend line that connects all key tops since the previous record high of 26,277, indicating the potential for further upside in the coming sessions,” they added. Analysts added that overall, the trend remains positive, with Nifty likely to head towards 25,800–26,000 levels in the short term, while support has now shifted higher to around 25,420. Broader markets also finished on a positive note, with the Nifty MidCap 100 index rising 0.46 per cent and the Nifty SmallCap 100 gaining 0.24 per cent.

Except for Nifty PSU Bank, which slipped 0.44 per cent, all sectoral indices closed in the green. The Nifty FMCG and Realty indices led the rally, rising 2.02 per cent and 1.90 per cent, respectively. Among individual stocks, Titan, Kotak Mahindra Bank, and Axis Bank were the top gainers on the Sensex, while Infosys and Eternal were the only laggards. Market experts said the domestic markets extended their recovery on the back of positive global cues and optimism around ongoing India–US trade discussions. Gains were broad-based, led by buying in Realty, Auto, FMCG, and Private Banking stocks.

They added that investor sentiment was further boosted by expectations of a demand recovery in Q3FY26, early signs of foreign inflows, dovish signals from the US Federal Reserve, and a weaker dollar index. The recent appreciation of the Indian rupee also supported the positive market tone. Analysts believe that while near-term momentum remains strong, the market’s sustained performance will depend on corporate earnings growth and key developments in global trade.