Wed Oct 22 08:40:00 UTC 2025: ## Indian Stocks Rise on Diwali, Optimism Fuels New Year

Mumbai, India – October 21, 2025 – The Indian stock market celebrated Diwali with gains during a special trading session today, marking a positive start to Samvat 2082. The rally, driven by optimism surrounding corporate earnings and potential de-escalation of trade tensions between the U.S. and China, extended the market’s five-day winning streak.

The Nifty 50 index climbed 0.1% to close at 25,868.6, while the Sensex rose 0.07% to settle at 84,426.34. Both indices reached their highest closing levels since September 2024.

Trading will be closed tomorrow, October 22nd, in observance of Diwali Balipratipada. This is one of three stock market holidays this month, the others being October 2nd (Mahatma Gandhi Jayanti/Dussehra) and today’s Diwali Laxmi Pujan.

Looking ahead, the 2025 stock market calendar lists 18 trading holidays, including single-day closures in November (November 5th for Prakash Gurpurb Sri Guru Nanak Dev) and December (Christmas).

Today’s positive performance comes after a year of modest gains for the Nifty 50 in Samvat 2081, which saw a 6% rise despite geopolitical uncertainties, US tariffs, and slower earnings growth.

“The key takeaway from Samvat 2081 is India’s underperformance,” explained VK Vijayakumar, Chief Investment Strategist at Geojit Investments. He attributed the slower growth to a decline in India’s earnings growth.

However, expectations are high for Samvat 2082, with predictions of improved earnings fueled by income tax relief, GST reforms, a strong monsoon, and easing geopolitical concerns. Vijayakumar expects earnings growth could reach 8-10% in FY26 and potentially accelerate to 15% in FY27.

“If this expectation materialises, the market will rally in Samvat 2082, compensating for the underperformance of Samvat 2081,” Vijayakumar added. He also noted a possible India-US trade deal could provide a short-term boost, but long-term growth will depend on sustained earnings improvements.

Disclaimer: This article is for informational purposes only and should not be considered investment advice. Consult with a certified financial advisor before making any investment decisions.

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