Festive cheer seems to be underway on Dalal Street as the benchmark indices rallied a whopping 2 per cent during just two trading sessions, with the Nifty 50 reclaiming the 23,000 mark on Friday. The positive momentum extended into the second day today even as the macro environment remains uncertain amid elevated crude oil prices at $117 a barrel, no end in sight to the US-Iran war, and weak global markets as AI trade worries resurface.
Building on a 905-point rise on Thursday, BSE barometer Sensex added another 308 points, or 0.42 per cent to 74,459, taking the two-day rise to 1,213 points. At the same time, its NSE counterpart Nifty 50 closed the day at 23,053, gaining 116 points or 0.51 per cent in intraday trade today.

During the two sessions, it has rallied 1.6 per cent. Check - TOP GAINERS NSE | TOP LOSERS NSE What's driving optimism on Dalal Street?1. Earnings optimism lifts sentimentThe earnings for the ongoing September quarter have been healthy even though cost pressures emerged.
Jefferies, in a recent note, said that the upgrade ratio is sustaining at 50 per cent plus for the ongoing quarter. Of the 105 companies the global investment bank analysed under its coverage universe, 56 per cent reported above-expectation performance.

Our FY27 MSCI India earnings estimates have been upgraded by 1 ppt to 15 per cent so far during the results season; though few heavyweights are yet to report, Jefferies said. 2. AI trade unwinding lifts IT heavyweightsAn encouraging Q2 performance and unwinding in global artificial intelligence (AI) trade buoyed investor sentiment in favour of traditional Indian IT services companies, pushing the index to its best monthly performance in six years following a 2 per cent rise in intraday deals.
As per a Business Standard analysis, Nifty IT is up 14.8 per cent so far in October and poised to see the biggest rise since July 2020. IT sector commands a significant weight in the benchmark Sensex and Nifty. Technical analysis signals strengthDevarsh Vakil, head of prime research at HDFC Securities, said Nifty finally broke out of the narrow 22,400–22,800 range that had capped price action over the past five sessions.

"The previous swing high and the 50-DEMA converge near 23,175, making that a key resistance zone. Support has shifted higher to 22,650; as long as the index holds above this level, traders should retain a positive bias," he added. Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited.
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