Sensex, Nifty rally for 7th straight day: 3 reasons behind D-Street's winning streak

The equity benchmark indices extended their winning streak to a seventh consecutive session on Friday , marking the first time in three years that benchmark indices have posted gains for seven straight trading days.The Nifty 50 reclaimed the 25,000 mark and closed at a nine-month high, while the Sensex surged 1,718 points, led by heavy buying in banking heavyweights and select stocks following quarterly earnings.The Sensex ended 1,718 points, or over 2%, higher at 81,028, while the Nifty 50 gained 494 points to settle at 25,030. The Nifty Bank index advanced 1,312 points to 59,086. However, the Nifty Midcap Index underperformed, slipping 14 points to close at 60,607.ALSO READ | Samvardhana Motherson shares are a buy or sell after 8% fall?

Here's what analysts saidHere are three key reasons behind Friday's market rally:1. Heavyweight banking stocks lead the rallyBuying in heavyweight stocks, particularly banking names, drove the benchmark indices higher. HDFC Bank, ICICI Bank and Axis Bank gained 3-4% each, supporting the broader market rally.The strength in banking heavyweights also helped the Nifty Bank index gain 1,312 points to close at 59,086.

Only five Nifty 50 stocks ended the session in the red, while several stocks gained as much as 5%.2. M&M leads Nifty gainers after strong Q2 internalsMahindra & Mahindra emerged as the top Nifty 50 gainer, supported by strong second-quarter earnings internals. Among other stocks, Yes Bank was one of the top midcap gainers, rising 6% on healthy trading volumes.

Precious metal stocks continued to attract buying interest, with Titan and Kalyan Jewellers gaining up to 5%.ALSO READ | NSE shares surge to a post-listing high, market capitalization crosses $50 billion3. Stock-specific Q2 concerns weigh on MidcapsDespite the strong rally in benchmark indices, midcap stocks remained relatively weak, with market breadth favouring declines. Astral plunged nearly 10% after its second-quarter growth disappointed.

Fortis Healthcare fell 6% after issuing a cautious margin outlook for FY27.Samvardhana Motherson declined over 5% despite reporting healthy second-quarter results. Tube Investments also closed lower, although the stock recovered from its day's lows, with its outlook remaining positive.The divergence between heavyweight stocks and the broader market was evident in the Nifty Midcap index, which ended 14 points lower at 60,607 even as the benchmark Nifty reclaimed 25,000.ALSO READ | Explained - Here's what triggered a 12% jump in Linde India sharesFrom the Sensex basket, Mahindra & Mahindra Ltd, ICICI Bank Ltd, Titan Company Ltd, Axis Bank Ltd, Tata Steel Ltd and NTPC Ltd were the major gainers. Hindustan Aeronautics Ltd, Power Grid Corporation of India Ltd, Shriram Finance Ltd, JSW Steel Ltd and Max Healthcare Institute Ltd were the biggest laggards.