Indian stock markets experienced a significant boost on Monday, reflecting festive optimism ahead of Diwali. The S&P BSE Sensex surged by 673.90 points to reach 84,626.09, while the NSE Nifty 50 climbed 202.50 points to settle at 25,912.35. This positive momentum was largely driven by strong quarterly results from major companies like Reliance Industries and HDFC Bank, which bolstered investor confidence.

Reliance Industries saw its stock rise nearly 3% following impressive earnings, supported by growth in its retail and telecom sectors. HDFC Bank also reported improved asset quality and a healthy increase in net profit, reinforcing the strength of the banking sector during the festive season.

Market analysts noted that the festive period has led to robust consumer spending across various sectors, including automobiles and white goods. Ajay Bagga, a banking and market expert, mentioned, "Today could see a surge followed by profit booking in the afternoon, as positions are adjusted ahead of the truncated week."

The Nifty 50 index opened at 25,824.60, up 114.75 points or 0.45%, while the Sensex started at 84,267.59, rising 315.40 points or 0.38%. The markets are set for a special Muhurat trading session on Tuesday, October 21, from 1:45 pm to 2:45 pm, before closing for regular trading on Wednesday.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted that the market's momentum is supported by sustained domestic institutional investor (DII) buying and marginal foreign institutional investor (FII) buying. He stated, "The market is on track to set new highs soon," as the concerns over poor earnings growth are being addressed.

As the festive season continues, analysts expect sectors like banking, automobiles, and energy to outperform, with the potential for Indian equities to reach new all-time highs in the coming weeks. The overall sentiment in the markets remains positive, with global factors also contributing to the bullish outlook.

In summary, the Indian stock markets are riding a wave of festive cheer, with strong corporate earnings and consumer spending driving investor confidence as they approach the Muhurat trading session.