India's stock markets extended their rally, with the S&P BSE Sensex and NSE Nifty 50 reaching all-time highs for the sixth consecutive session on 26 September, driven by strong performances in the automotive and banking sectors, state owned DD News reported.

The Sensex surged 666.25 points, or 0.78%, closing at 85,836.12, while the Nifty rose 211.80 points, or 0.81%, to 26,216. Despite the overall gains, market breadth was mixed, with 1,603 stocks advancing, 2,200 declining, and 102 remaining unchanged. Automakers Maruti Suzuki and Tata Motors, along with financial firms such as Shriram Finance, led the gains on the Nifty index. Shares of Grasim Industries and Mahindra & Mahindra (M&M) also contributed to the upswing.

On the downside, state-run Oil & Natural Gas Corporation (ONGC), pharmaceutical company Cipla, and engineering conglomerate Larsen & Toubro (L&T) saw declines. Sectoral indices reflected the day's mixed sentiment. The auto and metal sectors each gained 2%, while fast-moving consumer goods (FMCG) and public sector banks (PSU Banks) posted a 1% rise. The capital goods sector underperformed, falling 0.6%. Midcap stocks remained flat, while smallcaps dipped 0.4%. Analysts attributed part of the rally to the US Federal Reserve’s decision to slash interest rates by 50 basis points, creating renewed interest in emerging markets like India. Lower US rates often prompt investors to seek higher returns in countries with relatively higher interest rates.

Foreign portfolio investors (FPIs) have continued their buying spree, encouraged by India's favourable interest rate environment. According to data from the National Securities Depository Ltd (NSDL), FPIs bought $5.95bn worth of Indian equities in September alone, marking the fourth straight month of net inflows. This persistent foreign investment has bolstered sentiment and driven the indices to record levels.