The Sensex rose 291 points to 77,094, while the Nifty gained 90 points to close at 24,102. Nifty Bank advanced 250 points to 57,936, and the Midcap Index added 212 points to end at 62,729.
Here are the key reasons behind the market’s gains:
1. Banking heavyweights and index majors supported the rally
HDFC Bank, ICICI Bank, Reliance Industries and Infosys were among the biggest contributors to the Nifty’s gains, helping the benchmark index close above the 24,100 mark despite a largely rangebound session.
Dinshaw Irani, CEO, Helios Mutual Fund, on private banks, said, “I think banks are having a breather, given that they were the biggest lot to be sold off by the FIIs. So the hope is that not only will they stop selling, but when they come back, they’ll probably start buying. And actually, you’re right about the fact that the valuations are screaming right now.
I mean, below two times price-to-book for most of the frontline banks and having such pristine balance sheets, I think it’s about time that someone comes and starts taking a relook. However, on our part, we haven’t gone about buying these.
What we’ve done is, rather than relocating, whenever we’re getting fresh money, we’ll be picking up more of the consumer-facing NBFCs and market-facing players, and that’s what we have been doing in the BFSI space. The overall weight remains the same.”
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2. IT and pharma stocks led sectoral gains
Nifty IT and Nifty Pharma emerged as the best-performing sectoral indices. Cipla was the top gainer on the Nifty, rising 5% following a positive brokerage note.
3. Company-specific developments boosted select stocks
Kirloskar Oil hit the 20% upper circuit after an AI data centre-related win and a target price increase by JM Financial. RVNL gained over 1% after securing a ₹2,977 crore order from NMDC.
Power Mech rose 3% after winning a ₹1,009 crore order from JSW Thermal Energy, while Voltas gained 1% after crossing the one million air-conditioner sales milestone in FY27. Among midcaps, IDBI Bank, Delhivery, Mankind Pharma, Aditya Birla Capital and Tata Communications were among the top gainers.
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4. Fertiliser and defence stocks witnessed buying interest
Fertiliser stocks gained on hopes of improved supply, with FACT rising 3%. Defence shares Bharat Dynamics and BEL also advanced following a report of UAE interest in BrahMos and Akashteer systems.
5. Softer crude prices supported oil marketing companies
IOC, HPCL and BPCL gained nearly 1% after Brent crude fell below $80 per barrel. Market breadth remained strong, with advances outnumbering declines by a ratio of 2:1 on the NSE.
While most sectors ended in positive territory, FMCG was the only major sectoral index to close lower.
From the Sensex basket, Cipla Ltd, Dr Reddy’s Laboratories Ltd, Reliance Industries Ltd, Bajaj Auto Ltd, Tech Mahindra Ltd and Infosys Ltd were the major gainers. Asian Paints Ltd, Titan Company Ltd, Power Grid Corporation of India Ltd, Shriram Finance Ltd, ITC Ltd and Coal India Ltd were the biggest laggards.
Gurmeet Chadha, Managing Partner & CIO, Complete Circle, on the autos and banking sector, said, “We are pretty constructive on the markets. I think the oil-sensitive part of the market is now looking a touch better. Despite good data coming month on month, whether it is Vahan data or the dispatches, there was some concern around El Niño, and I think the spike in crude led to some bit of underperformance. But the numbers are holding up, and there is obviously some concern on margins with input pressures.
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I think the price hikes have already started. We increased the weight in M&M, and we added Sandhar Technologies to the portfolio. The other part, which is looking very good, is the banks. With surplus liquidity coming in, which is a large part of the Nifty, we should see cost savings of ₹6,000-7,000 crore in terms of the cost of funds and NIM expansion, maybe between five to eight basis points, largely with banks having overseas branches and foreign partner tie-ups for leverage.
Third, we are selectively looking at some of the names where import substitution is happening, with the yuan having appreciated 20-22% and China removing a lot of export rebates. Those are chemicals and metals, largely non-ferrous metals like aluminium. This pocket is looking good, and I think if the US trade deal goes through, hopefully the first tranche, you will probably have more legs in the market.”
