The rally came even as the broader market underperformed. The Midcap Index fell 259 points to 62,428, while the Nifty Bank index surged 939 points, or more than 1.5%, to 58,521 ahead of quarterly earnings from major banks.
Here are the key reasons behind today’s market rally:1. Banking stocks lead the charge
Banking shares drove the benchmarks higher, with the Nifty Bank index climbing more than 1.5% ahead of earnings from banking heavyweights. ICICI Bank and HDFC Bank were among the biggest contributors to the Nifty’s gains.
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2. Reliance Industries supports benchmark indices
Reliance Industries emerged as one of the largest contributors to the Nifty, providing significant support to the benchmark alongside leading private sector banks.
3. IT stocks see mixed but positive action
Technology stocks remained in focus after quarterly earnings. Tech Mahindra surged 5% after reporting a strong first-quarter performance and emerged as the top gainer on the Nifty. Wipro, however, ended 1% lower following its first-quarter results.
4. Strong earnings boost select stocks
Quarterly earnings continued to drive stock-specific action. Jio Financial Services gained more than 3% after healthy first-quarter results, while Federal Bank surged 7% after reporting strong quarterly numbers, including 15% year-on-year loan growth. 360 One WAM added 3% following positive management commentary.
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5. Realty stocks advance despite broader market weakness
Real estate stocks ended largely higher, with DLF and Prestige Estates Projects gaining around 3% each. Kalyan Jewellers extended its winning streak and has risen 21% this week, while Bharat Forge climbed 4% on a positive read-through from GNA Axles.
Despite the rally in benchmark indices, broader market participation remained weak. The advance-decline ratio stood at 2:3, indicating more stocks declined than advanced. Capital market stocks remained under pressure, with BSE falling 3%. Polycab India declined 4% despite positive management commentary, while KEI Industries also ended lower.
From the Sensex basket, Tech Mahindra Ltd, Kotak Mahindra Bank Ltd, Jio Financial Services Ltd, Tata Consultancy Services Ltd, Reliance Industries Ltd and ICICI Bank Ltd were the major gainers.
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Hindalco Industries Ltd, Dr Reddy’s Laboratories Ltd, Wipro Ltd, Max Healthcare Institute Ltd, Cipla Ltd and Bharti Airtel Ltd were the biggest laggards.
Market This Week (July 13 to 17)
Friday’s sharp rally helped Indian equity benchmarks end the week in positive territory, reversing last week’s losses. The Nifty reclaimed the 24,300 mark, while both the Sensex and the Nifty gained 0.5% for the week.
Financial stocks outperformed the broader market, with the Nifty Bank index rising 1% during the week. In contrast, the Midcap Index underperformed, ending the week 1% lower.
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Information technology stocks were the biggest contributors to the benchmark indices’ weekly gains. Among the top gainers on the Nifty were Tata Consultancy Services (TCS), Tech Mahindra, HCL Technologies, Bajaj Finance, Kotak Mahindra Bank and ICICI Bank. On the losing side, Larsen & Toubro (L&T), Bajaj Finserv, Grasim Industries and Tata Steel were among the top drags on the Nifty during the week.
Within the midcap space, Patanjali Foods, ICICI Lombard General Insurance, Vedanta and Vishal Mega Mart were among the biggest losers. Meanwhile, Kalyan Jewellers, ABB India, SBI Card, Dixon Technologies, Bharat Heavy Electricals (BHEL) and Divi’s Laboratories emerged as the top midcap gainers for the week.
