The rally was broad-based, with market breadth firmly favouring advances. The advance-decline ratio stood at 2:1, indicating that gainers significantly outnumbered losers.
The Nifty Bank index climbed 394 points to 57,087, while the Nifty Midcap Index advanced 681 points to 62,304.
Here are the key reasons behind today’s rally:1. Financial stocks lead gains
Financial stocks, particularly non-banking financial companies (NBFCs), witnessed strong buying, tracking movements in the rupee and crude oil prices.
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2. Auto shares gain as crude falls
Automobile stocks attracted buying interest after crude oil prices declined 10% from Friday’s levels, supporting sentiment across the sector.
3. Crude-linked sectors outperform
Crude derivatives-related stocks saw significant movement. Oil marketing companies (OMCs) and airline stocks advanced, while upstream oil companies slipped.
4. Company-specific triggers support the rally
KFin Technologies surged more than 10% following positive commentary for FY27. Container Corporation of India (CONCOR) gained 7% after doubling its volume guidance for FY27.
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IDFC First Bank, AU Small Finance Bank and Lodha rose 5-6% after reacting positively to their first-quarter results. Information technology stocks extended Friday’s gains, with Oracle Financial Services Software (OFSS) rising 4% and Coforge gaining 2% ahead of its earnings announcement.
5. Mixed moves in select stocks
Exide Industries and Nuvama Wealth Management declined as both stocks will exit the futures and options (F&O) segment from Wednesday. Bank of India was among the top midcap losers after reporting in-line first-quarter results. CarTrade Tech extended its rally, gaining another 12% following a positive brokerage note.
From the Sensex basket, Eternal Ltd, InterGlobe Aviation Ltd, Infosys Ltd, Bajaj Finance Ltd, Max Healthcare Institute Ltd and Asian Paints Ltd were the major gainers. Oil and Natural Gas Corporation Ltd, HDFC Bank Ltd, Cipla Ltd and Axis Bank Ltd were the biggest laggards.
Gurmeet Chadha, Managing Partner & CIO, Complete Circle, On Eternal, said, “We continue to add Eternal in our portfolios. If you see the Q1 numbers, the net working capital days were down from 18 days to 14 days, which is phenomenal, considering that they are expanding dark stores.
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And I think the market share, once somebody crosses 50%, the unit economics change considerably. Although their AOV dropped to ₹506-508, the frequency of orders went up. I think the unit economics stand out. I was very impressed by the presentation and disclosures. I mean, for any young investor tracking new-age businesses, I think it’s a perfect time to look at the earnings snippets, thanks to digital media.
Swiggy and Zepto are also struggling with Amazon Now. And typically, what happens is, in this environment, which we have seen earlier, a new entrant tends to take market share from the other ones rather than the dominant player. Also, there’s a pushback. So, in the unlisted market, Zepto was about ₹38-39.
The price as of Friday—I have not checked today—is more like ₹33-34. So, it’s a bit of a pushback on valuation. The grey market prices are there, and I think now, in this kind of environment, you want more visibility in terms of when the cash burn will reduce, etc. So, we continue to be overweight on Eternal here. Other than that, we don’t have anything in quick commerce.”
