Market Wrap: Sensex jumps 411 pts, Nifty tops 25,800 as Reliance, HDFC Bank rally post-earnings

Indian shares advanced for a fourth session on Monday, with the Sensex climbing 0.5% and the Nifty closing above the 25,800 mark, as heavyweight Reliance Industries and HDFC Bank surged on post-results optimism. Gains were partly offset by profit-taking in ICICI Bank, which capped the broader rally.

The S&P BSE Sensex surged 411.18 points, or 0.49%, to close at 84,363.37, while the NSE Nifty 50 rose 133.30 points, or 0.52%, to settle at 25,843.15.

On the 30-stock Sensex, Reliance Industries, Bajaj Finserv, Axis Bank, SBI, and TCS led the gains, advancing between 1.8% and 3.5%.

Reliance Industries jumped 3.5% to a three-month high after its September-quarter results, as analysts turned upbeat on the conglomerate’s core earnings, retail momentum, and improving outlook across businesses.

HDFC Bank ended little changed after touching a record high earlier in the session, buoyed by steady quarterly earnings and an improvement in asset quality.

ICICI Bank slipped 3.2%, even as it topped profit estimates, with investors flagging concerns over muted loan and deposit growth.Broader markets also firmed, with the mid-cap index up 0.8% and small-caps rising 0.5%. The Sensex and Nifty have now climbed 2.8% over four sessions, leaving them less than 2% below their record highs from September 2024.

Indian markets will hold a special one-hour Muhurat trading session on Tuesday, from 2:30 p.m. to 3:30 p.m. IST, to mark Diwali.

Expert views

The Indian market extended its positive momentum, driven by better-than-expected Q2 results from major companies and festival optimism and positive global cues further bolstered investor sentiment, with easing trade narratives between the US-China and rise in European market led by defense stocks, said Vinod Nair, Head of Research at Geojit Investments, adding that improved FII inflows in the cash market turned the domestic market into a net buyer in October, following three consecutive months of selling.

“PSU banks and mid-sized financial services led the charge, benefiting from potential acquisitions and improvement in margins & asset quality as per Q2 results. The oil industry also experienced notable gains, thanks to declining crude prices and a strengthening Indian rupee,” said Nair.