Banks Fuel Market Surge
Indian Equities Open Higher, Led by Strong Banking Sector Rally and FII Buying
Anonymous
Key Points
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Shakti Pumps India gained about 7.56% after it said it had received a letter of emplacement from Maharashtra State Electricity Distribution Company (MSEDCL) to establish off-grid solar photovoltaic water pumping systems in Maharashtra.
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Market breadth at the start showed more gainers than losers on the BSE, with 1,669 stocks rising, 1,561 falling and 208 unchanged.
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HDFC Bank reported a 15.4% rise in gross advances in the June quarter, with period-end deposits up 14.7%, while Axis Bank posted 18.8% growth in gross advances.
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IndusInd Bank’s June quarter showed sequential advances up 3.3% and deposits up 3.8%; however, year-on-year advances were down 2.3% while deposits rose 4.5%.
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Foreign institutional investors added to the rally with net inflows of Rs 1,355 crore on Friday, according to provisional data.
Indian stocks opened firmly higher on Monday, with the Sensex climbing 281 points to 78,051 and the Nifty gaining 74 points to 24,347, according to Whalesbook. Private lenders led the charge, powered by strong June-quarter updates from HDFC Bank and Axis Bank.
Falling oil prices added to the positive mood. Brent crude slipped below $72 per barrel after OPEC+ raised production targets and shipments through the Strait of Hormuz resumed. The combination of banking strength and easing oil costs gave investors fresh confidence to buy.
HDFC and Axis Bank Earnings Spark Banking Rally
HDFC Bank reported a 15.4% rise in gross advances in the June quarter, with deposits up 14.7% over the same period. Axis Bank was even stronger, posting 18.8% growth in gross advances. Both results beat expectations and sent banking stocks sharply higher at the open, according to Upstox.
IndusInd Bank painted a more mixed picture. Sequential advances rose 3.3% and deposits climbed 3.8%. But year-on-year advances fell 2.3%, even as deposits grew 4.5%. The broader banking index still gained, driven by the stronger numbers from its larger peers.
Foreign Buyers and Monsoon Progress Lift Sentiment
Foreign institutional investors, or FIIs, put Rs 1,355 crore into Indian stocks on Friday, according to provisional data cited by Whalesbook. That net buying continued into Monday's session, giving the market an extra lift. Domestic funds were more cautious, with mixed activity from mutual funds and other local investors.
Analysts pointed to two other near-term supports: improving monsoon progress across India and a cleaner macro backdrop heading into Q1 earnings season. Market breadth backed the optimism. On the BSE, 1,669 stocks rose while 1,561 fell and 208 stayed unchanged at the open, according to Lokmattimes.
Cheaper Oil and Hormuz Reopening Ease Inflation Fears
Brent crude dropping below $72 per barrel was a big positive for India, which imports most of its oil. Lower oil prices cut import costs and ease inflation pressure. OPEC+ raising output targets added to the supply-side relief. Shipments resuming through the Strait of Hormuz removed a key risk that had worried traders in recent weeks.
The rupee softened slightly to around 85.27 per dollar, while the 10-year government bond yield eased to about 6.69%. Both moves suggest markets are calm. Analysts said the Nifty could keep climbing as long as it holds above the 24,150 level.
Shakti Pumps Surges 7.5% on Solar Pumping Contract
Not all the gains came from banks. Shakti Pumps India jumped 7.56% after the company said it received a letter of award from Maharashtra State Electricity Distribution Company, or MSEDCL. The deal covers off-grid solar photovoltaic water pumping systems across Maharashtra. It was one of the day's standout performers.
Elsewhere in the market, Manappuram Finance reached a 52-week high of Rs 336.9, up 37.5% over the past year, according to MarketsMojo. Aditya Birla Capital also hit a fresh peak at Rs 406, rising 66.4% from its 52-week low of Rs 244. Both moves reflected broad-based strength beyond just the banking sector.
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