HDFC Bank, Axis Bank and BEL Lead Gains While IT Stocks Face Selling Pressure; Investors Eye Earnings Season and Corporate Updates
Indian equity benchmarks opened the week on a strong footing, extending last week's gains as robust buying in banking and financial stocks lifted market sentiment. Positive cues from Asian markets, continued foreign institutional investor (FII) participation and encouraging corporate updates helped propel the benchmark indices higher during Monday's morning session.
At around 10:00 AM, the BSE Sensex was trading at 78,167.17, up 403.26 points or 0.52%, while the NSE Nifty50 gained 114.95 points or 0.47% to trade at 24,388.60. The rally was largely driven by heavyweight banking stocks, which offset weakness in the information technology sector.
Banking Stocks Lead the Market Higher
The banking and financial sector emerged as the biggest contributor to Monday's rally, with investors reacting positively to encouraging business updates released by leading private sector lenders.
HDFC Bank rose nearly 2% after announcing healthy first-quarter operational performance. The bank reported steady growth in both advances and deposits, reflecting continued demand for credit and a stable funding base. The update reinforced investor confidence ahead of the earnings season.
Axis Bank also traded among the top gainers, supported by renewed buying interest in private banking stocks. ICICI Bank extended its recent gains, while Bharat Electronics Ltd. (BEL) climbed over 2%, supported by optimism surrounding defence sector spending and strong order inflows.
Market participants believe the banking sector could remain in focus over the coming weeks as investors assess quarterly business updates and earnings announcements from major lenders.
Financials Outperform While IT Remains Under Pressure
Sector-wise, Nifty Bank, Nifty Private Bank, and Nifty Financial Services were the best-performing indices in early trade, reflecting broad-based buying across public and private financial institutions.
The positive momentum in banking stocks overshadowed weakness in technology shares. The Nifty IT index traded lower as investors booked profits in frontline IT companies amid concerns over global technology spending and cautious demand outlooks.
Major IT companies including Tata Consultancy Services (TCS), Infosys, and Wipro featured among the top losers on the Nifty50, limiting the benchmark's overall gains.
Metal stocks also witnessed selective buying, with the Nifty Metal index remaining in positive territory as investors tracked global commodity prices and expectations of improving industrial demand.
Broader Markets Continue to Show Resilience
The broader market remained relatively stable despite weakness in select sectors.
The Nifty Midcap 100 index traded around 0.18% higher, while the Nifty Smallcap 100 index remained largely flat with a slight positive bias. The performance suggests that investors continue to accumulate quality mid-cap and small-cap companies despite recent volatility.
Market breadth also remained healthy, indicating that buying interest was spread across multiple sectors rather than being concentrated only in large-cap stocks.
Corporate Developments Keep Investors Busy
Several company-specific developments also attracted investor attention during the session.
Granules India announced that it has secured Sole First-to-File (FTF) status for its abbreviated new drug application (ANDA) for the generic version of LUMRYZ, an extended-release sodium oxybate oral suspension. The exclusivity could provide the pharmaceutical company with a competitive advantage upon product approval and commercial launch.
Meanwhile, Info Edge (India), the parent company of recruitment platform Naukri, unveiled its expanded artificial intelligence-powered recruitment ecosystem. The company introduced AI-driven products including AI-Rex, Talent Pulse, and PremiumX, aimed at improving hiring efficiency for recruiters while offering enhanced job search capabilities for candidates.
These announcements highlight the increasing role of innovation and technology in driving long-term corporate growth.
IPO Market Remains Active
Primary market activity also remained in focus as the IC Electricals IPO entered the second day of its subscription period.
The book-built public issue, valued at approximately ₹47.91 crore, continues to attract investor interest. Market participants are closely monitoring subscription levels, particularly from retail and high-net-worth investors, as activity in the SME IPO segment remains robust.
Global Cues Support Domestic Sentiment
Asian equity markets traded with a positive bias during Monday's session, providing supportive cues for Indian equities. Improved investor confidence across regional markets, along with expectations that major central banks may maintain a balanced monetary policy stance, helped sustain buying momentum.
Investors are also monitoring global bond yields, crude oil prices, currency movements and developments surrounding international trade negotiations, all of which could influence foreign capital flows into emerging markets, including India.
What Investors Should Watch Next
With the first-quarter earnings season about to gather pace, market participants are expected to closely monitor management commentary on demand trends, profitability, capital expenditure and credit growth. Banking stocks are likely to remain at the forefront as investors assess quarterly performance across the financial sector.
Attention will also remain on foreign institutional investor (FII) activity, domestic institutional buying, inflation expectations, crude oil prices and global economic indicators. These factors will play a crucial role in determining whether the current rally can sustain momentum in the coming sessions.