PSU Banks, FMCG and Metal Stocks Lead Rally While Investors Track Q1 Earnings, IPO Activity and US-Iran Talks

Indian benchmark indices started the week on a strong note, with the Sensex rising more than 600 points and the Nifty 50 reclaiming the 24,500 mark. Positive global cues, easing crude oil prices and renewed optimism over diplomatic talks between the United States and Iran boosted investor sentiment across sectors.

The rally was broad-based, with buying interest visible in frontline as well as mid- and small-cap stocks. Investors also remained focused on the ongoing Q1 FY27 earnings season and an active primary market, both of which continued to influence stock-specific movements.

Markets Open Firm on Positive Global Signals

The domestic equity market opened higher after crude oil prices declined following comments from US President Donald Trump that negotiations with Tehran would commence on Monday. Lower oil prices eased concerns over inflation and India's import bill, encouraging buying across key sectors.

At around 10:00 AM, the BSE Sensex was trading at 78,666.94, up 572.30 points (0.73%), while the Nifty 50 climbed 185.15 points (0.76%) to 24,568.75. During early trade, the Sensex briefly extended its gains beyond 600 points, reflecting strong investor confidence.

The rally was supported by gains across most sectoral indices, with market breadth remaining firmly positive.

Broader Markets Continue Their Winning Momentum

Buying interest extended beyond large-cap stocks, highlighting healthy market participation.

• Nifty MidCap Index: Up 0.42%

• Nifty SmallCap Index: Up 0.54%

The continued strength in broader markets indicates that investors remain optimistic about domestic growth prospects despite global uncertainties. Mid- and small-cap stocks have witnessed consistent inflows over recent weeks as investors seek opportunities beyond benchmark companies.

PSU Banks Lead Sectoral Rally

Among sectoral indices, Nifty PSU Bank emerged as the strongest performer, extending gains for the fourth consecutive trading session.

Leading contributors included:

• State Bank of India (SBI)

• Bank of Baroda

• Union Bank of India

The banking sector benefited from expectations of sustained credit growth, improving asset quality and strong earnings visibility.

The Nifty FMCG index also advanced over 1%, supported by buying in ITC, while the Nifty Metal index gained on improving global commodity sentiment. On the other hand, the Nifty Media index underperformed amid profit booking in select counters.

ITC, IndiGo and Bajaj Finance Among Top Gainers

Buying was concentrated in several blue-chip stocks.

Top performers included:

• ITC

• InterGlobe Aviation (IndiGo)

• Bajaj Finance

• Bajaj Finserv

• Larsen & Toubro

• TCS

ITC gained more than 4% even after reporting a 27% year-on-year decline in net profit to ₹3,759 crore during the June quarter. Investors appeared encouraged by the company's operational performance and long-term business outlook.

InterGlobe Aviation also witnessed strong buying amid improving aviation demand expectations, while financial stocks supported the benchmark indices.

Muthoot Finance Plunges Over 14%

Despite the broader market rally, Muthoot Finance emerged as one of the biggest laggards.

The stock declined more than 14%, making it one of the worst-performing stocks of the day. Investors remained cautious following company-specific developments and heavy selling pressure, although the overall market sentiment remained positive.

ideaForge Gains After Securing ₹151 Crore Funding Support

Shares of ideaForge Technology rose nearly 3% after the company received an in-principle approval from the Technology Development Board.

The approval allows funding of up to ₹151 crore at an interest rate of 4% under the Research, Development and Innovation (RDI) scheme. The funding will support the company's YETI heavy-lift autonomous aerial logistics vehicle project, strengthening its presence in India's growing defence and drone ecosystem.

Gold and Silver Rise as Investors Await US-Iran Negotiations

Precious metals traded higher on the Multi Commodity Exchange (MCX), with both gold and silver witnessing fresh buying.

Market participants closely monitored reports of upcoming negotiations between the United States and Iran. The talks are expected to influence crude oil prices, global inflation expectations and overall risk sentiment in financial markets.

Corporate Earnings Take Centre Stage

Several prominent companies are scheduled to announce their Q1 FY27 financial results today, which could drive stock-specific action throughout the trading session.

The earnings calendar includes:

• CAMS

• Escorts Kubota

• Great Eastern Shipping

• GlaxoSmithKline Pharmaceuticals

• JM Financial

• Kansai Nerolac Paints

• KEI Industries

• Sri Lotus Developers & Realty

• NOCIL

• Sanathan Textiles

• Stove Kraft

• Thomas Cook (India)

Investors will closely monitor management commentary on demand trends, margins, capital expenditure and future guidance.

Primary Market Remains Active

The IPO market continued to witness healthy activity with multiple issues open for subscription.

Anawil Wire & Engineering IPO opened for bidding and aims to raise ₹177.81 crore.

Meanwhile:

• G.V. Electricals IPO entered its second day.

• Fusion Klassroom Edutech IPO remained open for subscription.

• MV Electrosystems IPO

• Juniper Green Energy IPO

• Dhaval Packaging IPO

• Oneindig Technologies IPO

were in their final day of bidding, keeping investor interest firmly focused on the primary market.

Global Developments Remain Key for Investors

Global markets continue to watch diplomatic developments in the Middle East. Any progress in the US-Iran negotiations could ease concerns surrounding crude oil supply and inflation, which would be supportive for emerging markets like India.

Additionally, investors are keeping an eye on upcoming economic data releases and central bank commentary from major economies, as these could influence foreign investment flows into Indian equities.

Market Outlook

Indian equities remain on a firm footing, supported by improving global sentiment, lower crude oil prices and strong domestic participation. The resilience of broader markets, strength in PSU banks and continued optimism surrounding corporate earnings indicate that the market's underlying trend remains constructive.

Going forward, investors will closely monitor Q1 earnings announcements, institutional fund flows, IPO subscription trends and geopolitical developments. Sustained stability in crude oil prices and positive global cues could help the benchmark indices maintain their upward momentum in the near term, although stock-specific volatility is expected to remain high during the ongoing earnings season.