Bank Shares Lead Gains
Indian benchmark indices inched higher on Monday, supported by robust performances from banking and financial stocks. As of 10:03 a.m. IST, the Nifty 50 rose 0.22% to 24,948.95 points, while the BSE Sensex gained 0.22% to 81,388.01 points. Private banks and financials were the main drivers, each rising 0.8%, following strong quarterly updates over the weekend.
Kotak Mahindra Bank led private bank gains, climbing 1.5%, while HDFC Bank, the heaviest weighted Nifty 50 stock, added 0.6%. Both banks reported healthy loan growth for the September quarter, with Kotak Mahindra posting a 15% increase and HDFC Bank a 10% rise. Non-bank lenders also drew attention, with Bajaj Finance surging 3% after reporting a 24% year-on-year increase in assets under management for the July-September quarter.
Dharmesh Kant, head of equity research at Cholamandalam Securities, said, “Quarterly business updates from public sector banks and non-bank lenders have been strong, while private sector banks were largely in line. This is likely to keep market sentiment positive as the earnings season unfolds.”
Market Outlook
Despite the early gains, analysts cautioned that short-term upside could be limited after last week’s strong 1% weekly gains in both the Nifty and Sensex. The previous surge was driven by expectations of a U.S. interest rate cut and Indian central bank lending reforms. Mid-cap and small-cap stocks remained largely unchanged on Monday.
In other market news, Lupin fell 2% after the U.S. FDA flagged its Pithampur unit-2 for regulatory or administrative actions. Investors are also expected to focus on upcoming primary market offerings, with Tata Capital and LG Electronics India opening for subscription later this week.
Overall, the market opened the week on a cautiously positive note, led by banking and financial stocks, with investor attention gradually shifting toward corporate earnings and new IPOs in the near term.
