Markets gain for 5th day: Sensex, Nifty surge 1% as IT, bank stocks rally; small, midcap indices outperform

Top gainers on the Nifty included Tech Mahindra, Trent, IndusInd Bank, Power Grid Corp, and Hero MotoCorp.

Benchmark indices Nifty and Sensex extended their winning streak to a fifth consecutive session on April 21, after strong Q4 earnings from major lenders like ICICI Bank and HDFC Bank gave investors a significant momentum boost. The rally has also been fuelled by sustained foreign inflows, with FIIs remaining net buyers for the past three trading sessions.

At close, the Sensex was up 855.30 points or 1.09 percent at 79,408.50, and the Nifty was up 273.90 points or 1.15 percent at 24,125.55. About 2829 shares advanced, 1093 shares declined, and 149 shares remained unchanged.

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"Easing retail and wholesale inflation figures served as the primary catalyst for market optimism, reinforcing expectations of policy stability. This macro tailwind, coupled with healthy corporate earnings—especially from large private banks—helped the benchmark indices maintain upward momentum," said Devarsh Vakil, Head of Prime Research at HDFC Securities.

Vakil added that sustained domestic inflows and short-covering in large-cap stocks have further supported the rally. With the Nifty comfortably above all key moving averages, the broader market trend remains firmly bullish across timeframes.

Also read: Market capitalisation of BSE-listed companies back above $5 trillion after three months

In today’s session, India’s largest private lender, HDFC Bank, rose over a percent after its strong Q4 results prompted bullish calls from several brokerages. The bank reported a 6.7 percent year-on-year rise in standalone net profit to Rs 17,616 crore for the fourth quarter of FY25. On a sequential basis, net profit grew by 5.3 percent. Its gross non-performing asset (NPA) ratio improved to 1.33 percent as of March 31, 2025, compared to 1.42 percent as of December 31, 2024.

Yes Bank surged 5 percent after posting a 63 percent jump in net profit for the March quarter, driven by lower provisions. Its standalone net profit rose to Rs 738 crore, up from Rs 452 crore a year ago. Provisions and contingencies dropped 32.5 percent year-on-year to Rs 318 crore.

Read more: HCL, Tech Mahindra, Coforge rise up to 6% post Infosys Q4 results

Suzlon shares gained nearly 5 percent after a draft notification from the Ministry of New and Renewable Energy proposed mandatory local sourcing of key wind turbine components. According to CNBC-TV18, the ministry has released a draft for the Revised List of Models & Manufacturers (RLMM) for wind turbine models.

Among sectors, Nifty Bank stole the spotlight, hitting a record high of 55,461 following robust results from ICICI Bank, HDFC Bank, and Yes Bank. Nifty IT gained 2.5 percent, led by Tech Mahindra and HCL Tech. Nifty Auto also advanced over 2 percent, with Metal, Oil & Gas, PSU Banks, and Realty indices rising more than 2 percent each. On the downside, Nifty FMCG slipped nearly a percent, dragged by ITC, HUL, and Varun Beverages.

The broader market outperformed the frontline indices, with the Nifty Midcap 100 and Smallcap 100 rising 2.5 and 2.2 percent, respectively. Vakil noted that while large caps have led the rally so far, mid- and small-cap stocks are now well-positioned to outperform in the near term.

“Nifty still trails its all-time high. If it continues to mirror the strength in financials, the next level to watch is 24,050, coinciding with the 50 percent retracement of the fall from the all-time high of 26,277 to the recent low of 21,743, and aligning with the 200 DSMA,” said Sameet Chavan of Angel One. “Beyond this, the next key retracement is at 24,545. These levels should be viewed as immediate upside targets in the near term. On the flip side, the Falling Channel breakout point around 23,600 now becomes immediate support, followed by a strong base near 23,250, where the 89 DEMA provided support during the last three sessions. We maintain our positive outlook, although the next leg of the up-move may not be as swift,” he added.

Top gainers on the Nifty included Tech Mahindra, Trent, IndusInd Bank, Power Grid Corp, and Hero MotoCorp. Major laggards were Adani Ports, HDFC Life Insurance, ITC, HUL, and Asian Paints.

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