Sensex, Nifty rise 0.7% led by banks, IT, hospital stocks; Max Healthcare, Shriram Finance, TCS shine

Indian equities extended their winning streak for the third straight session on Monday, closing higher amid strong buying in banking, IT, and healthcare shares. Gains in financials and technology counters, coupled with renewed optimism in hospital stocks, helped benchmarks hold firm through the session despite weakness in metals and FMCG.

At close, the Sensex was up 583 points, or 0.7 percent, at 81,790, while the Nifty gained 183 points to 25,078. Market breadth remained negative, with 1,716 stocks advancing, 2,370 declining, and 154 unchanged on the BSE, signalling selective participation.

Top gainers and losers

The rally was driven by healthcare, financial, and IT majors. Max Healthcare surged 6.6 percent to Rs 1,139.70, emerging as the day’s top Nifty performer after the government announced a long-awaited revision of rates under the Central Government Health Scheme (CGHS) for nearly 2,000 medical procedures. Analysts said the revision -- the first in 15 years -- should meaningfully boost hospital earnings, especially for players with high exposure to government patients.

Shriram Finance gained 4 percent to Rs 671.45, extending its upmove following strong September-quarter updates that indicated healthy loan growth across business segments. Financial stocks remained key contributors to the market’s advance, with Axis Bank, Kotak Mahindra Bank, and Bajaj Finance rising between 2 and 2.7 percent.

Among IT majors, Tata Consultancy Services (TCS) jumped 3 percent ahead of its results on October 9, while Tech Mahindra climbed 2.8 percent and HCL Tech added 1.7 percent.

On the losing side, metals and energy stocks weighed on sentiment. Tata Steel dropped 1.9 percent, while Adani Ports, ITC, and Power Grid Corporation fell around 1 percent each. Eicher Motors, NTPC, Titan, SBI Life Insurance, and Trent were also among the laggards.

Sectoral performance

Sectoral performance showed a clear divergence. The Nifty IT index surged 2.3 percent to 34,722.55, leading all sectoral gainers, supported by buying in TCS, Tech Mahindra, and LTIMindtree. The Nifty Bank gained 0.9 percent to 56,104.85, and the Nifty Private Bank advanced 1.2 percent, marking a fifth consecutive session of gains as strong Q2 updates from HDFC Bank and Kotak Mahindra Bank lifted sentiment.

Among broader indices, the Nifty Midcap 100 rose 0.9 percent, while the Nifty Smallcap 100 added 0.3 percent.

Defensives lagged: Nifty FMCG slipped 0.3 percent, Nifty Energy declined 0.3 percent, and Nifty Metal fell 0.9 percent. The India VIX eased 1.3 percent to 10.19, indicating steady sentiment ahead of the earnings season.

Broader market drivers

The rally was marked by strong updates from leading banks. HDFC Bank reported 15 percent YoY deposit growth to Rs 27.1 lakh crore and 10 percent loan growth, while Kotak Mahindra Bank posted 15 percent advances growth and a 6.2 percent rise in CASA deposits. Analysts at Jefferies and Citi termed the growth trajectory “healthy and consistent.”

Healthcare stocks gained after the CGHS rate revision, with Fortis Healthcare, Apollo Hospitals, and Max Healthcare among the key beneficiaries. Brokerages estimate the move could lift large private hospitals’ EBITDA by 5-10 percent.

In IT, the rally extended for a third day as investors positioned ahead of results. Analysts at HDFC Securities and Axis Securities expect modest sequential growth for Q2 FY26, but said valuations have turned more reasonable after recent corrections.

Global and macro cues

Most Asian markets ended higher, led by Japan’s Nikkei 225 and South Korea’s Kospi, amid optimism over upcoming US rate cuts. European futures also traded positive. The rupee strengthened to 88.74 per US dollar, aided by likely IPO-related inflows and a firm domestic equity tone.

Foreign institutional investors sold shares worth Rs 1,583 crore on Friday, though domestic funds continued to absorb much of the selling pressure.

Technical view

Analysts said the Nifty 50 remains within a strong upward band but faces resistance near the 25,000–25,100 zone. Anand James, Chief Market Strategist at Geojit Financial Services, said oscillators remain supportive toward extending the 24,970–25,050 target achieved last week, though “a sustained move beyond 25,200 may require stronger triggers.” Support levels are pegged around 24,800-24,850, while a decisive breakout above 25,100 could open the door to 25,300-25,350 in the short term.

---

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.