Sensex surges 450 pts, Nifty at 25,100 as HDFC, ICICI Bank, Eternal lead rally; midcaps shine

Eternal, ICICI Bank, HDFC Bank, HDFC Life Insurance, and M&M were the top gainers on the Nifty.

Benchmark indices Nifty and Sensex opened the week on a strong footing, breaking their two-day losing streak on July 21, as renewed buying in heavyweight stocks like HDFC Bank, Eternal, and ICICI Bank lifted sentiment despite lingering concerns over trade tariffs. A strong showing in midcaps added to the momentum, even as smallcaps ended flat.

At close, the Sensex was up 442.61 points or 0.54 percent at 82,200.34, and the Nifty was up 122.30 points or 0.49 percent at 25,090.70. About 1720 shares advanced, 1968 shares declined, and 129 shares remained unchanged.

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While today's recovery was led by a good set of numbers from HDFC Bank and ICICI Bank, experts say markets are closely monitoring the outcome of the proposed US-India mini trade agreement. A favourable resolution could strengthen the outlook for export-oriented sectors and enhance India’s relative attractiveness among emerging markets. Meanwhile, the continued moderation in inflation has bolstered expectations of an additional rate cut, which, if materialised, would be supportive of market sentiment.

Sectoral indices on the NSE were mixed. Banking stocks led the gains, with the Nifty Private Bank index rising 1.05 percent and Nifty Bank up 0.98 percent. Nifty Metal (0.94 percent), Nifty Auto (0.44 percent), and Nifty Midcap 100 (0.46 percent) also posted healthy gains. On the flip side, selling was seen in oil & gas, FMCG, and PSU bank stocks. The Nifty Oil & Gas index was the top laggard, down 1.22 percent, followed by Nifty PSU Bank (-0.73 percent) and Nifty FMCG (-0.60 percent). India VIX slipped 0.70 percent to 11.31, indicating subdued volatility.

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Eternal, the parent company of Zomato, ended over 7 percent higher following its Q4 earnings. While net profit tanked 90 percent. Eternal reported quick commerce revenue at Rs 2,400 crore for Q1 FY26, marking a surge of nearly 154 percent YoY from Rs 942 crore in Q1 FY25. Revenue generated from food delivery segment rose over 16 percent on-year to Rs 2,261 crore.

Reliance Industries Ltd (RIL) slipped in trade on Monday after the diversified conglomerate reported its earnings report for the quarter ended June 30, sparking bullish brokerage commentary. Reliance Industries reported a 77 percent gain in net profit for the June quarter to Rs 30,783 crore, driven by a one-time gain from divesting its stake in Asian Paints. Even after excluding the Rs 8,924 crore gain, profit was up 25 percent year-on-year, as against Rs 15,138 crore in the same quarter last year.

HDFC Bank Ltd, India's largest private lender, rose 2 percent after it posted a decent June quarter, with Net Interest Income rising 5.4 percent YoY to Rs 31,438 crore. The bank’s net profit stood at Rs 18,155 crore. The bank also declared a 1:1 bonus issue and a Rs 5 special interim dividend. Nomura, Nuvama Institutional Equities and Bernstein have given a buy call on the stock.

ICICI Bank shares gained 2 percent after the lender reported its June quarter results on July 19, showing year-on-year growth in both core income and profitability. CLSA has given an outperform rating, while Nomura has a buy call. Out of 52 analysts, 49 have a 'Buy' and none have suggested a 'Sell'.

BSE, Angel One, and other capital market stocks rose up to 2.5 percent as reports said market regulator SEBI has allowed Jane Street to resume trading. Other capital market stocks also gained, namely Motilal Oswal Financial Services Ltd (MOFSL), Angel One, and CDSL. SEBI has allowed Jane Street to restart trading after the US high-frequency trading firm deposited Rs 4,844 crore, two sources aware of the matter told Reuters on July 21.

"The index witnessed a bullish follow-up candle after forming a Morning Star pattern at key support yesterday. This indicates strengthening momentum. For sustained upward movement, Nifty must hold above 25,330. Upside resistance is seen at 25,600–25,700, while 25,000 acts as immediate support," Mandar Bhojane of Choice Equity Broking said. "Bank Nifty continues its bullish structure of higher highs and higher lows after a successful double bottom pattern. Strong volumes suggest buying interest. The index must stay above 57,200 to retain bullish sentiment. A breakout above 57,600–58,000 can trigger sharp upside, whereas 56,800 is key support on the downside," he added.

Eternal, ICICI Bank, HDFC Bank, HDFC Life Insurance, and M&M were the top gainers on the Nifty. Laggards on the index included Eicher Motors, Wipro, HCL Tech, IndusInd Bank, and HUL.