Sensex Surges Over 500 Points, Nifty Tops 23,500 as Banking Stocks Rally on Strong Q4 Results
Indian stock markets opened the week on a high note, with Sensex rising over 500 points and Nifty crossing 23,500, powered by robust Q4 earnings from top private banks.
The BSE Sensex jumped 500+ points in early trade, hitting 78,928.09, while the NSE Nifty50 advanced 84.85 points to 23,936.50 by 9:27 am. The rally was led by banking giants HDFC Bank and ICICI Bank, both of which posted better-than-expected Q4 results.
“India is the only large economy which can grow at 6% even in a slowing global economy,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. “This, along with the declining dollar, has the potential to attract more FPI inflows in the short run,” he added.
Tech Mahindra was the leading gainer on the Sensex, climbing 3.40%, followed by Axis Bank (2.78%), SBI (2.56%), IndusInd Bank (1.96%), and Infosys (1.69%).
Nifty sectoral indices reflected broad market optimism. Nifty PSU Bank rose 2.06%, Nifty Private Bank jumped 1.77%, and Nifty IT advanced 1.52%. Midcap and small-cap indices also posted strong gains, with Nifty Midcap100 up 1.19% and Nifty Smallcap100 gaining 0.91%.
Oil & Gas, Financial Services, Metal, Consumer Durables, and Pharma indices all traded in positive territory.
Adani Ports & SEZ faced the steepest fall, shedding 2.69%. Other laggards included Eternal (-1.47%), ITC (-1.17%), Bharti Airtel (-0.91%), and Nestle India (-0.86%)
Nifty FMCG and Nifty Media were the only sectoral indices in the red, declining 0.64% and 0.40% respectively.
Despite global economic headwinds, domestic sentiment remains optimistic. “The focus of FIIs will be on consumption-led themes like financials, telecom, aviation, hotels, and healthcare,” said Vijayakumar. He added that IT stocks may continue to lag due to weak US growth prospects.
India VIX, the market’s volatility gauge, inched up 0.85%, signaling mild investor caution.
India’s relative macroeconomic resilience, strong domestic demand, and ongoing reforms have kept investor confidence intact. Markets also reacted positively to reports of a potential India-US strategic trade deal in the coming months.
Experts believe that with resilient growth projections and positive earnings momentum, the Indian equity market could continue its upward trend in the near term. “Viewed from the short-term construct, it is Advantage India,” said Vijayakumar.
