Indian Stock Market Rallies As Banking Sector Powers Gains

On a positive note, India’s equity market surged on Tuesday, buoyed by substantial gains in banking stocks, particularly from major players like ICICI Bank and State Bank of India (SBI).

At the end of trading, the benchmark Sensex climbed 363 points, a rise of 0.45%, closing at 80,369. Meanwhile, the Nifty 50 index also saw a strong performance, advancing 127 points or 0.52% to finish at 24,466.

The banking sector played a pivotal role in this market rally, with the Nifty Bank index soaring by 1,061 points or 2.07%, reaching 52,320.

Investors showed increased confidence in financial services, which lifted the sector substantially.

In contrast to the large-cap indices, the broader market indices outperformed. The Nifty Midcap 100 index surged by 514 points or 0.92%, closing at 56,251, while the Nifty Smallcap 100 index rose 136 points or 0.76% to settle at 18,198.

Sector-wise, gains were widespread, with significant upticks in indices such as PSU Bank, financial services, metals, real estate, energy, private banking, and public sector enterprises. Conversely, sectors like automotive, IT, pharmaceuticals, FMCG, and consumer goods saw declines, reflecting profit booking.

Within the Sensex constituents, SBI, ICICI Bank, NTPC, Bajaj Finance, Bajaj Finserv, L&T, Axis Bank, HDFC Bank, ITC, Power Grid, and Kotak Mahindra Bank emerged as the top performers. In contrast, Maruti Suzuki, Tata Motors, Sun Pharma, Bharti Airtel, IndusInd Bank, Mahindra & Mahindra, Infosys, and JSW Steel faced losses.

Markets Closed In The Green, Keeping Festive Cheer Alive: Vikram Kasat

Commenting on the market dynamics, Vikram Kasat, Head of Advisory at PL Capital – Prabhudas Lilladher stated, “Markets recovered in the second half of the trading session, closing in the green for the second consecutive day and keeping the festive cheer alive.”

“Private and PSU banks, along with other financial services stocks, led the rally, with these indices gaining over 2 per cent. However, the pharma and auto indices experienced profit booking and closed in the red. While FIIs have pulled out nearly Rs 1.03 lakh crore from Indian equities in October alone, strong domestic institutional inflows are acting like a floor for markets with net purchases worth Rs 98,491 crore,” he added.

The day began on a sluggish note, with the Sensex initially trading down by 344 points at 79,660, and the Nifty down by 81 points at 24,257 during the morning session.

However, the market’s resilience throughout the day showcased the underlying strength and adaptability of Indian equities.

Also Read: Andhra Pradesh Pursues Major Investments From Adani Group & Adobe