Markets Edge Higher As Banking And IT Stocks Lead Early Gains

Indian equities opened on a positive note on Monday, lifted by strength in banking and IT counters.

Improved investor sentiment followed the Reserve Bank of India’s recent lending reforms and came just ahead of the quarterly earnings season.

At the opening bell, the Sensex rose by 67 points, or about 0.09 per cent, to 81,274.79. The Nifty also advanced 22 points, or nearly 0.10 per cent, to reach 24,916.55.

Leading the gains on the Sensex were Bajaj Finance, HDFC Bank, Axis Bank, HCL Tech, TCS, Trent, and Infosys, with their shares climbing as much as 1 per cent.

The broader markets also opened firmer, with the Nifty MidCap index gaining 0.11 per cent and the Nifty SmallCap index rising 0.08 per cent.

According to market experts, Indian benchmarks displayed resilience despite global headwinds and local economic challenges.

They pointed to the RBI’s accommodative stance as a key factor supporting the uptrend.

The central bank kept the repo rate steady at 5.5 per cent, revised its inflation forecast downward for FY26, and lifted its GDP growth outlook.

Analysts stated, “Capital market lending reforms and expectations of strong festive demand also boosted investor confidence.”

However, they also urged caution in light of continued volatility.

“A buy-on-dips strategy remains advisable, especially in leveraged positions. Investors should book partial profits on rallies and use tight stop losses. Fresh long positions should be taken only if the Nifty sustains above the 25,000 mark,” they advised.

In the coming days, market trends are likely to be shaped by:

• Quarterly earnings releases,
• Management commentaries for the second half of FY26,
• IPO market developments,
• Publication of FOMC minutes, and
• Remarks from US Federal Reserve Chair Jerome Powell

Progress in the India–US trade negotiations is also likely to influence market sentiment.

On Friday, both indices extended their winning streak for a second consecutive session.

The Sensex ended 223.86 points, or 0.28 per cent, higher at 81,207.17, while the Nifty closed 57.95 points, or 0.23 per cent, up at 24,894.25.

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