Keeping its bullish momentum intact, the Indian stock market saw another session of strong gains in Monday’s trade, October 20, due to better-than-expected earnings from banks and index heavyweight Reliance Industries and a rebound in global risk appetite following signs of easing US-China trade tensions.
Heavyweights led by Reliance Industries, Bharti Airtel, Infosys, SBI, and Axis Bank drove the Nifty 50 rally, which closed 0.52% higher at 25,843. The S&P BSE Sensex also gained 0.49%, ending the day at 84,363, compared to Friday’s close.
The broader markets also advanced, with the Nifty Midcap 100 surging 0.75%, while the Nifty Smallcap 100 rose 0.46%.
In terms of sector-wise performance, the Bank Nifty stole the spotlight, registering a new all-time high of 58,261 for the second consecutive trading session which reflected strong momentum in the banking space and investor confidence in financials.
The Nifty PSU Bank index also displayed similar strength, rallying 2.87%, followed by the Nifty Oil & Gas and Nifty IT indices, which gained 1.41% and 1%, respectively. The Nifty Media and Nifty Pharma indices also advanced, rising 0.87% each.
The Nifty Auto index was the weakest performer among the major sectoral indices, slipping 0.16%.
The first batch of September quarter earnings showed a healthy performance across sectors, suggesting that corporate earnings may have bottomed out. Banks showed improvements in asset quality and margins, while consumer goods companies have so far reported a strong set of numbers.
Tyre, banking stocks led the gains
Tyre maker Ceat led the gainers’ list, surging 12.7% to ₹4,203 apiece, as demand for the counter spiked following the release of its September quarter results, which came in above analysts’ estimates and triggered a broad-based rally in tyre stocks.
The company reported a 52.4% year-on-year jump in consolidated net profit to ₹186 crore for the second quarter. Other tyre majors, including JK Tyre & Industries, Apollo Tyres, and MRF, also rallied over 3% each.
AU Small Finance Bank rose 9.18% to ₹865.20 apiece, reacting positively to multiple target price upgrades from analysts after the bank’s September quarter results. Global brokerage Citi upgraded the stock to ‘Buy’ and raised its target price to ₹990.
Other banking stocks, including RBL Bank, Federal Bank, IDFC First Bank, Karur Vysya Bank, Bank of India, and Central Bank of India, also reacted positively to their Q2 numbers, with gains ranging between 3% and 9%.
Heavyweight Reliance Industries, which powered the rally, climbed 3.6% to ₹1,466.80 apiece after the Mukesh Ambani-led conglomerate posted healthy Q2 earnings, prompting target price upgrades from several analysts.
Extending its upward momentum, Ather Energy jumped 3.9% to close at a record high of ₹720.40 apiece. Other notable gainers included Adani Power, Vodafone Idea, Bajaj Finserv, Polycab India, and PNB Housing Finance, which all ended the session with strong gains.
Swiggy, OLA, ICICI Bank among worst hit
In terms of losers, Tata Investment Corporation led the pack, dropping 9.5% to ₹805, followed by Tejas Networks and UTI Asset Management, which fell 8.5% and 4.4%, respectively.
Ola Electric and Dixon Technologies were also among the top laggards within the Nifty 500 index, each slipping 3.8%.
ICICI Bank shares also came under pressure after the lender reported its September quarter earnings, leading to a 3.2% decline in its stock price to ₹1,390.
Other notable losers included JSW Energy, Hindustan Zinc, Poonawalla Fincorp, Shree Cement, Firstsource Solutions, Chalet Hotels, Swiggy, and Concord Biotech, along with several other Nifty 500 constituents, which all fell over 2%.
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