Nifty, Sensex Jumps Back After Two Days of Losses; ICICI and HDFC Bank Lead the Upswing

Market Update at 4:00 PM: On Monday, July 21, Indian equity benchmarks closed higher, supported by strong Q1 results from ICICI Bank and HDFC Bank. The Nifty 50 rebounded from its 50-day exponential moving average (50-DEMA), breaking a two-day losing streak. At the close, the Nifty gained 122.30 points, or 0.49 per cent, to settle at 25,090.70, while the Sensex advanced 442.63 points, or 0.54 per cent, to 82,200.35.

Reliance Industries dragged the indices, slipping 3.35 per cent after earnings in its energy and retail businesses missed expectations. Seven of the eleven key sectoral indices closed in the green, while broader markets were mixed, with the Mid-Cap 100 index gaining 0.62 per cent and the Small-Cap 100 index edging down 0.01 per cent.

HDFC Bank rose 2.20 per cent on a 12 per cent YoY profit increase, while ICICI Bank surged 2.81 per cent after reporting a 15 per cent YoY rise in Q1 profit to Rs 12,768 crore. The Nifty Financial Services index led sectoral gains, rising 1.62 per cent, marking its strongest intraday rise in six weeks. The Nifty PSU Bank index fell 0.62 per cent, weighed down by Union Bank’s 2.61 per cent drop.

ICICI Bank (+77.97 points), HDFC Bank (+52.99 points), and Mahindra & Mahindra (+14.57 points) were the top contributors. Reliance Industries (-45.83 points), TCS (-9.20 points), and ITC (-6.5 points) were the main drags.

On the NSE, out of 3,075 stocks, 1,492 advanced, 1,487 declined, and 99 were unchanged. Eighty-four stocks hit new 52-week highs, 29 touched fresh lows, while 87 were locked in upper circuits and 76 in lower circuits.

Market Update at 12:15 PM: Indian benchmark indices, Sensex and Nifty, edged higher after a mostly flat session as investors assessed policy signals from China and kept an eye on trade developments.

By 12:00 PM, the Nifty50 had risen 68.60 points or 0.27 per cent to 25,037.00, while the Sensex gained 292.74 points or 0.36 per cent to 82,064.14.

On the Sensex, leading gainers were Eternal (Zomato), HDFC Bank, ICICI Bank, UltraTech Cement, M&M, and BEL, while Reliance Industries (RIL), HCL Tech, HUL, Axis Bank, TCS, and Titan were among the laggards.

In the broader market, the Nifty Midcap 100 advanced 0.45 per cent, whereas the Smallcap 100 slipped 0.23 per cent. Sector-wise, Nifty IT, PSU Bank, Pharma, and Auto declined 0.64 per cent, 0.68 per cent, 0.42 per cent, and 0.34 per cent respectively, while Nifty Metal was up 0.63 per cent.

Market Update at 10:30 AM: Indian equity markets began Monday’s session on a muted note as gains in HDFC Bank and ICICI Bank, supported by stronger-than-expected quarterly earnings, balanced declines in Reliance Industries, where concerns persist over the oil-to-chemicals and retail segments.

By 9:19 a.m. IST, the Nifty 50 was marginally lower by 0.02 per cent at 24,962.3, while the BSE Sensex edged up 0.03 per cent to 81,784.3. Financial stocks rose 0.6 per cent, led by HDFC Bank which climbed 1 per cent and ICICI Bank adding 1.6 per cent. Out of 13 major sectors, eight were trading in the red. Reliance Industries slipped 1.7 per cent as brokerages highlighted operational pressures, while mid-cap and small-cap indices both dropped 0.4 per cent.

Pre-Market Update at 7:45 AM: Indian benchmark indices are expected to open muted on Monday as markets digest Q1 FY26 earnings. At 7:19 AM, GIFT Nifty was near 25,020, down 7.5 points, indicating a quiet start.

Asian equities traded mixed; MSCI’s Asia-Pacific index excluding Japan remained steady, while U.S. futures were flat ahead of key tech results. This week, markets will watch U.S.-India trade discussions, possible U.S. tariff changes, Q1 earnings, IPO activity, foreign flows, and macroeconomic indicators.

Reliance Industries reported Q1 net profit of Rs 26,994 crore, up 78 per cent year-on-year, revenue of Rs 2,73,252 crore higher by 6 per cent, and EBITDA of Rs 58,024 crore rising 35.7 per cent, with margins improving to 21.2 per cent. HDFC Bank’s net profit rose 12.24 per cent to Rs 18,155.21 crore, NII stood at Rs 31,439 crore higher by 5.4 per cent, and core NIM was 3.35 per cent. The bank declared a special interim dividend of Rs 5 per share and a 1:1 bonus issue. ICICI Bank’s profit grew 15.5 per cent to Rs 12,768 crore, with NII rising 10.6 per cent to Rs 21,635 crore; gross NPA was 1.67 per cent, and net NPA 0.41 per cent.

Earnings due today include UltraTech Cement, Eternal, IDBI Bank, Havells India, Oberoi Realty, CRISIL, UCO Bank, PNB Housing Finance, DCM Shriram, and CIE Automotive India, with over 33 companies reporting.

FIIs were net buyers at Rs 374.74 crore, and DIIs purchased Rs 2,103.51 crore on July 18. On Friday, the Sensex fell 501.51 points to 81,757.73, and the Nifty lost 143.05 points to 24,968.40 amid broad-based selling.

China kept its 1-year LPR at 3.0 per cent and 5-year at 3.5 per cent. Japan’s ruling LDP coalition won 47 seats, short of the 50 needed for upper house control.

U.S. indices ended flat Friday: S&P 500 at 6,296.79 down 0.01 per cent, Nasdaq at 20,895.66 up 0.05 per cent, Dow at 44,342.19 down 0.32 per cent. Michigan’s consumer sentiment index rose to 61.8. Dollar index stood at 98.352. Brent crude traded at USD 69.45 up 0.25 per cent, and WTI at USD 67.52 up 0.27 per cent.

For today, Angel One, Bandhan Bank, RBL Bank and Hindustan Copper remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.