Nifty, Sensex Post Gains for Fourth Straight Session as HDFC Bank Powers Rally

Mumbai, July 6: Indian benchmark indices extended their winning streak to a fourth consecutive session on Monday, powered by gains in banking, auto and realty stocks after encouraging June-quarter business updates from major lenders, easing crude oil prices and sustained foreign fund inflows.

The BSE Sensex rose 521.16 points, or 0.67%, to close at 78,285.07, while the Nifty 50 gained 159.50 points, or 0.66%, to settle at 24,430.35. Market breadth was mixed, with 1,924 stocks advancing, 2,226 declining and 185 remaining unchanged on the NSE. Broader markets performed well, with the Nifty Midcap 100 rising 0.4% and the Nifty Smallcap 100 advancing 0.7%.

Banking stocks climb

Financial stocks contributed to the day’s rally after several private lenders reported healthy June-quarter business updates. India’s largest private lender HDFC Bank rallied 3.6% after reporting a 15.4% year-on-year rise in gross advances and a 14.7% increase in deposits, ending up as the top gainer on the Nifty 50.

From a market-behaviour perspective, investors also responded positively to business updates released by several lenders over the weekend. IndusInd Bank, Bandhan Bank and Karur Vysya Bank rallied 3.6%, 3.4% and 4.2%, respectively, as traders cheered the banks’ operational performance ahead of the earnings season.

Axis Bank advanced after posting nearly 19% growth in advances and over 18% growth in deposits, before the stock went negative on profit booking. The updates reinforced optimism over credit growth ahead of the earnings season.

Kotak Mahindra Bank fell nearly 4% despite reporting double-digit year on year growth in loans and deposits, as investors remained cautious over relatively slower deposit growth and slow sequential growth in loans and deposits.

Among the Nifty constituents, HDFC Bank, Hindalco Industries, ONGC, Bajaj Auto and Mahindra & Mahindra were the top gainers, while Kotak Mahindra Bank, TCS, Max Healthcare, Bajaj Finserv and Coal India ended among the top losers.

Realty, auto shine; IT lags

Sectoral performance remained broadly positive, led by Realty, which surged 1.8%, followed by Consumer Durables (1.5%), Auto (1.4%), Oil & Gas (1.1%) and Metal (1%). The Energy index also ended higher by 0.8%.

On the other hand, Media was the worst-performing sector, declining 0.95%, followed by PSU Bank, which fell 0.9%, and IT, which slipped 0.6%. The IT pack underperformed as caution ahead of upcoming quarterly results overshadowed the sector. Analysts expect a subdued quarter for software exporters, citing soft client demand, AI-driven pricing headwinds and an uncertain global business environment.

Lower crude oil prices also supported sentiment. Brent crude traded below the $72-a-barrel mark after OPEC+ agreed to another production increase for August, a development seen as positive for India as it could help ease inflationary pressures, lower input costs and improve the current account balance.

Broader market sees stock-specific action

The broader market witnessed strong stock-specific activity.

Diamond Power Infrastructure hit the 10% upper circuit after securing a ₹435-crore order for Hyderabad data centre projects, while Raymond gained after appointing former BEL chief Bhanu Prakash Srivastava to lead its defence business.

Among the laggards, PC Jeweller slumped as investors booked profits after Friday’s sharp rally despite a strong business update. Vedanta Iron and Steel hit the lower circuit, while Vodafone Idea extended losses following reports that lenders have sought additional assurances before approving its proposed ₹35,000-crore loan package.

Global cues remain supportive

Softer crude oil prices, resilience in US stock futures and expectations that the Federal Reserve could begin easing monetary policy later this year supported risk appetite.
Domestically, sustained foreign institutional buying, optimism over a healthy monsoon and encouraging business updates from lenders kept investors upbeat as markets headed into the June-quarter earnings season.

Source: NSE, BSE