Sensex, Nifty Rebound in Early Trade as ICICI Bank, HDFC Bank Lead Recovery

Mumbai, July 21, 2025: After a weak start, India’s benchmark indices, Sensex and Nifty, staged a significant recovery on Monday, primarily driven by strong performances from leading banking stocks such as ICICI Bank and HDFC Bank.

Markets Erase Early Losses, Trade Firm by Mid-Morning

The BSE Sensex initially opened lower, shedding 148.68 points to 81,609.05, while the NSE Nifty dropped 67.55 points to 24,900.85 in early trade. However, both indices demonstrated resilience, rebounding swiftly as the morning progressed.

As of 11:15 AM:

• Sensex stood at 82,126.31, up 368.58 points or 0.45%
• Nifty was at 25,062.45, rising 94.05 points or 0.38%

ICICI Bank, HDFC Bank Lift Market Sentiment

ICICI Bank saw its shares surge over 2% after it reported a 15.9% year-on-year increase in its Q1 FY26 consolidated net profit, reaching ₹13,558 crore. On a standalone basis, the bank’s net profit rose by 15.5% to ₹12,768 crore.

HDFC Bank also gained more than 2%, despite a 1.31% decline in its consolidated net profit to ₹16,258 crore for the June quarter. However, the bank’s standalone net profit increased by 12.2% to ₹18,155 crore. The bank also announced a 1:1 bonus share issue and a special interim dividend of ₹5 per equity share.

Other notable gainers included Tata Steel, UltraTech Cement, Eternal, and Bajaj Finance.

Drag from Reliance, Axis Bank, IT Majors

Several heavyweights, however, underperformed and acted as a drag on the indices. These included Axis Bank, Reliance Industries, Infosys, HCL Technologies, Tech Mahindra, Mahindra & Mahindra, Titan, and TCS.

Reliance Industries notably slipped nearly 2%, even after announcing its highest-ever quarterly consolidated net profit of ₹26,994 crore, a 78.3% year-on-year surge. This impressive profit was largely driven by consumer businesses and a significant one-time gain of ₹8,924 crore from the sale of its stake in Asian Paints.

Global Cues and FII Activity

Asian markets showed mixed to positive signals, with South Korea’s Kospi and Hong Kong’s Hang Seng trading higher. US markets had ended mixed on Friday.

Foreign Institutional Investors (FIIs) were net buyers on Friday, with inflows of ₹374.74 crore into Indian equities, providing some support to the market. Brent crude oil prices were also slightly up, trading at $69.40 per barrel, a 0.17% increase.

Previous Session Recap

On Friday, 18 July, the Sensex had closed lower by 501.51 points at 81,757.73, and the Nifty fell 143.05 points to end at 24,968.40.

What’s Ahead for the Day?

Markets are likely to maintain a positive bias through the day, supported by strong performances from ICICI Bank and HDFC Bank. Sentiment may further improve with the boost from HDFC Bank’s bonus share issue and special dividend. However, pressure from underperforming heavyweights like Reliance, Infosys, and Axis Bank could cap sharp gains. Global cues remain mixed, so traders may stay cautious ahead of US and European market openings. All eyes will also be on further FII activity and sector-specific moves, especially in banking and metals.

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