Indian markets staged a robust comeback on Monday, October 28, breaking a five-day losing streak. The rally was driven by strong performances in banking and metal stocks, supported by positive global cues. The Sensex surged by 603 points, closing at 80,005, while the Nifty 50 climbed 158 points to settle at 24,339. Midcap stocks outperformed, with the Nifty Midcap Index gaining 459 points to reach 55,737, and the Nifty Bank advancing by 472 points, finishing at 51,259.
All major sectoral indices closed in the green, led by the Nifty PSU Bank Index, which jumped 4%. The banking sector’s strength was bolstered by Bank of Baroda, which reported impressive September earnings, enhancing investor confidence across the industry. The Nifty Metal Index also registered a notable 2.4% increase, while sectors such as Nifty Media, Realty, and Pharma saw gains of over 1%.
Among the top gainers on the Nifty were ICICI Bank and Shriram Finance, both rising between 3% and 5% following their strong Q2 results. Bank of Baroda also climbed 4%, showcasing its best asset quality in nearly a decade, which sparked increased investor interest. BHEL surged by 10% after releasing positive Q2 earnings, ultimately closing the day with a 6% gain. Firstsource Solutions also rose 10% after revising its FY25 revenue growth guidance upward.
In the midcap segment, notable performances from Indian Bank and Arvind led to gains of 10% and 20%, respectively. Paras Defence saw a 4% increase after reporting nearly a 50% year-on-year rise in Q2 profit. Newly listed Waaree Energies made an impressive debut, closing its first trading day with a 54% gain above its issue price.
However, not all stocks fared well. Coal India faced a 4.2% decline due to weaker Q2 realizations and rising costs, negatively impacting investor sentiment. Bajaj Auto continued its downward trajectory for the third consecutive session, dropping 2% to ₹10,000, marking a 19% loss in October—its worst monthly decline since March 2020. IndiGo shares fell to a six-month low, tumbling 8% following a reported loss in its Q2 results, while Chola Investment saw a 7% decline due to deteriorating asset quality.
The earnings season elicited mixed reactions across sectors. Bank of Baroda impressed with its robust asset quality improvements, pushing its stock up 4%. CarTrade Tech surged 6% after a remarkable 500% increase in Q2 profits. In contrast, CreditAccess Grameen, Intellect Design, Torrent Pharma, and IDBI Bank experienced negative market reactions after disappointing Q2 results. Additionally, ITD Cementation saw a 7% pullback following news of its promoter planning to sell a 46.64% stake to an entity associated with the Adani Group.
With the markets recovering from last week’s downturn, analysts are cautiously optimistic about the sessions ahead. However, investor sentiment is likely to remain influenced by global cues, ongoing earnings results, and geopolitical developments. As the Q2 earnings season progresses, stocks with strong results are expected to lead the market, while those with weaker performances may struggle to gain traction.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. The performance of financial markets is subject to fluctuations and can change rapidly. Readers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions.
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