Indian Shares Climb as Strong Earnings Boost Investor Confidence
Mumbai – Indian equity markets started the week on a firm footing, driven by strong quarterly earnings from major companies and renewed investor optimism.
Benchmark indices gained, supported by healthy performances from HDFC Bank and Reliance Industries, reflecting resilience in the Indian economy and encouraging prospects for corporate India.
The Nifty 50 rose 0.45% to 25,828.75, while the BSE Sensex gained 0.51% to 84,376.21 as of mid-morning trade. Early in the session, both benchmarks had recorded intraday gains of around 0.8%, positioning them close to record levels last seen in September 2024.
Broad-based sectoral participation highlighted the strength in domestic equities, with 14 of 16 major sectors registering gains. Mid-cap stocks rose about 0.6%, while small-cap indices remained stable.
Private lender HDFC Bank stood out as a key driver of the rally, climbing to a record high following better-than-expected second-quarter results.
The bank reported robust loan growth and higher trading income, signaling strong operational performance and efficient management.
While profit booking pared some gains, HDFC Bank continued to trade around 0.5% above previous levels, underscoring investor confidence in its growth trajectory.
Analysts highlighted that the bank’s consistent performance, combined with stable asset quality, has strengthened its market position, making it a preferred choice among institutional and retail investors.
Reliance Industries, India’s largest private conglomerate spanning energy, telecom, and retail, recorded a 3.4% gain to a three-month high. Market analysts pointed to the company’s robust core earnings, expanding retail operations, and favorable earnings outlook as positive catalysts.
Brokerages highlighted that Reliance’s integrated business model continues to provide resilience against sector-specific volatility, and its retail growth adds an additional layer of stability to earnings.
ICICI Bank, another major private sector lender, experienced a slight 2% dip despite reporting strong quarterly results. Analysts noted softness in loan and deposit growth as a factor tempering immediate gains, while maintaining a positive medium-term outlook for the bank.
The temporary pullback is seen as a healthy consolidation in a market that has been trending upwards in recent weeks.
Market sentiment has been reinforced by several positive factors. Strong quarterly results, upcoming festive season demand, and optimism surrounding India-U.S. trade talks have combined to bolster investor confidence.
“Positive earnings momentum and macroeconomic stability have supported the upward trend in Indian equities, reflecting investor trust in the country’s growth story,” said Vishnu Kant Upadhyay, assistant vice president of research at Master Capital Services.
Ultratech Cement slipped 0.7% after reporting quarterly results slightly below analyst expectations due to higher input costs. However, brokerages maintained a positive outlook for the company’s earnings in the second half of fiscal year 2026, citing resilient demand and operational efficiency.
RBL Bank jumped 6% following Emirates NBD Bank’s record $3 billion cross-border investment in the private lender, demonstrating growing international investor interest in Indian financial institutions. The transaction reflects confidence in India’s banking sector and its potential for long-term growth.
Analysts noted that India’s stock market continues to attract both domestic and global investors, underpinned by strong corporate earnings, supportive government policies, and steady economic growth.
With key companies delivering positive results, the market is expected to maintain its upward trajectory in the near term, providing attractive opportunities for investors.
Overall, Monday’s session highlighted the resilience and potential of Indian equities, as strong earnings from major corporations, strategic international investments, and positive macroeconomic sentiment created a supportive environment for market growth.
