Indian Stock Market Jumps 400 Points Amid Q1FY26 Earnings

Indian stock market gains 400 pts, with HDFC Bank and ICICI Bank leading the charge. Sensex up 0.41%, Nifty above 25,000. Banking sector stocks perform well after announcing healthy earnings for Q1FY26. Broader markets mixed, with Nifty midcap 100 up 0.34% and Nifty smallcap down 0.19%. Sectorally, Nifty Bank and Nifty Metal show strength, while Nifty PSU Bank and Nifty IT decline.

The Indian stock market gained 400 points on Monday, July 2, 2025, with the Sensex up 0.41% and the Nifty above 25,000. The market was buoyed by strong earnings reports from HDFC Bank and ICICI Bank, which led the charge in the banking sector. The broader markets showed mixed performance, with the Nifty Midcap 100 up 0.34% and the Nifty Smallcap down 0.19%. Sectorally, Nifty Bank and Nifty Metal exhibited strength, while Nifty PSU Bank and Nifty IT declined.

The banking sector stocks performed well after announcing healthy earnings for Q1FY26. HDFC Bank reported a 12% year-on-year growth in its standalone net profit at Rs 18,155 crore [3]. ICICI Bank also reported strong numbers, with its net profit up by 11% year-on-year to Rs 12,300 crore [1]. These positive results boosted investor confidence and drove the market higher.

The broader markets showed mixed performance. While the Nifty Midcap 100 index rose by 0.34%, the Nifty Smallcap index declined by 0.19%. The Nifty Bank index, which includes stocks of major Indian banks, gained 0.55%, while the Nifty Metal index, which includes stocks of metal and mining companies, rose by 0.15%. On the other hand, the Nifty PSU Bank index, which includes stocks of public sector banks, declined by 0.25%, and the Nifty IT index, which includes stocks of information technology companies, fell by 0.35%.

Global markets also provided supportive cues. Wall Street ended higher after upbeat economic data and robust earnings lifted investor confidence. The S&P 500 climbed 0.54% to 6,297.36, the Dow Jones rose 0.52% to 44,484.49, and the Nasdaq Composite added 0.7% to 20,885.65. In Asia, markets offered mixed cues, with the ASX 200 in Australia rising 0.69% and Japan’s Nikkei slipping 0.20%.

Despite the positive start to the week, market analysts anticipate continued consolidation amidst global trade uncertainties and lacklustre Q1FY26 earnings reports [1]. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said, "The single most important factor which the market will be focusing on in the coming days will be the outcome of the trade talks between the US and India. If an interim trade deal between the two countries is reached with a tariff rate of less than 20% on India, that would be a positive from the market perspective."

References:
[1] https://timesofindia.indiatimes.com/business/india-business/stock-market-today-nifty50-bse-sensex-july-21-2025-india-us-trade-deal-donald-trump-tariffs-indian-equities-global-markets/articleshow/122805468.cms
[2] https://www.news18.com/business/markets/stock-market-updates-gift-nifty-hints-a-muted-start-for-sensex-nifty-ril-axis-wipro-q1-in-focus-9447916.html
[3] https://m.economictimes.com/markets/stocks/earnings/hdfc-bank-q1-results-pat-rises-12-yoy-to-rs-18155-crore-bank-announces-11-bonus-issue/articleshow/122780608.cms