The benchmark Sensex surged over 850 points on Friday, July 17, driven by gains in major companies including Reliance Industries, HDFC Bank, and ICICI Bank. The index reached an intraday high of 78,045, marking an increase of more than 1%. The Nifty 50 also climbed over 200 points to reclaim 24,298 during the session.
Market Performance
Despite the strong performance of the benchmark indices, mid and small-cap stocks faced pressure, with the Nifty Midcap 100 and Smallcap 100 indices dropping by up to 1%. Analysts attributed the rise in the Sensex to expectations of strong Q1 results from major companies, including Reliance, HDFC Bank, and ICICI Bank, which are set to report earnings soon. Reliance shares rose over 2%, while HDFC Bank and ICICI Bank saw increases of up to 2% during the session.
Sector Insights
The Bank Nifty index jumped 1%, and the Nifty Private Bank index rose by 1.5%. In contrast, the Nifty PSU Bank index slipped by 0.30%. Analysts from Anand Rathi Share and Stock Brokers noted that the sectoral credit growth for Indian banks remained robust at nearly 17.7% year-on-year, driven by industrial and gold loans. They expect net interest income (NII) for the sector to grow nearly 11% year-on-year in Q1 FY27, with stable asset quality expected, aside from seasonal stress in certain sectors.
The rise in the Sensex is likely to positively affect the banking sector, particularly private banks, as investors anticipate strong earnings reports. This could lead to increased buying in bank stocks, impacting indices like the Nifty Bank and Bank Nifty positively.
Investors will watch for the Q1 earnings reports from Reliance, HDFC Bank, and other major banks scheduled for release on Saturday, July 18.