Major private banks faced significant selling pressure, falling nearly 5% after announcing their April-June quarter results for fiscal 2026-27 (Q1FY27), as reported by NDTV Profit. The NSE Nifty 50 dropped 0.59% or 143.75 points to 24,190.55, while the BSE Sensex declined 0.74% or 581.97 points to 77,569.48 on Monday, July 20. HDFC Bank shares opened at ₹790 against a previous close of ₹819.60, extending losses by up to 5% to hit an intraday low of ₹777.50. Similarly, Axis Bank fell 5.03% to ₹1,261.70 and Kotak Mahindra Bank shares traded 3.06% lower at ₹378.90 on the NSE.
The Nifty 50 ended above its July 8 high, breaking out of its recent trading range and filling the downside gap created during that session, according to latest market analysis. The index closed above the July 7 swing high of 24,531, with higher trading volumes accompanying the move suggesting renewed buying interest ahead of quarterly earnings from major banks. Friday's rally came with the strongest trading volumes in the past six sessions, indicating that buying activity strengthened rather than being driven by a low-volume rebound. The 10-week moving average has provided support for the past five weeks and continues to trend higher, pointing to an improving short-term trend, while the weekly Relative Strength Index stands at 51.55 and is moving higher.
Reliance Infrastructure shares fell 5% to hit the lower circuit limit of ₹63.37 per share in early trade on Monday, according to reports from Essential Business Intelligence. The stock remained locked at the lower circuit limit at 9:21 am, significantly underperforming the broader market. By comparison, the BSE Sensex was down 0.71% at 77,593 during the same period, as reported by NDTV Profit.
The stock decline followed the company's disclosure that the Central Bureau of Investigation (CBI) conducted a search and seizure operation at its registered office in connection with transactions involving Reliance Commercial Finance Ltd. and Reliance Home Finance Ltd., as reported by Essential Business Intelligence. In an exchange filing, Reliance Infrastructure confirmed that the CBI's search and seizure operation at its registered office has concluded. The company stated it and its officials have fully cooperated with the investigating agency and will continue to extend their cooperation.
HDFC Bank disappointed D-Street in terms of net interest margins during the first quarter, with the bank showing lower net interest margins and a sharp decline in other income, according to NDTV Profit. Axis Bank faced steeper NIM compression than expected during the quarter, with NII growth remaining soft, though the bank's deposits are growing faster than industry benchmarks. Kotak Mahindra Bank posted a net profit of ₹4,123 crore in the June quarter, with net profit increasing 26% year-on-year from ₹3,282 crore, beating Bloomberg estimate of ₹3,975 crore. Gross non-performing assets improved to 1.18% of total advances from 1.20% in the preceding quarter, as reported by NDTV Profit.
