Small- and mid-cap bank stocks emerged as standout performers on Tuesday, rallying up to 7% amid heavy volume trading on healthy Q1 earnings. According to Business Standard, Tamilnad Mercantile Bank, ESAF Small Finance Bank, Equitas Small Finance Bank and CSB Bank were up in the range of 2% to 5% on the BSE in an otherwise tepid market. Jana Small Finance Bank hit a 52-week high of ₹569.65, soaring 7% on the BSE, with the stock rallying 15% in the past one week compared to a 0.11% decline in the BSE Sensex. IndusInd Bank and Indian Overseas Bank were up 3% each, while the BSE Sensex was down 0.3% at 77,472 at 11:31 AM. The rally was driven by strong quarterly results across the sector, with Karur Vysya Bank share price jumping 11% to ₹335.50 after reporting Q1FY27 profit after tax at ₹760 crore, up 45% year-on-year.
Jio Financial Services share price surged more than 6% by midday after the company reported a stellar set of Q1 FY27 earnings, supported by robust growth across its investing and lending businesses. As reported by The Financial Express, consolidated net profit jumped 155% year-on-year to ₹830 crore, while revenue from operations rose 227% to ₹2,004 crore. The company's performance was driven by strong growth across multiple segments, with interest income rising 165% YoY to ₹962 crore and fees and commission income more than fivefold increase to ₹325 crore. The stock was trading around ₹244.40, up 3.7% with a market capitalisation of ₹1.61 lakh crore, though it remains 28% below its 52-week high of ₹338.45 touched on August 5, 2025. Quarterly loan disbursements increased 2.7 times year-on-year to ₹11,252 crore, while Assets Under Management (AUM) of Jio Credit Limited expanded to ₹30,667 crore, highlighting strong demand for its credit products. The company continued its expansion into high-growth financial services, with Jio Payments Bank launching FASTag ANPR-based toll payment solutions and JioBlackRock AMC expanding investment offerings.
Tech Mahindra Ltd. share price climbed as much as 3.96% by midday after the company reported a strong June-quarter performance that reinforced optimism around its growth outlook. According to The Financial Express, consolidated net profit increased 28.4% year-on-year to ₹1,465 crore, while revenue from operations rose 17.6% from the corresponding quarter last year to ₹15,712 crore. On a sequential basis, revenue grew 4.2%, supported by broad-based demand across manufacturing, financial services, healthcare and retail. EBIT increased 9.2% quarter-on-quarter to ₹2,264 crore, while the EBIT margin improved by 70 basis points to 14.4%. The broader IT sector rally was supported by healthy earnings from Tech Mahindra, constructive management commentary from several large companies and a series of multi-million-dollar deal wins announced by Tata Consultancy Services. As per Dalal Street Investment Journal, the Nifty IT index gained 1.15% after Tech Mahindra delivered better than expected quarterly numbers and HCL Technologies announced a seven-year contract.
Karur Vysya Bank emerged as a standout performer, with share price jumping 11% to ₹335.50 after the bank reported yet another strong quarter with June 2026 quarter (Q1FY27) profit after tax at ₹760 crore, up 45% year-on-year. According to Business Standard, the average trading volume at the counter jumped 18-fold with a combined nearly 50 million shares changing hands on the NSE and BSE. The bank maintained its guidance of 100-200 bps above industry growth but cautioned it may not chase low-yielding corporate loans. Q1FY27 NIM stood at 4.26% (up 1bps QoQ), with the bank expecting Q2FY27 NIM at >4%. The bank had given net interest margin (NIM) guidance of 3.75-3.8 per cent for FY27 (vs. 3.97% in FY26) and will re-look at FY27 NIM guidance at the end of Q2FY27. ICICI Securities noted that the bank expects Q2FY27 NIM at >4% based on current situation.
Federal Bank emerged as a standout performer, closing 6.55% higher and hitting a 52-week high following its Q1 result announcement. According to The Financial Express, Federal Bank reported a 36.57% year-on-year surge in its standalone net profit to ₹1,176.93 crore during the quarter under review, compared with ₹861.75 crore in Q1 FY26. Other notable gainers included Kalyan Jewellers India (4.74%), Bharat Forge (4.29%), Exide Industries (3.25%) and ICICI Prudential Asset Management Company (2.89%). On the downside, Hindalco Industries (-1.49%), Dr. Reddy's Laboratories (-1.15%), Wipro (-1.04%), Sun Pharmaceutical Industries (-0.83%) and Apollo Hospitals Enterprise (-0.77%) were among the top losers. WeWork India Management shares were under pressure, with the scrip plunging as much as 6% on the last trading day of the week. According to The Financial Express, WeWork India's consolidated net loss narrowed to ₹4.3 crore in the June quarter of FY27, as compared to a net loss of ₹14.1 crore in the June quarter of FY26. PC Jeweller declined around 6% by midday after the company announced plans to raise up to ₹1,000 crore through a Qualified Institutions Placement and approved an increase in its authorised share capital from ₹1,310 crore to ₹1,460 crore by creating an additional 150 crore equity shares.
