Indian benchmark indices opened higher on Tuesday, with NSE Nifty 50 trading at 24,453.80, up 23.45 points (0.10%) from Monday's close of 24,430.35. According to The Hindu BusinessLine, the BSE Sensex opened at 78,461.16 against its previous close of 78,285.07 and was trading at 78,345.45, gaining 60.38 points (0.08%) as of 9:25 AM. Monday's session saw the Nifty advance 159 points (0.66%) to close at 24,430, while the Sensex gained 521 points, marking a fourth consecutive session of gains. The rally was broad-based, led by banking, auto, realty and metal stocks, even as IT shares remained under pressure. The positive momentum was driven by strong foreign institutional buying, gains in banking stocks, and Brent crude slipping near four-month lows after OPEC+ agreed to raise production targets. As per The Economic Times, the Nifty Bank index rose over 400 points on Monday, gaining nearly 1% to reach 58,376 and snapping a two-session losing streak.
HDFC Bank emerged as the top gainer after reporting healthy growth in advances and deposits, as noted by JM Financial. The bank reported robust loan growth, marginally ahead of estimates, while deposit growth was in line. According to Motilal Oswal, the CD ratio increased to 95.8% versus 94.6% in Q4 FY26, with margins expected to contract slightly this quarter. JM Financial highlighted that HDFC Bank reported healthy deposit mobilisation, contributing significantly to the banking sector's positive momentum. Morgan Stanley noted that HDFC Bank saw an acceleration in loan growth, with the brokerage highlighting that credit growth, auto sales and property data were stronger than expected, while nominal GDP growth of 12–12.5% should support revenue growth. In early trading, HDFC Bank gained 1.85% among the top performers on Nifty.
Kotak Mahindra Bank faced headwinds despite Q1 loan growth remaining largely in line with estimates, as reported by Motilal Oswal. The bank's deposits surprised negatively amid a sharp decline in CASA, resulting in the CD ratio increasing to 89.4% versus 86.6% in Q4 FY26. JM Financial noted that Kotak Mahindra Bank reported relatively weaker deposit mobilisation, contributing to the stock's significant decline. Morgan Stanley indicated that Kotak Mahindra Bank saw moderation in loan and deposit growth, with the brokerage noting that deposit momentum improved at IDFC First Bank and IndusInd Bank instead. The latest data shows Bank Nifty rose as much as 0.75% to 58,373 points, with the rally led by major banking stocks including HDFC Bank rising as much as 3.21%, Axis Bank gaining 1.86%, and AU Small Finance Bank advancing 1.24%.
According to The Times of India, ICICI Bank, LIC, HDFC Bank and Hindustan Unilever also posted gains in market value during Monday's trading session. The Economic Times reports that ICICI Bank, Axis Bank, Federal Bank, State Bank of India and Yes Bank shares gained up to 1% during early trading. Yes Bank particularly stood out with strong performance after reporting Q1 advances rise 18% to ₹2.85 lakh crore and deposits up 14%. Meanwhile, Canara Bank, Union Bank of India, Punjab National Bank and Bank of Baroda shares traded in the red with marginal losses. The mixed performance across PSU and private banks reflected selective investor interest in specific banking segments. Outlook Business reports that financial stocks provided the biggest support to benchmark indices, with Axis Bank climbing 1.77% and ICICI Bank advancing 1.28% among the early gainers.
As reported by The Economic Times, the Nifty Bank index is likely to see resistance at 58,500–58,800, with a sustained move above this zone expected to reignite the primary uptrend. On the downside, the banking index is expected to find support at 57,000–56,500 zone. The analyst noted that despite consolidation, the broader structure remains constructive as Bank Nifty continues to hold above the breakout zone of the April month swing high around 57,500. Momentum indicator RSI has cooled off towards the 60 mark, creating room for the next leg of the upmove to unfold. Citi expects bank EPS growth at 10% in FY26 and 14% in FY27, with FY27 margin expectations seen as reasonable and nearly flat year-on-year. According to VK Vijayakumar from Geojit Investments, banks are expected to report stronger-than-expected earnings, supported by robust credit growth of around 17%, while NBFCs focused on gold loans and consumer finance could deliver revenue and profit growth of around 20%. For Nifty, analysts say the 24,500 mark remains the immediate resistance with a breakout potentially opening the path to 24,600–24,750, while on the downside, 24,350 and 24,200 are key support levels.
