Indian equity markets staged a recovery with the Sensex gaining 550 points in midday trade while the Nifty held firm above 22,700, supported by softer-than-expected US jobs data and moderation in crude oil prices. According to The Financial Express, the markets are picking pace after a steady start, with the small and midcaps also seeing steady buying but the real action is in individual counters driven primarily by growth drivers like Q2 business updates. Vedanta, Kotak Mahindra Bank, Marico, Axis Bank, Trent, Zydus Lifesciences and other stocks are likely to remain in focus following key corporate developments and business updates. The overall sentiment in the market remains cautiously optimistic amid external economic influences, with the GIFT Nifty trading around 22,663, up nearly 81 points from the previous close, indicating a firm opening for domestic equities.
Several companies reported their June quarter financial results today, showing mixed performance across sectors. Rentomojo experienced a 38.6% decline in profit to ₹7.8 crore compared to ₹12.8 crore in the previous year, while revenue surged 51.1% to ₹126.3 crore from ₹83.6 crore. The company also recorded an exceptional loss of ₹11.36 crore versus nil in the previous year, with tax expenses standing at ₹2.7 crore versus nil. Steamhouse India demonstrated strong growth with profit jumping 80.2% to ₹18.3 crore from ₹10.2 crore, while revenue grew 13.3% to ₹128.6 crore from ₹113.5 crore. Steamhouse India's Q2 results showed revenue down 7.1% to ₹128.6 crore but EBITDA up 17% to ₹30.9 crore with margin improving to 24% from 19.1%.
Major banking institutions reported robust growth in their June quarter results, with brokerages maintaining positive outlook across the sector. Kotak Mahindra Bank demonstrated exceptional performance with net advances jumping 24.7% year-on-year to ₹5.77 lakh crore from ₹4.62 lakh crore, while CASA deposits increased 11.3% to ₹2.49 lakh crore from ₹2.23 lakh crore and total deposits grew 23.2% to ₹6.51 lakh crore from ₹5.28 lakh crore. Kotak Mahindra Bank shares jumped 4% in intra-day trade following the strong quarterly performance, with FCNR(B) deposits totalling $5.78 billion and leverage of $1.68 billion. Kotak Mahindra Bank received a Buy rating from Goldman Sachs with a target price of ₹540, upgraded from ₹509, highlighting strong FCNR(B) deposit mobilization and organic loan growth accelerating to 19% YoY. IndusInd Bank also showed positive momentum with net advances increasing 11.2% to ₹3.62 lakh crore from ₹3.25 lakh crore YoY, while deposits grew 10.1% to ₹4.29 lakh crore from ₹3.89 lakh crore, though the CASA ratio fell to 28% from 30.7%. Axis Bank shares gained 1.5% following the strong quarterly performance, with Goldman Sachs maintaining a Buy rating on Axis Bank with a target price of ₹1477.
Several sectors witnessed significant movements driven by specific factors. Sugar sector stocks surged as sugar futures globally rose to 19-month highs due to weather disruptions from El Nino and a weakening Brazilian Real, with upcoming festive demand in India supporting sentiment. Meesho shares gained strongly after Jefferies assigned a 'Buy' rating with a target price of ₹240 a share, implying 10% upside potential. The management believes the addressable market remains substantial, with value-commerce still underpenetrated relative to its long-term potential, as per Jefferies. User growth expanded 30% YoY while sellers increased 80% over the last 12 months, highlighting continued ecosystem deepening, with over 85% of users originating beyond the top eight cities. Trent shares surged 13% intra-day on strong Q2 updates, with the company adding 30 stores in Q2 to reach total fashion format store count of 1,342, up 22% YoY. Westside added 10 net stores (311 total, up 19% YoY) while Zudio witnessed 17 net store openings (999 stores, up 24% YoY).
Several companies provided strong business updates during the quarter. Trent reported standalone revenue up 23% YoY to ₹5,788 crore with the addition of 30 stores in Q2, bringing total store count to 1,342 as of September 30, 2026. Trent shares surged 11% following the strong quarterly performance. Godrej Consumer Products expects another strong quarter in Q2 with consolidated revenue growth seen in high teens and volume growth in high single digits. Metropolis Health showed revenue up 15% YoY driven by double-digit growth in patient and test volumes, with TruHealth Wellness and Specialty segments emerging as fastest-growing businesses. AWL Agri Business delivered robust performance with volume growth up 12% YoY and revenue growth up 24% YoY in Q2, with food & FMCG revenue growth up 33% YoY. SRIT India and Shah Investor's Home are set to list today, with SRIT India IPO subscribed 125.16 times and Shah Investor's Home subscribed 38.12 times. Sterlite Technologies shares added 3% as Nomura initiated Buy with a target price of ₹1,350/share, citing strong industry tailwinds expected to drive robust growth, with revenue and EBITDA expected to grow at 50% and 89% CAGR, respectively, over FY26-29. Tata Steel developed a hot-rolled, fire-resistant E350 structural steel that can retain two-thirds of its room-temperature yield strength at 600°C for up to three hours. HAL is set to establish a second production line for the Shakti engine at its Koraput facility in Odisha.
