Sensex, Nifty gain over 1.3 per cent; Nifty Bank at record high

Since April 9, the Sensex and the Nifty have gained nearly 8 per cent.

On Monday, the Bank Nifty also gained 2.05 per cent to a fresh record high of 55,453.55 in afternoon trades. The last time the banking index had touched a record high of 54,467.35 was on September 26, 2024.

“Even though the global economic scenario is mired in uncertainty, India appears relatively resilient. India is the only large economy which can grow at 6 per cent even in a slowing global economy. This, along with the declining dollar, has the potential to attract more FPI inflows into India in the short run,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

During the last two trading sessions (April 16 and 17), overseas investors bought Rs 10,824.29 crore worth of domestic stocks, according to the National Securities Depository Ltd (NSDL) data.

This buying from overseas investors came after they net sold Rs 33,927 crore of local shares between April 1 and 15. The reversal in FPIs strategy is driven by depreciating dollar on account of growth concerns in the US after President Donald Trump announced to levy reciprocal tariffs on its trading partners, and on escalating trade wars.

“The focus of the FIIs will be the domestic consumption themes like financials, telecom, aviation, hotels, select autos, real estate, cement and health care. Growth stocks in the digital space also have the potential to move up. IT will continue to be under pressure since the growth outlook for the sector is bleak due to the expected sharp slowdown in the US economy,” Vijayakumar said.

Last week, HDFC Bank and ICICI Bank posted quarterly results that were above market expectations. HDFC Bank reported a 6.7 per cent growth in standalone profit after tax (PAT) at Rs 17,616.14 crore, while ICICI Bank’s standalone net profit jumped 18 per cent to Rs 12,630 crore in the quarter ended March 2025.

“Large private banks have taken the lead, surging to new all-time highs. Their quarterly results over the weekend aligned with market expectations and will continue to drive markets higher,” said Devarsh Vakil, Head of Prime Research at HDFC Securities.

All broad market indices were trading in green, with Nifty Midcap 100 rising 2.4 per cent and Nifty Smallcap 100 gaining 2.02 in the afternoon trades.

Among the Nifty companies, the stocks that gained the most included Tech Mahindra (6.18 per cent), Indusind Bank (4.69 per cent), Bajaj Finserv (3.99 per cent), HCL Technologies (3.92 per cent), and HDFC Bank (1.22 per cent).