Indian equity markets opened on a positive note Thursday, with both the Sensex and Nifty indices showing significant gains. The S&P BSE Sensex was trading at 82,945, up by 340 points or 0.41 percent. The NSE Nifty 50 was at 25,428, gaining 105 points or 0.41 percent.
Market Drivers
The positive market sentiment is attributed to several factors, including optimism surrounding a domestic earnings rebound and consistent foreign capital inflows. Expectations of a potential rate cut by the Reserve Bank of India (RBI) and falling crude oil prices have further fueled the bullish trend.
Top Gainers and Losers
Among the Sensex stocks, Axis Bank, Adani Ports, Titan, Kotak Bank, M&M, Eternal, BEL, Tata Motors, NTPC, and HCL Tech were the top gainers. Conversely, Infosys, Tech M, TCS, Tata Steel, and Sun Pharma experienced losses.
Sectoral Performance
The Nifty Auto and Nifty Private Bank indices each rose by 0.8 percent, leading the sectoral gains. The Nifty Realty index also saw a substantial increase of 0.6 percent. The Nifty IT index was the only index in the red, down 0.14 percent.
Broader Market Trends
The Nifty MidCap index increased by 0.23 percent, while the Nifty SmallCap index saw a gain of 0.56 percent, indicating positive sentiment across the broader market.
Axis Bank's Performance
Axis Bank's stock price surged nearly 3%. The surge follows the announcement of the bank's Q2FY26 results, which revealed a 26% year-on-year drop in net profit to Rs 5,090 crore. However, the street seems to be focusing on the strong operational performance and fueling the surge in the share price. The bank's net interest margins (NIM) shrank to 3.73% in Q2 FY26, down from 3.8% in Q1 FY26 and 4% in the year-ago quarter, impacted by the Reserve Bank of India's rate cuts. Provisions and contingencies also rose 61% YoY to Rs 3,547 crore. Despite these challenges, Axis Bank's total income increased by 1% YoY to Rs 37,595 crore in Q2FY26.
Analysts' Views on Axis Bank
Nuvama Wealth Management has maintained a 'Hold' call on Axis Bank, with a target price of Rs 1,180. While loan growth exceeded expectations, driven mainly by corporate lending, the brokerage has expressed concerns over repeated volatility in credit costs and a weak loan mix. Nuvama suggested switching to ICICI Bank for a more sustainable business model and higher CASA growth.
Market Outlook
According to Rupak De, a Senior Technical Analyst at LKP Securities, the Nifty 50 experienced a significant rise, overcoming the pessimism from the prior session. The index successfully finished above the resistance range of 25,250–25,300 and seems to be comfortably trading above the 21-EMA (25,061), suggesting a bullish momentum. In the near term, the index could potentially reach 25,500–25,600. Conversely, a drop below 25,250 could lead to a short-term correction.
