Closing Bell: Market Rebounds Strongly From Previous Week's Losses, Sensex & Nifty Gain 1% Each

Indian markets closed in the green on Monday, October 28, snapping a five-day losing streak driven by a rally in banking and metal stocks alongside positive global cues. The Sensex surged by 603 points to end at 80,005, while the Nifty 50 climbed 158 points to settle at 24,339. Midcaps outperformed, with the Nifty Midcap Index gaining 459 points, reaching 55,737, and Nifty Bank advancing by 472 points to close at 51,259. The upbeat trading session marked a recovery as the markets returned to positive sentiment.

Positive trends in global markets supported the Indian indices. Japanese stocks rallied on Monday, fueled by the yen's drop to a three-month low after Prime Minister Shigeru Ishiba's coalition lost its parliamentary majority in Sunday's election.

All major sectoral indices ended in the green, with the Nifty PSU Bank Index leading the gains, surging by 4%. The robust performance in the banking sector was buoyed by Bank of Baroda's impressive September earnings report, which bolstered investor confidence across the sector. The Nifty Metal Index also registered a substantial gain of 2.4%, making it the second top-performing index of the day. Other indices, including Nifty Media, Nifty Realty, and Nifty Pharma, ended the session with gains exceeding 1%.

ICICI Bank and Shriram Finance stood out as top gainers on the Nifty, rising between 3% to 5% following their strong Q2 results. Bank of Baroda climbed by 4%, showcasing its best asset quality in nearly a decade, which drove increased investor interest. BHEL posted a significant rally, surging up to 10% after its Q2 earnings, and closed the day with a 6% gain. Firstsource Solutions also saw a 10% increase after raising its FY25 revenue growth guidance.

Among midcaps, strong Q2 performances by Indian Bank and Arvind led to gains of 10% and 20%, respectively. Paras Defence climbed 4% after reporting a nearly 50% year-on-year increase in Q2 profit. Newly listed Waaree Energies made a stellar debut, closing its first trading day with a 54% gain over its issue price.

Despite the positive trend, a few stocks faced pressure. Coal India took a hit, falling 4.2% after reporting weaker Q2 realisations and rising costs, which dampened investor sentiment. Bajaj Auto continued its downward trend for the third straight session, ending with a 2% drop at Rs 10,000. The auto giant has lost 19% in October, marking its worst monthly decline since March 2020. IndiGo shares slipped to a six-month low, tumbling 8% following a reported loss in its Q2 results. Chola Investment saw a 7% decline as its asset quality deteriorated.

Earnings season brought varied reactions across sectors. Bank of Baroda impressed investors with robust asset quality improvements, pushing its stock up 4%, while CarTrade Tech jumped 6% following a significant 500% rise in Q2 profits. On the other hand, CreditAccess Grameen, Intellect Design, Torrent Pharma, and IDBI Bank saw negative market reactions after reporting underwhelming Q2 results. ITD Cementation also experienced a 7% pullback following news of its promoter planning to sell a 46.64% stake to an Adani Group entity.

With markets recovering from last week's downtrend, analysts are cautiously optimistic about the upcoming sessions. However, global cues, earnings results, and geopolitical developments will likely continue to influence investor sentiment. As the Q2 earnings season progresses, stocks that deliver strong results are expected to lead the market while those with weaker performances may remain under pressure.