Mumbai: Stock market didn’t just hold steady on Monday—it powered ahead, right through the afternoon. Usually, things slow down after 3 PM, but not this time. Instead, trading picked up even more steam. Banking stocks, strong Q2 numbers, and signs of political stability all came together to spark a broad rally.
By the closing bell, the Sensex had jumped 388 points, landing at 84,951. Nifty added 103 points to finish at 26,013. The Midcap Index soared by 445 points to a record 61,180, and Bank Nifty notched a fresh intraday all-time high before settling at 58,963.
Banks really stole the show. Bank Nifty crossed 58,968 and gained almost 0.8 percent, with every single one of its 12 component stocks trading higher. This surge followed the RBI’s decision to offer a special moratorium for export-oriented industries, letting them defer EMIs from September through December.
That move took the edge off worries about loan stress in export sectors, so investors felt good about banking shares. Top performers included Canara Bank, AU Small Finance Bank, IDFC First Bank, Punjab National Bank, and Bank of Baroda.
Another big boost came from Bihar’s election results. The NDA scored a clear win, which investors see as a sign of policy continuity and ongoing reforms—both good news for economic stability.
Motilal Oswal pointed out that this result could turn market sentiment around, especially since Indian stocks have lagged behind MSCI EM for a while now. The newfound political clarity might be just what the recovery needs.
Earnings season also delivered. Strong Q2 results, especially in midcap and smallcap stocks, put traders in an even better mood. Motilal Oswal noted that midcaps have been outperforming lately, while Nifty sits just 1.2 percent shy of an all-time high.
Geojit’s V.K. Vijayakumar highlighted a 10.8% jump in net profits—the best in six quarters—thanks mostly to discretionary sectors like autos, which look set for a strong Q3 as well.
Then there was a lift from global news. US President Donald Trump scrapped tariffs on more than 200 food items to fight inflation, which helped boost Asian markets too. All in all, it was a day full of momentum for Mumbai’s bulls.
