Sensex gains 400 pts, Nifty reclaims 26,000: Improving earnings outlook among key factors behind market rise

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Stock market today: Sensex, Nifty rose amid strong buying in financials on the back of healthy September earnings performance by corporates.

Sensex, Nifty rise amid strong buying by investors. 

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The equity benchmark indices traded higher on Monday, supported by gains in index heavyweights and steady corporate earnings for the September quarter.

At around 2:15 p.m., the Sensex rose 386.43 points or 0.46 percent to 84,949.21, while the broader Nifty advanced to 26,019.80, up 109.75 points or 0.42 percent.

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Shriram Finance, Bajaj Auto, Axis Bank, Kotak Mahindra Bank and Bajaj Finance were the top gainers, rising up to 2 percent. Market breadth was also positive as about 2056 shares advanced, 1542 shares declined and 192 shares unchanged.

Strong buying was also seen in the broader markets as they extended their rise to the second consecutive session. The Nifty midcap100 rose more than half a percentage points, while the Nifty smallcap100 was up 0.62 percent.

Key factors behind market rise

1) Banking stocks drive gains: Bank Nifty scaled yet another record high on Monday, extending its winning streak and gaining further strength. The index hit an intraday peak of 58,968.65 in the morning trade, rising 0.8 percent and adding 451 points from the previous close. The rally in Bank Nifty was broad-based, with all 12 constituents trading in the green.

The gains come after RBI opened a special window for export-oriented industries, allowing eligible borrowers to avail a moratorium on payment of all installments due between September 1 and December 31, 2025. “While the measures allayed concerns on export-related sectors, they could also benefit lenders,” analysts at ICICI Securities Jai Prakash Mundhra and Hardik Shah, said in a note.

Canara Bank stock led gains, rising 2.55 percent to Rs 149.8, followed by AU Small Finance Bank which jumped 2.54 percent to Rs 913.25. IDFC First Bank advanced 2.3 percent to Rs 82.28, while Punjab National Bank gained 1.84 percent to Rs 124.46. Bank of Baroda was up 1.83 percent at Rs 292.

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Bank Nifty hits fresh record high today, climbs above 58,900; strong technical momentum shows more upside

2) Bihar election results: Investor sentiment improved after the ruling establishment registered a sweeping victory in the Bihar assembly elections, which analysts said pointed to continued policy stability.

Motilal Oswal Financial Services said the Bihar results will help to further boost the sentiment of equity markets, in our view. Importantly, the results have coincided with several other enabling factors, such as a cavalry of reforms and growth stimulative measures from the RBI/GoI, improving the earnings environment, a focus on demand stimulation, a 1 yr+ underperformance of Indian equities (Nifty down 1% since Sep’24 vs. 20% gains for MSCI EM) and a sharp FII selloff (USD27.7b since Sep’24). All these factors, in our view, create a strong blend for a likely stable uptrend for Indian equities.

2025 Bihar assembly results definitely carry some tectonic socio-economic and political repercussions for its population and economy – this will play out in the long term. In the short term, the market will see it as a good policy and sentiment booster, affording the ruling NDA coalition to operate with greater freedom and flexibility to carry out growth-positive agenda. After the initial reaction to this event, the market’s focus will shift back to near-term events, especially the evidence of sustenance of GST2.0-driven consumption boost, further RBI policy moves, macro parameters, and most importantly the corporate earnings growth trend.

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3) Q2 earnings in focus: The September quarter earnings were good, which have boosted the overall sentiment of the investors.

“The quarterly earnings season has concluded on a healthy note, with mid-caps outperforming large-caps and small-caps,” said analysts at Motilal Oswal Financial Services on Monday. The large-cap Nifty 50 is currently trading about 1.2% below the all-time high level of 26,277.37, touched in September 2024, while small-caps are 0.7% below their record high levels. “For the second half of fiscal year 2026, we expect overall earnings to improve further, helped by a cavalry of measures by the government to boost consumption and reset the trajectory of earnings.” the Motilal Oswal analysts added.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said earnings declared so far indicate an improving trend. “Net profits have grown by 10.8 per cent, the best in the last six quarters,” he said, adding that consumption trends point to further improvement in the third quarter, led by discretionary spending, particularly automobiles.

4) Global development: U.S. President Donald Trump has removed tariffs on more than 200 food items amid concerns over rising grocery prices.

Technical view

According to Anand James, Chief Market Strategist at Geojit Financial Services, Nifty patterns and oscillators suggest room to hold the 26,130–26,550 range. He said a sideways start is likely, and failure to stay above 26,130 after an early uptick, or a drop below 25,840, could signal weakening momentum.

(Inputs from Reuters)

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