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Banking Stocks Support Market Recovery, Reliance Drags Indicators Down

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Business Honor - Banking Stocks Lift Market, Reliance Decline Caps Index Gains - Business Honor

Business Honor
21 July, 2025

ICICI and HDFC Bank support markets recovering as gains are covered by Reliance.

The impressive rise in the equity markets has been prompted by the rise in the stocks of major banks. At first, the NSE Nifty dropped from 67.55 points to 24,900.85, whereas BSE Sensex fell from 148.68 points to 81,609.05. However, the two indices recovered, with the Nifty up 36.75 points at 25,009.10 and the Sensex up 181.30 points to 81,944.67.

After an increase of 15.9% in its total net profit from the last month to ₹13,558 crore, ICICI Bank led the gain, rising more than 2%. Despite a fall of 1.31% in its total profits to ₹16,258 crore, HDFC Bank experienced an improvement of over 2%. Eternal, Bajaj Finance, UltraTech Cement, and Tata Steel were amongst the other top beneficiaries. However, the overall gains were limited by losses in businesses like Reliance Industries, Infosys, Tech Mahindra, HCL Technologies, TCS, and Mahindra & Mahindra. Even after the highest quarterly earnings of ₹26,994 crore, a 78.3% gain from the previous year, Reliance dropped by around 2%.

The trade discussions between the United States and India are currently being followed by investors. According to analysts, a good result—particularly one that maintains tariffs at 20%—could enhance market conditions further. This quarter, ICICI Bank's strong performance was notable. Overall, VK Vijayakumar, chief investment strategist at Geojit Investments, stated that the market waits for signs from developments in international trade. Markets could hit a record high before the year is out if trade developments remain favorable and earnings continue to be strong.