FPJ News Service mumbai

Encouraging results from major banks supported the market to rebound on Monday after many days of consolidation. Snapping the two-day falling streak, the 30-share BSE Sensex climbed 442.61 points to settle at 82,200.34. During the day, it surged 516.3 points to 82,274.03. The 50-share NSE Nifty jumped 122.30 points to 25,090.70.

“Positive results from banking majors supported the market to rebound after many days of consolidation. The market remains highly reactive to earnings, indicating that investors remain focused on the earnings front to aid valuation. The manufacturing segment gained today as the government is reviewing the scope of expanding the infrastructure spending to support growth,” said Vinod Nair, head of research, Geojit Investments.

“The single most important factor which the market will be focusing on in the coming days will be the outcome of the trade talks between the US and India. If both countries reach an interim trade deal with a tariff rate of less than 20% on India, it would be a positive factor from the market perspective. Weekend Q1 results were good with ICICI Bank reporting the best numbers, particularly in its net profit credit growth.

HDFC Bank has also reported a good set of numbers. Axis Bank’s numbers, however, were disappointing. Flow of institutional funds from some banks to ICICI Bank is a possibility, going forward. RIL’s Q1 numbers were steady with Jio and retail posting good results,” said veteran investment strategist Dr VK Vijayakumar.

Eternal surged the most by 5.38% post its first quarter numbers. ICICI Bank jumped 2.76% after the company posted a 15.9% jump in its consolidated net profit for the June quarter. HDFC Bank climbed 2.19% despite the firm reporting a 1.31% decline in its consolidated net profit. Mahindra & Mahindra, Bharat Electronics, Kotak Mahindra Bank and Tata Motors were also among the gainers. However, Reliance Industries declined 3.29% even after the firm reported its highest-ever quarterly profit of Rs 26,994 crore for the April-June quarter driven by consumer businesses and investment sales.