Sensex in Green; Banking Stocks Perform Well

Bouncing back from early losses, the equity markets closed with decent gains led by advances in banking names on Monday, October 25. The BSE Sensex closed with a gain of 145.43 points at 60,967.05, and the key index Nifty-50 closed at 18,125.40, up 10.50 points.

The 30-share pack Sensex witnessed buying in eight of its constituents while 22 counters ended in the red amid volatility across the board.  Shares of ICICI Bank and Axis Bank were the top gainers, whereas on the flipside, Bajaj Finserv and Bajaj Auto dipped over three and two per cent, respectively.

Sectorally, the Nifty Banking counter clearly outperformed in the markets today amid volatility seen in other sectors. The index closed higher by two per cent nearing 41,200. Shares of ICICI Bank surged 10 per cent in the intraday session post Q2 earnings. The Bank's Net profit grew 30 per cent at Rs 5,511 crore. Axis Bank, RBL Bank, and PNB were other top gainers, up 2-3 per cent each.

On the other hand, the IT pack continued to slide further, while Auto and FMCG also joined the party. The counters closed lower by a per cent each in the day's trade as market participants refrained from taking any new positions, said experts. 

Selling in the broader markets intensified further, dragging both BSE Midcap and Smallcap counters down a per cent each on Monday. Experts are of a view that the ongoing correction is mainly due to the strong rally so far in the year that drove the valuations of stocks to unexpected levels. 

So far YTD (year-to-date), the BSE Midcap has surged 40 per cent and the Smallcap index has climbed 53 per cent. Whereas the headline BSE Sensex has gained 27 per cent in the same period. 

Moving ahead, the week will turn out to be a busy one on the D-street as IPOs of Nykaa and Fino Payments Back will open for subscription on October 28 and October 29, respectively. Markets will also react to global cues in the coming days, experts said. 

Overall, in the markets today, 971 shares advanced, 2276 shares declined, and 174 shares closed unchanged.