Indian Benchmarks Rise on Gains in Private Banks After Axis Bank Results

Indian benchmark indices edged higher on Thursday, driven by gains in private banks after Axis Bank’s second-quarter results showed an improvement in asset quality and better-than-expected net interest margins.

As of 10:23 a.m. IST, the Nifty 50 (.NSEI) was up 0.48% at 25,445.60, while the BSE Sensex (.BSESN) rose 0.51% to 83,025.08. Both indices remain about 3%–3.5% below their record highs reached in September 2024.

Out of 16 major sectoral indices, 12 were in the green. The Nifty Private Bank Index (.NIFPVTBNK) gained 0.8%, led by a 3% rise in Axis Bank (AXBK.NS).

Although the private lender posted a larger-than-expected drop in quarterly profit, several analysts highlighted its strong operating performance and improving asset quality as encouraging signs.

The Nifty Smallcap 100 (.NIFSMCP100) and Nifty Midcap 100 (.NIFMDCP100) also gained 0.4% and 0.3%, respectively.

Among heavyweights, HDFC Bank (HDBK.NS) and ICICI Bank (ICBK.NS) each rose 0.6%, while Reliance Industries (RELI.NS) added 0.3%. All three are scheduled to announce their quarterly earnings later this week.

“After the recent tax cuts, the demand outlook for the rest of the fiscal year has improved, and this could mark the beginning of a strong earnings growth cycle, boosting overall sentiment,” said Amanish Agrawal, Director of Research for Institutional Equities at PL Capital.

The Nifty IT Index (.NIFTYIT), however, slipped 0.4%, with shares of Infosys (INFY.NS) down 0.7% ahead of its quarterly results due later in the day.

Among individual stocks, Mangalore Refinery and Petrochemicals (MRPL.NS) rose 2.4% after reporting a quarterly profit following a loss in the same period last year. Oberoi Realty (OEBO.NS) jumped 4.1% after posting a 29% year-on-year rise in second-quarter profit, while Huhtamaki India (HUHT.NS) surged 12% as its quarterly profit tripled.

Westlife Foodworld (WEST.NS) gained 2% after it maintained royalty rates paid to McDonald’s, a move Investec called positive for operating profit and free cash flow.

(Exchange rate: $1 = ₹87.7440)