The Sensex surged 454.11 points (0.59%) to close at 77,073.44, while the Nifty climbed 141.55 points (0.61%) to settle at 23,344.75. This rise was fueled by a strong performance in the banking sector, led by Kotak Mahindra Bank and Wipro, which reported better-than-expected Q3 results.
Despite the rally, Nifty Auto and FMCG stocks remained in the red, while mid-cap and small-cap indices recovered from early losses to close with gains of 1.1% and 0.9%, respectively. However, both indices remain well below their September highs, down 12% and 11%, respectively, from their peaks.
Impact on the stock market
The banking sector took center stage, with Nifty Bank gaining 1.6% and PSU Bank Index rising 2.3%. Kotak Mahindra Bank’s stellar 9% gain was the highlight, following a 10% rise in net profit to ₹4,701.02 crore in Q3FY25.
Other notable performers:
- Metal Index rose over 1%, driven by Vedanta, Adani Enterprises, and JSW Steel.
- IT Index gained, supported by Wipro’s 6.5% surge on strong Q3 earnings.
- Oil & Gas and Consumer Durables saw moderate gains.
- Realty and Pharma indices added up to 0.8%.
However, FMCG and Auto stocks remained weak, with profit booking dragging them down.
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| Sector/Index | Performance |
| IT & BPM sector | +0.38% |
| Healthcare sector | +0.57% |
| Oil & Gas sector | +0.61% |
| Real estate sector | +0.65% |
| PSU Bank in India | +1.99% |
Top gainers today
| Company | Price | Change % |
| Kotak Mahindra Share Price | 1,920.50 | +9.21 |
| Wipro Share Price | 300.25 | +6.49 |
| Bajaj Finance Share Price | 7,440.10 | +3.59 |
| Bajaj Finserv Share Price | 1,735.20 | +3.25 |
| NTPC Share Price | 336.05 | +3.04 |
Top losers today
| Company | Price | Change % |
| SBI Life Insura Share Price | 1,499.70 | -2.65 |
| Trent Share Price | 6,090.00 | -2.04 |
| Shriram Finance Share Price | 516.70 | -1.86 |
| Adani Ports Share Price | 1,148.70 | -1.27 |
| HDFC Life Share Price | 634.05 | -1.27 |
Market aftermath: Impact on stocks
Kotak Mahindra Bank surges 9% on strong Q3 earnings
Kotak Mahindra Bank was the top gainer on Nifty, rising 9% after receiving multiple upgrades from brokerage firms. The bank posted a 10% YoY increase in net profit, reaching ₹4,701.02 crore in Q3FY25. The positive earnings show helped boost overall banking stocks.
IDBI Bank jumps 31% in net profit
IDBI Bank posted a strong 31% increase in net profit, reaching ₹1,908 crore for Q3FY25. The total income rose to ₹8,564.92 crore, while Net Interest Income (NII) surged 23.1% YoY to ₹4,228 crore. The bank’s asset quality also improved, with gross NPA moderating to 3.57% from 4.69%.
Also read: IDBI Bank surges on getting nod for issuance of Long Term
Supreme Industries drops 4% after weak Q3 results
Shares of Supreme Industries fell 4% following a disappointing Q3FY25 performance. The company reported a 27% YoY drop in net profit, with EBITDA declining 18.5%, leading to a contraction in margins from 15.5% to 12.3%.
Crude oil futures rise on strong Chinese economic data
Crude oil futures traded flat on Monday as markets awaited Donald Trump’s inauguration as U.S. President. March Brent oil futures stood at $80.76 per barrel, while WTI crude was at $77.42.
Key factors impacting oil prices:
- Market uncertainty surrounding Trump’s planned executive orders.
- US sanctions on Russian oil potentially affecting global supply.
- Freezing weather conditions in Texas and New Mexico could disrupt production.
- The US crude oil production remains at 13 million barrels per day.
Conclusion
The Indian stock market had a positive trading session on January 20, 2024, with banking stocks leading the way. While Kotak Mahindra Bank and Supreme Industries’ weak results triggered a decline in its stock. Investors should remain cautious as mid-cap and small-cap valuations remain stretched, and global factors, including oil prices and US policies, could influence the market’s direction in the coming weeks. The upcoming earnings reports from ICICI Bank will also be key market drivers.
For more stock market insights, check out the StockGro blog.
