The Indian stock market ended the week on a strong note, with benchmark indices scaling fresh 52-week highs, driven by robust Q2 earnings, positive FII-DII flows, and strong performance from the banking and metal sectors.
On Friday, the Sensex touched a fresh 52-week high of 84,172, while the Nifty reached 25,781. The Bank Nifty also achieved a significant milestone, crossing the 25,700 mark for the first time since October 2024, supported by strong results from major banks like HDFC Bank, ICICI Bank, and PNB.
Banking stocks continued to dominate as investors reacted positively to improving asset quality and the RBI’s dovish tone.
The RBI hinted at a possible rate cut in December, sparking a rally in financial stocks. Additionally, the central bank’s liquidity injection helped ease short-term rates, adding momentum to credit growth expectations.
Key Banking Results:
- HDFC Bank: Q2 net profit jumped 11% YoY to ₹18,641 crore, supported by a 5% rise in NII.
- ICICI Bank: Reported a 5.2% YoY rise in net profit to ₹12,359 crore, with NII growth of 7.4%.
- IDFC First Bank: Surprised the market with a 75.5% YoY surge in profit to ₹352 crore.
- PNB: Posted 14% YoY profit growth to ₹4,904 crore, supported by improving NPA metrics.
- Canara Bank: Increased its stake in Canara Robeco and showed improved earnings momentum.
- Central Bank: Reported a jump in profit, lower provisions, and a reduction in both gross and net NPA, signaling a strong turnaround.
- Ujjivan SFB and AU Small Finance Bank showed mixed results — profitability declined but asset quality remained stable.
- DCB Bank and Vaishya Bank both reported higher profits and reduced NPAs, reflecting sectoral resilience.
Foreign Institutional Investors (FIIs) bought ₹997 crore, while Domestic Institutional Investors (DIIs) purchased ₹4,076 crore, indicating strong local participation.
Global sentiment was slightly cautious as regional US banks like Zions and Western Alliance Bancorp came under pressure due to bad loans, sparking fears of financial stress in smaller American lenders.
Meanwhile, crude oil prices dropped to US $61 per barrel following a two-hour conversation between US President Donald Trump and Russian President Vladimir Putin earlier in the week, hinting at coordinated energy policy discussions.
The fall in crude prices is expected to benefit India’s inflation outlook and corporate margins, particularly for energy-intensive industries.
The day saw a flood of Q2 earnings, acquisitions, and new contracts that lifted overall market sentiment:
Strong Performers:
- Sun Tech Realty and Waaree Energies delivered solid results with growth in profit, revenue, and margins.
- Kalpataru Projects reported 19% YoY growth in free sales to ₹1,329 crore and 37% rise in collections to ₹1,162 crore.
- JK Paper confirmed its acquisition of Borkar Packaging will be completed within six months.
- BEML signed a pact with Kineco for advanced aerospace composites manufacturing.
- Central Bank partnered with Godrej Housing Finance, expanding its retail lending reach.
- Whirlpool India surged 10% after signing five long-term agreements with its parent company, covering brand licensing, technology, and royalties till 2029.
- JSW Steel’s quarterly profit jumped fourfold to ₹1,623 crore, with margins at 15.8%.
- JSW Energy secured an LOA from Karnataka Power Company to supply 420 MW for 25 years, starting April 2026.
- M&M tied up with Embrace to launch the C-390 Millennium aircraft in India.
Key Contract Wins:
- L&T: ₹3,000 crore contract for Gujarat metro rail expansion.
- BEL: ₹2,500 crore defense order from the Ministry of Defence.
- Adani Ports: ₹1,200 crore MoU for Tamil Nadu logistics hub.
- Tata Power: ₹1,000 crore solar EPC contract in Rajasthan.
- Ashok Leyland: ₹800 crore Army logistics vehicle order.
- BHEL: ₹1,500 crore thermal power equipment order.
- Infosys: $250 million IT services deal with a European bank.
- Wipro: $100 million cloud transformation deal.
- TCS: $500 million multi-year insurance contract.
- Zomato: Acquired a logistics startup for ₹350 crore to boost delivery capabilities.
- Dixon Technologies, Polycab, Havells, and Kajaria Ceramics posted strong results with profit, income, and margin growth — signaling robust manufacturing momentum.
- Rallis India, Swaraj Engines, TTK Healthcare, and Dalmia Bharat reported positive results; Dalmia Bharat announced a ₹4 dividend.
- Sterling Wilson slipped into loss despite higher revenue.
- PVR Inox returned to profitability after several weak quarters, with improved margins and income.
- Metro Brands saw profit decline but higher income, indicating cost pressures.
- Heritage Foods and CIE Automotive reported higher revenue but shrinking margins.
- Hindustan Zinc reported ₹8,282 crore in revenue and ₹2,649 crore in profit — stable results amid softer commodity prices.
Market experts remain optimistic for the coming week, citing strong domestic liquidity, robust Q2 results, and favorable global crude trends.
Analysts like Sumeet Bagadia recommend Tata Motors, HDFC Bank, and BEL for short-term gains, while Sugandha Sachdeva suggests four Diwali picks for medium-term investors.
A special call option session for holding companies like Nalwa Sons, GFL, Kalyani, Pilani Investment, Maharashtra Scooters, Vardhman, and Bajaj Holdings will be held on October 29 to address valuation disparities between book and market values.
The week closed with bullish undertones, reflecting strong corporate fundamentals, a resilient banking system, and stable macroeconomic indicators.
As India heads into the Diwali season, market sentiment remains upbeat with expectations of sustained earnings momentum, softening crude prices, and continued FII inflows.
With several major results — including Axis Bank, Tata Motors, and Maruti Suzuki — lined up next week, investors can expect volatility with an upward bias as earnings season continues to drive direction.
Published by Barawakar | Market Wrap – 20 October 2025
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